Builders and Contractors Exchange
Weekly Bulletin: 20 Dec 2004
Employee Retention: Beyond Pay and Benefits
By: Lisa Thatch
With the holiday season upon us, this is a good opportunity for employers to take stock of their most valuable asset - their employees. The job market is extremely competitive, thus retention of key employees is more important than ever. Maintaining high retention levels significantly lowers the costs of recruiting and training new employees. So, how can companies make employees happy, keep retention rates high, and ultimately lower human resources costs?
Today's employees seek more from their workplaces than a paycheck and a health insurance plan. Retention of good employees requires more intangible benefits. Below are some factors to be considered in maintaining a happy and productive workforce.
Opportunities for Employee Growth and Challenge. Keeping employees interested and challenged is vital. Although opportunities for promotion may be sparse, employers can stimulate employees' growth by ensuring that they remain laterally mobile. Cross-training employees to perform several jobs provides opportunities for "growth" between departments. By providing training opportunities and chances to explore different positions within the company, employers can stimulate an employee's need for challenge and desire to evolve within the organization. The key here is to avoid feelings of a "dead end job."
Emphasize Communication and Employee Feedback. Employees value a workplace in which their input is encouraged and appreciated. An "open door policy" that encourages employees at all levels to ask questions, contribute ideas, and resolve issues is essential. Open forums and "town hall" meetings are often seen as a plus with employees. Informal meetings, newsletters, email news briefs and bulletin boards are all good ways to keep the corporate lines of communication open, thereby minimizing "the grapevine" method of miscommunication.
Balance. Employees develop loyalty for organizations that respect them as individuals, not just as workers. Work scheduling options send the message to employees that the company understands they have a life beyond work. Flex schedules, part-time options, job sharing and telecommuting all offer options to balance today's hectic demands.
Employee retention is not an easy issue to tackle. However, if the importance of meaningful work, voice and balance are addressed, employers will find that they can increase the retention rates of valued employees, thereby significantly lowering human resources costs.
Questions?
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This article is meant to bring awareness to this topic and is not intended to be used as legal advice.