The Retention Intention Dilemma

When a company goes into the market place in search of its talent, it does so intending that decision to be a reasonable investment decision. So what happens when your new employee cuts your investment down by leaving?  

One of the worst conversations a manager can have with a good employee is the one where they are telling you they are leaving your company. From there, the degree of severity usually only gets worse! You can usually measure your depth of depression in direct relationship with the following:

·       How hard it was to find the right person;

·       How much time it took to find them;

·       How much it cost to find them;

·       How much training and education you invested in them;

·       How much vital information that will walk out the door with them;

·       How much vital information may walk out the door & straight to a direct competitor;

·       How much direct productivity will be lost in finding a replacement;

·       How much time it will take a replacement to produce at the rate of the departing employee;

·       How many other good employees may see this as a sign that they too should be looking around.

And finally, how much in aspirin and alcohol you can expect to pay for to get you over the personal pain you are about to experience!

It is no wonder that the more recent studies in the United States quote two and a half times a person’s annual salary as the price to pay in losing a good employee.

If we know the costs and pain of such a loss can be so dramatic, why do we spend so little conscious time on the retention issues? When we know that the key discernable difference between us and our competition is likely to be the people who work for us and what they produce, it seems obvious that we try and keep the best after going to all the trouble to get them in the first place.

Again, understanding why people are more likely to leave you is the best starting place to correcting possible issues. However, the amount of businesses that don’t conduct any type of reasonable exit interview let alone an in-depth and independent one is quite staggering. Wouldn’t you expect people want to know how to stop this happening? You may be amused to know that not only do many companies not conduct an exit interview, they actually ostracise the departing individual. This traditionally has the effect of confirming the individual’s initial decision to leave!

You probably already know why people leave your business. It may however surprise you to learn that most studies indicate the primary drivers are often not about pay. Good people can usually attract the type of pay they want across the breadth of the market place they work in. After all, they ARE good people! The most common reasons given usually revolve around:

      ·       Poor supervision and management

·       Lack of career opportunities

·       Poor operating culture

·       Lack of rewarding work

·       Poor investment in knowledge transference

·       Lack of feedback on performance

·       Pay related decisions.

These are all areas that can be actively managed through improved communications and focus. Ironically, they not only force good people to move from their job to another company, but provide you with one part of the information jigsaw. It is an immediate indicator that not all is right. You may wish to look at other indicators such as absenteeism, productivity rates, workers’ compensation issues, and employee grievances along with turnover to understand that something is very wrong here.

Communication and focus. These two issues seem to lie at the heart of the retention issue. They can start from day one. Those businesses that pride themselves on an induction program that brags about “hitting the ground running”, are usually inviting new starters to just hit the ground. First impressions are as important to your employees as it is to the customers they directly or indirectly serve. More importantly, it shows from day one that the company cares about the individual, sees them as a person to be prized, nurtured and rewarded for their contribution. How many of us feel like that when we join a new company. I can tell you now that those who do are far more likely to stay.

The innovative and knowledge-hungry employee is no further away from the conservative and steady employee in terms of what they respond to. They like to be trusted. They like to be respected. They like to be talked to, considered and advised. They like to learn. They like to be rewarded. They like constructive feedback. They like to be treated like an adult. They like “give-and-take” environments. They like a collegian atmosphere. They like to enjoy what they do. They like a clear balance between work and home and they like an employer who respects that. They like a fair day’s work for a fair day’s pay. They like to celebrate in victories, and take responsibility to do better when goals aren’t attained.

Well, you may say to all of the above; “Oh, no they don’t!” But I ask you, isn’t that what keeps you in your job? If the answer is no, then I will be a little bit surprised and quite a bit sad. That means you stay because you have to, not because you want to. And that’s bad news. After all, the old saying “a person who loves their job doesn’t have one” has to be better than looking back on several working years of your life and saying “What a hateful waste!”

 Retention is quite a simple process made difficult by our willingness to be distracted from what matters. If you keep close to your people and listen to what they’re saying, there are answers everywhere. Some of the current and interesting answers emerging are:

      ·       Employee share schemes or options

·       Movement towards quick monthly feedback sessions versus the once a year appraisal

·       Inviting and fun induction programs

·       Assignment of mentor

·       Telecommuting facilities

·       Casual dress policies

·       More fun work environments, from exciting furniture and décor, through to play stations and free soft drinks

·       Upward feedback and culture surveys

·       Project bonuses

·       Flexible work hours

·       Free or heavily discounted company products or marketing material

·       Family reward days (rewarding the family of the employee)

·       Free lunches ad hoc

·       Corporate Web sites with facilities for employees to create their own pages

·       Support of employee development and studies

·       On-job massages and Tai Chi

·       Company supported social clubs

·       In-house exchange programs

·       Additional leave

·       Additional superannuation contributions

·       Donations on behalf of the employee

However, the greatest investment still remains in the relationship between the employee and their employer. Investment in your talented employees through this relationship seems logical. What’s probably more logical is that you should invest in everyone you’re connected with, talented or otherwise. After all, you got them to join. How hard is it to keep them?