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Print Edition StoriesFriday, April 17, 2009
How to retain employees
By Jill McCullough, ACBJ Wire Service
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Employers who lose employees today will miss them when the labor market tightens 12 to 18 months from now, warns John Greer, chairman-elect of the board of the International Association for Human Resource Information Management in Burlington.
“When the economy turns around, you are not going to be able to get back the employees you lose now,” Greer said. “It is one of the reasons why you can’t put a dollar figure on employee retention.”
Greer and Julie Stich, senior information and research specialist for the International Foundation of Employee Benefit Plans say the best way to retain employees is to keep them engaged with the company.
For starters, let workers follow their interests, and help them to develop their skills. Also, consider allowing employees to work in different areas of the organization. This will help to keep them challenged,” said Stich, whose organization is based in Brookfield, Wis.
Training is another component to employee engagement. Stich suggests in-house mentoring programs for key employees and those showing high potential. Such programs go a long way in terms of career development without a direct cost to the company.
“If employees see that you are willing to make a commitment to their development, they are going to know that the company cares about them and is committed to their growth,” said Greer, who adds that employers can also promote employee engagement via “on-boarding.”
“On-boarding is a process in which the employer introduces employees to the culture of the organization and continues (enlistment practices). In other words, recruiting should not stop when a person is hired, said Greer, who also suggests involving employees in corporate decision-making to keep them interested and invested in the company.
Another key is quality supervision, according to Greer. Supervisors should be aware of the goals and aspirations of their employees and show interest.
“Research shows that employees do not leave companies. They leave their managers,” he said.
Stich suggests employers review their companies’ benefit packages, ensuring they are competitive, even in a down economy.
Employers should consider flexible schedules and telecommuting opportunities for workers. Such benefits particularly appeal to Generation X employees, she said.
Keeping employees aware of the company’s standing is also very important, said Mark Gleckman, technology division managing partner of the staffing company Winter, Wyman in Boston.
Being transparent about the company’s financial state, said Gleckman, “helps take the anxiety out of the workplace.”
Philanthropic outreach is another low-cost but highly effective way to keep employees feeling connected to the company. Working with other employees creates a bonding effect, said Gleckman, and allows employees to meet people from other departments who they wouldn’t otherwise see. It also creates a sense of corporate pride, he added.
The final component to employee retention is making the workplace as pleasant and stress-free as possible. Employees tend to appreciate light-hearted working environments that encourage a bit of fun, Stich said.
“Bringing in pizza for lunch every once in a while, handing out gift cards, or throwing a holiday party can go a long way — you do not have to do anything too elaborate or expensive,” she said.
Although companies may have to invest some time and money in employee retention, experts say the alternative is to absorb the expense that comes with losing and replacing workers. Stich said it can cost up to two times an employee’s annual salary to replace a single worker.
“There are a lot of direct and indirect costs that come with losing and replacing a well-trained, experienced employee, in particular. When a company loses a high-performing employee, the employer feels the loss in productivity and morale,” said Stich, who attributes turnover costs to advertising, background checks, new-hire testing, interviewing, screenings, orientation and training materials. “You also have to consider the cost of the exit interview, severance pay, temporary help, and the overtime pay that will go to the employees who are taking on the extra workload prior to the new employee being hired,” she said.
Quick tips
• Keep employees engaged with the company.
• Make sure your benefit packages are competitive, even in a down economy.
• Keep working conditions as light-hearted as possible.
Lynette Cornell, Mass High Tech Editorial Intern, contributed to this article.
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