Have
you given out many ten year service pins or gold watches recently?
Or are you finding employee retention is getting more and more difficult?
Over the past decade, firms have been forced to downsize, rightsize,
reorganize…pick a buzzword. The competitive environment forces companies
to make difficult decisions. Professionals have learned to look out
for 'number one.' Sounds cynical-but American workers are realistic.
Companies no longer offer lifetime security, so employees keep their
options open. With today's competitive job market, they have more
options than ever.
Why
do employees leave?
Experts suggest that if you can determine why employees are leaving,
you can reduce turnover by 5 to 10%. Doesn't sound like much, but
it can save millions! For large organizations, productivity lost to
turnover easily adds up to millions per year-and this is only one
of the costs. Other costs are more discrete, like "Short-Timer's Disease."
Caught up in their job search, not only does the Short-Timer's work
suffer-but they become distracting to co-workers as well.
Exit interviews
are virtually the only tool for determining why an employee is leaving.
Unfortunately, they're not very reliable since employees are hesitant
to tell an employer anything negative. Rather than risk anything,
exiting workers tell employers what their new job has to offer that
they don't have now. More money is a common reason cited, although
it is often not the real reason they're leaving. Commonly, more global
reasons prompt job moves, like lack of motivating awards and growth
opportunities, leadership and cultural change issues, and work/life
balance concerns.
Experts believe the new 'employment deal' can be summarized as: 'Treat
me right, and I'll treat you right. Treat me wrong and I'll leave
you faster than you can say high turnover.' Today employees have the
advantage-loyalty has taken a back seat to opportunity.
Motivating
Employees to Stay-
Reasons employees
leave are not always the same as why they stay! According to a report
in Workforce Magazine, companies shouldn't take a 'one size fits all'
approach to employment deals-assuming what is good for one worker,
is good for everyone else. "You thought you had to customize solutions
for customers? Get ready to customize an employment deal with every
employee."
Modern workers have a better understanding of their value to an organization.
They also realize that they have to be accountable for meeting their
own personal and professional goals, like balancing work and family.
Employees are as committed to their employers as ever, but on their
own terms. They want what they need, not just what an employer is
willing to give them.
Successful companies are becoming more and more innovative and flexible
to keep good employees. Bridgegate LLC, a management search firm,
polled 660 workers to find out what would persuade them to stay with
their current employer. Although a raise was the most common response
(43.2%), non-monetary issues were cited by more workers as motivators
(50.5%). The study suggests that to retain employees, companies should
look to improved benefits programs (23.1%), flexible work schedules
(14.1%), stock options (8.6%), and better training (4.7%).
Although money is still a critical factor, other benefits, like flexible
work schedules, shouldn't be downplayed. According to Dudley Brown,
a managing partner with Bridgegate, aspects of employment traditionally
thought of as "soft," are more important than ever to workers. "With
unemployment at near-record lows and the 'talent wars' in full swing,
more and more employees are in a position to weigh the value of non-monetary
factors when taking or staying at a job."
Commitment to giving employees options is an earmark of companies
that consider retention a priority. The reality is, if your company
isn't building options into its work environment, someone else is.
The loss of key staff members can be devastating to an organization,
but not just because of the vacancy. Losing employees can negatively
impact customer relationships, worker morale, and overall productivity-not
to mention loss of valuable skills.
Here are a few ideas to help you keep and motivate your employees:
Improve
Benefits Programs-
Companies can
offer a great benefits program, but if it doesn't meet the employee's
needs, it doesn't matter. Communication and feedback are keys to finding
out if your benefits program is appreciated. Sometimes frontline employees
don't invest in company sponsored programs, like the 401K, because
they don't understand the benefit to them. Also, employees with limited
earnings may feel they can't afford to part with the disposable income.
The same issues arise with health care coverage, where plans require
significant employee contribution. If this is the case in your company,
you may consider revamping your package. But before making changes,
ask your employees. Use surveys and benefits teams to find out what
employees really want. Why waste money offering benefits employees
don't value.
Offer
Flexible Work Arrangements (FWA)-
Although working
women with children were the catalyst for these types of programs,
times have changed and all types of workers want options. Faced with
doing more work with fewer resources, American workers are facing
pressure to work longer and harder. Flexibility helps keep morale
up and stress down, so that when workers are at the office they are
committed to a job well done.
Flexible work arrangements can be two types: full-time and reduced-time.
Full-time options may include:
Flex-time- (worker has varied hours rather than typical 9 to 5)
Flexible week- (fewer, but longer days, or short-days in six-day weeks)
Flex-place- (branch offices, telecommuting)
Develop
a flexible work environment-
Reduced-time options
include part-time or job-sharing. But a flexible work environment
doesn't happen overnight. Successful flex programs require organizational
support from the top-down and an acceptance of shared responsibility.
Following are strategies to help develop a flexible work environment:
Gain advocates-
Strategic decision makers need good, sound business reasons to implement
flex work programs. Emphasize improved retention rates and increased
productivity as reasons to consider the initiative. A pilot program
with a few volunteer employees may be a way to find out if an FWA
is a motivator for your workers.
Put systems in place- Be prepared to provide managers with
the tools they need to manage non-traditional work arrangements. Models
and case studies of companies who have implemented successful flex
programs may be an effective way to train managers how to handle the
changes.
Monitor progress- Consistent communication
and regular feedback are critical to a successful, enduring FWA. Consider
implementing a flex team to regularly monitor the program and make
adjustments in systems and policies where necessary.
Sell the program- Make sure your staff understands what is
available to them and uses it. Flex programs are only successful if
they're actually used!
Companies are putting themselves in their employees'
shoes. If you promote a culture
that addresses a worker's needs first, the rewards will come back
ten-fold. Retention isn't just an HR issue, it's a business issue.
And smart companies know, loyal and motivated employees are the biggest
assets they have for growth and improving the bottom line.
Sources: Benefits Program Helps Retain Frontline Workers by Dawn Gunsch.
The Challenge of Retaining Top Talent: The Workforce Attrition Crisis
by B. Lynn Ware, Ph.D., and Bruce Fern.
Flexible Work Options; Factors that Make Them Work by Elizabeth Sheley.
Making Work Flexible: A Summary by Catalyst.
Show Me More than the Money: Benefits; Flex-time Keys to Employee
Loyalty from the Society for Human Resource Management.
The New Loyalty: Grasp It. Earn It. Keep It. by Jennifer Laabs.
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