Decades ago the leaders of organizations seldom talked about the business issue that now reportedly keeps them awake at night: the challenge of retaining talent. Research reveals that while pay and benefits matter, you can’t count on money to retain talented people who have employment options. Key motivators include challenging and stimulating work, a chance to learn and grow, a good boss, and a great people to work with. Managers can influence these major retention factors. The problem is that many managers don’t believe they have the power to hang on to the best and brightest. Yet retention is a hot issue with a big reason.
- Talent is the only key differentiator. It separates you from your competitors and ensures your company’s place in the future. While capital is abundant and technology is easy to access, brainpower becomes the major asset for most businesses.
- Good employees don’t even have to leave their desk to find new jobs. The most popular job-search site like the LinkedIn which is the world’s professional network on the internet, is one of the most popular platforms for finding jobs and recruiting for open positions. Headhunters and corporate recruiters practice a multifaceted science complete with firewall-breaking strategies to identify and steal top talent.
- Experts agree that replacing a talented employee costs at least two times his or her annual salary. The hard costs include search companies and sign-on bonuses. Softer opportunity costs include lost customers, contracts, or business. Replacing platinum employees (those with specialized professional skills) will cost you around 4 to 5 times their annual salary.
- You’ve seen talent loss following a major organizational change or downsizing and know that you’re at risk. Remember those talented employees who left 6 to 12 months after your last downsizing? They were overworked, demoralized, and pessimistic about the organizational future. If you are facing major change, you’d best double your retention efforts.
Techniques for Retaining Employees
Understand what motivates people.
We have asked several employees why they stayed in an organization for “a while.” Here are the top five responses:
- Exciting challenging work
- Career growth, learning, and development
- Great people
- Fair pay and benefits
- Good boss
These answers are no surprise. For more than 80 years researchers have studied the factors that satisfy, motivate, or engage their talented workers, and findings match ours.
Keep the Motivational Import of Remuneration in Perspective
If employees aren’t challenged or growing, or if they don’t get along well with the boss, their paycheck probably won’t keep them for long. Even lucrative stock options are being bought today by companies wanting to steal talents.
Know Where the Buck Stops
Nine out of ten managers will say that what keeps people is money. Some believe it, others hope it will absolve them of responsibility. They can then point the finger at senior management, human resources professionals, or the compensation committee. These players all have a role in retaining talent, but experts agree that the manager is central to attracting and retaining talent.
How does the manager begin to do that?
First, you need to find out what individuals on your team really want. Don’t guess, and don’t assume they all want the same thing (like pay or promotion). Try this. Tell all your key employees, one at a time, how critical they are to you. May be you’ve told them before. If so, tell them again, “You matter so much to me and to this team. I can’t imagine losing you. So, what will keep you here, and what might entice you away? What things do you want/hope for/need to stick around for a while?” You may not have opened that conversation for fear they’ll ask for something you can’t deliver.
So how will you respond if your top guy says he wants a 20% increase and you don’t have the power to give it to him right now? Too many managers respond with something that shuts down the dialogue and makes a key employee feel diminished. Be honest, but let him know you care enough to look into it. For example, you might say, “You are worth that and more to me. I am facing some budget constraints right now, but let me investigates the possibilities. Let’s meet next Friday to talk more about your request. Meanwhile, what else matters to you?” Usually there will be at least one thing he wants that you can give. The key is that you’ve shown this talented employee that he is worth the time and effort to try to fulfill his request.
Select the Right People and Support their Growth
- Get the right people in the door in the first place and don’t resort to desperation hiring. Remember that today’s hiring mistake is tomorrow’s problem.
- Enrich and enliven their work. When the thrill is gone, so are they.
- Allow employees to grow, or they’ll find an employer that will. Think about how you can develop your workers’ talents. Remember to ask individuals what and how they want to learn. Mentor them, and they are twice as likely to stay. Encourage, nurture, and teach them how to be successful in your organization. Link them to mentors, coaches, leaders, or coworkers.
- Identify options other than promotion or “up.” Help your key employees to uncover multiple options, including lateral moves, special projects, or growing while in place.
Develop a Management Style that Inspires Loyalty
- Loyalty is still possible but it is increasing complex. Millennium employees can be committed to the team, the project, the boss, the mission, and, yes, even to the company – that provides what they want and need.
- Show respect in many ways. Treat people fairly, not “identically” and trust them; they’ll prove to be trustworthy. Create a culture of inclusion, valuing different experiences, and attitudes. Guard against negative behavior that might turn off or turn away your talent.
- Provide feedback. Talented people want to know how they are doing and how you think they could improve and grow. Give feedback clearly, trustfully, and respectfully; in return get feedback from them about your strengths and opportunities.
- Reward creatively. Use the universal reward: praise. Use it often and authentically with every one of your talented people. Then individualize rewards. Don’t guess what people want – ask!
Create a Work environment that People Love, Enjoy, and Respond To
- Many busy high-stress organizations admit they’ve become a fun-free zone. Ironically, fun may be just what they need to ease the pressure and stress. It’s definitely what they need if they are to retain their fun-loving employees. Find ways to make the workplace enjoyable.
- Information is power. Give it as freely, openly, and often as you can.
- Give people space. Provide the freedom to get the job in ways that work best for them, Trust them, negotiate with them, open your mind to really hear their requests, and brainstorm creative solutions.
- Encourage people to have a life outside work. You’ll get employees who show up refreshed and ready to work.
- Uncover and discover new opportunities inside your organization so employees don’t have to seek them outside.
Conclusion
Your success depends on keeping your best people. The keys to retaining talent are known, but are unfortunately seldom practiced. If you manage others, you have phenomenal influence over their decisions to stay or go. If you have managers reporting to you, they may need help in becoming retention-focused, retention-savvy leaders. Be clear about what keeps people. Customize your retention strategies to individual needs and wants – and pass the message and method on to anyone who manages others in your organization. The success or failure of many organizations is increasingly determined by this single issue.
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