The "Secret" to Keeping Your Best Employees
Talk about a wake-up call!
Employers realize that employee retention is critical to long-term success, as evidenced by the number one question asked of the Society of Human Resource Management: "How can we keep talent from jumping to the competition?"
Think you might know the best way to retain your people? Try this simple one-question quiz. You might be surprised!
Which do you think will MOST effectively strengthen employee retention?1. Pay your employees more than the competition.
2. Pay your employees fairly, and personally show them that you appreciate their value.
Good pay IS important to employee retention. But in surveys conducted over the past 60 years asking supervisors and workers to rank a list of motivators from one to ten in order of importance to workers, employees have consistently ranked "good wages" at number five, while bosses continue listing it at number one.
Employees said that "full appreciation for work done" is the number one most important thing to them, with bosses ranking it eighth (!). To further underscore the point, employees indicated that "feeling 'in' on things" was the second most important element to staying on the job; bosses ranked it dead last.
The difference between what bosses perceive that employees value, and what the employees themselves truly value, may be the greatest contributor to employee turnover. Six decades of studies continue to show that this disparity goes on even today.
But here's the good news: that same research continues to show that the "secret" to recruiting and retaining good employees boils down to two things:
- The pay is fair
- Bosses treat employees great!
If you're paying a fair wage but would like to improve employee loyalty and retention, don't pull out your checkbook just yet. There are some simple things you can do starting today that will keep your best talent from moving to the competition, as well as enhance your bottom line ... and that of your workers as well.
The most important retention techniques don't cost money
The key to employee retention boils down to the employer knowing what is most important to workers, then genuinely following through. One of the biggest mistakes bosses make is in establishing the form of recognition, but not the real substance of it.
An example is a company with an awards program that focuses on top achievers, but where the bosses don't routinely acknowledge "little" things that employees do. Keep in mind that the most important thing to employees is to simply be valued for their contributions. Certificates, plaques, and monetary rewards are all great motivators, but they pale in comparison to the boss simply saying "great work!" on the spot, or "thank you" when the employee does something right.
The result is employees who feel that their role is important. By acknowledging their contributions on the spot, you reinforce the behavior and increase the likelihood of it being repeated.
Another simple technique is to occasionally chat with employees. Just talk with them! Ask them how they're doing. Learn their spouses' names. Inquire about the new baby. Even if they don't open up right away, rest assured that your interest in them as people is the most important thing overall to them, and you'll see the results in their job efforts.
Another error that bosses frequently make is not paying attention to what motivates employees until it's too late. It's easier to maintain morale than it is to restore it once it falls, and far less expensive to keep your good employees than it is to replace them. Make sure that employees have a safe way to provide feedback to "the top." The best way to understand what you need to know is to ask them to tell you!
Keeping good employees even during hard times
Ken Coverdell has been in business through three recessions, the worst of which was in the late-1980s when he realized that he had to cut payroll in order for his company to survive.
"One of the hardest things I've ever had to do was ask people if they'd be willing to roll back their wages by 20 percent and stick with the company," says the owner of Blue Sky Designs, Inc., in Half Moon Bay. "The only thing we could offer was job security and the hope that we could get [wages] back on track within two years. We had about 20 employees at that time ... and no one left."
Coverdell says that relating to workers as people first, and to the roles they perform second, strengthens the commitment on both sides and creates solid, long-term loyalty. His philosophy works: the average longevity for employees at Blue Sky is around 15 years.
"If you're personable with people who work with you, it allows them to feel a bond of camaraderie. They're willing to take some personal risks and take ownership of the activities. It's about respect.
"But respect isn't just a bunch of back-patting; it's also holding some pretty strict standards and some high expectations," Coverdell continues. "By doing that, you encourage people to perform beyond their norm. At that moment, when you see it, if you're wise enough to point that out to them and reward them with the acknowledgement, then that person feels respected ... and that becomes the habit rather than the exception."
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© Copyright 2007 Michael Riley. All rights reserved.