Strategies for retaining your best employees
According to a study conducted by HBR, a high performer can deliver 400 percent more productivity than the average performer. I bet you don’t need me to tell you how much you need high performers in your organisation. However, it is not enough to have a strategic recruitment plan to attract and hire high performing employees, it is critical to have strategies for retaining them. The HBR study further shows that one in every five of high performers intends to leave in the next six months. I bet you also don’t need me to tell you how much your competitor would love to have them. Now you see why retaining high performers is top priority for high performing organisation.
Reid Hoffman, Co-founder and Executive Chairman of LinkedIn writes about how companies do not like to commit to complete job security or professional development, yet expect loyalty from employees.
Meanwhile, organisations need to come to terms with the fact that engaging and retaining millenials is a different ballgame from doing same with baby boomers. A new report from Deloitte has found that the world’s millenials express little loyalty to their employers and feel that majority of businesses have little motivation beyond profit; they place personal values and interests above organisational goals and attach importance to a good work/life balance. A publication on Time Magazine sometime in March 2012 gives an insight into what millenials value:
‘A new poll reveals just how different Gen Y workers are from their Baby Boomer forefathers. Among other things, millenials (those in their 20s and early 30s) want flexible work schedules, more “me time” on the job, and nearly nonstop feedback and career advice from managers. They’re also more likely than average to think the boss could learn a thing or two from their young employees. Oh, and they really want to be able to wear jeans at work.’
As the millennial generation grows in the workforce and baby boomers retire, managers and human resources professionals will need to develop retention matrix that take into account the generational differences between baby boomers and millenials study conducted by PWC finds that millenials will make up 50 percent of the global workforce by 2020. So how do you keep your valuable employees with you for as long as possible? The tips below will help you develop a winning employee retention strategy that cuts across generational divide.
Employee engagement: A highly engaged workforce makes the difference between a company that thrives and one that is barely surviving. As far back as the 1990’s, employee engagement was identified as the most important factor in helping companies grow. Ever since, it has been consistently found that there is a powerful link between engaged employees and crucial business outcomes. On the other hand, employees who are not engaged are emotionally disconnected from the mission and vision of the organisation and may end up hating up their jobs. It is not unlikely that they will infect others around them with their negativism.
Teach Managers People Management- Many organisations do not realise the extent of influence that their managers have on employee performance and even retention. Research conducted by CEB suggests that effective managers can have an enormous impact on a company’s bottom line. They can increase the retention level of direct reports by 40 percent and performance levels by 25 percent. As important as the role of a manager is, many organisations do not put deliberate thought into the development of their managers. Invariably, many employees find themselves in managerial roles without any kind of preparation. Employees often cite their managers as the main reason they left or are planning to leave an organisation.
Provide career opportunities: Visible career paths provide concrete evidence of an employer’s commitment to the value of workers and their development. Supervisors can help employees plan their career development with the company.
Define your hedgehog concept and strengthen your corporate culture: You are not the only one who wants your business to be at the top of its competitors all the time. Guess what? Your employees want it too! People want to work for the winner. Not only does this give a sense of security, it also instills a sense of pride. The first step is to understand your company’s competitive advantage—what is it that sets you apart and above your competitors? Make sure your employees know about it. Additionally, build a work environment that enables employees to maximise their potential. Your organisation must entrench a culture that encourages adequate employee compensation, rewards system, communication, teamwork, ownership and accountability, work-life balance as well as training and development.
Conduct Stay Interviews: In addition to having exit interviews where you ask people why they are leaving your organisation, consider conducting stay interviews and ask people why they would leave your organisation. Ask questions such as: Why did you come to work here? Why have you stayed? What would make you leave? What about your managers? What would you change or improve? Then use that information to strengthen your employee-retention strategies.
Bolaji Olagunju