One
can often hear managers lament that it's hard finding good
help, but more often than not, they should be worrying more
about how to hold on to the good help they already have. Every
day, good employees walk out the door for opportunities elsewhere.
In fact, U.S. businesses spend over $200 billion annually
recruiting and replacing these lost employees.
Did
you know that more than a third of Americans are actively
seeking a new job while almost half are passively seeking
one? Despite a slowing economy, in which employees tend to
hold on to what they have, rates of voluntary attrition -
that in which an employee quits on his or her own accord -
continue to creep up. The costs of employee turnover can reach
one-and-a-half times their annual salary and can be much higher
for managerial and sales positions.
So,
how does a company attract and, more importantly, retain key
employees? Many factors can lend to an employee's decision
to leave. Most employees feel that they are worth more than
they are actually paid and pay is the most basic measuring
stick for how a person is valued in an organization. But humans
also work for reasons beyond just monetary. People seek a
sense of purpose through their work and also look for acknowledgement
in the work preformed.
Three
areas that many companies focus on to retain key employees
is through their benefits package, rewards and recognition
and managerial training. Companies who look at their benefits
package as a cost center to be minimized are missing out on
a major trend that is heading the other direction. Employers
are looking at the benefits package as a way to retain a wide-variety
of employees. Younger employees want 401Ks, HSAs, and flexibility
in their hours worked. Older employees want more time off
to enjoy life and access to affordable health care. Companies
can tailor their benefits packages to attract and retain both
categories of workers.
Rewards
and recognition are an additional component to retain employees.
Employees want to be recognized for a job well done - by their
supervisors and their peers. The key to successful reward
and recognition programs is making sure that they are meaningful
and attainable; otherwise the program can have a reverse effect
on company morale. Rewards should be open and visible to everyone
in the organization. In addition, rewards should be based
on well-defined criteria. When possible, rewards should have
a personal touch. Finally, rewards should be based on either
an event (hitting a sales goal) or a time frame (perfect attendance
for the year).
Finally,
when it comes to keeping your people happy, keep in mind that
people don't leave companies, they leave managers. Hence,
it is imperative to train managers how to treat the people
that report to them. The National Association of Manufacturers
(NAM) has conducted a survey of 20,000 workers over the last
20 years. The top ranked items that employees want are 1)
full appreciation for work done, 2) feeling of belonging,
and 3) help on personal problems (compensation was fifth).
Managers have a major impact on those three items, so spend
the time and resources teaching them how to interact, coach,
and listen to those who report to them and watch your turnover
rates drop precipitously.
In
summary, the foundation of any successful business is its
people. Thus, any shrewd business knows that by taking care
of its people, it is in effect taking care of its future.
