A recent survey of 350 human
resource managers shows that employee turnover is becoming one of the most critical
workplace issues. Sixty percent say that skilled-person power is "scarce". Forty
six percent say that worker retention is a "very serious" issue and another
28 percent believe it to be "serious".
Companies that take the
problem seriously and implement programs to ensure employee satisfaction have
the highest retention rates. "Show me the money" is not the singular solution.
While bonuses, stock-options, and flextime are appreciated, what employees really
want is some assurance of continued employability. Here are the most popular
worker retention strategies:
78% conferences and seminars
67% tuition reimbursement
67% managerial training
58% pay for performance
57% interpersonal skills training
55% technical training
Five of the top seven areas
are all related to learning. Today's workforce recognizes the value of continual
personal improvement as a way to assure steady employability. Yet many companies
still find it easier to throw pay increases at the problem rather than take
a long term view.
A recent study of 4000 professional
and clerical workers found that job satisfaction keeps more workers than pay
levels alone. The survey found that only 6% of people who were satisfied
with their jobs but unhappy with their pay plan to quit. The percentage jumps
to 27% when they were dissatisfied with their jobs but happy with their pay!
If they were unhappy with both their pay and job situation, the percentage
of those ready to bail jumped to 41%!
The challenge: what makes
for satisfaction? The answer: opportunity for career development through education,
meaningful work and appreciation, 360 degrees of communication, consistent performance
expectations and consistent accountability, and work/life balance.
Pay is easier and quicker.
Creating a culture for satisfaction takes time, prompts internal analysis, and
leaves long-term positive results on the bottom line. Don't tie pay increases
to only rank and power. Work at getting away from the notion that you have to
move up to make more. Remember that front line people hold customers in their
hands. Shouldn't they be among the most well-trained and well-paid people on
your staff? Reward people for what they know and do, not how long they've been
on the job or how many people they supervise.