Written by Bev Jenkin Tuesday, 25 January 2011 00:00

We have all been reading and hearing study results stating that, as the economy improves, up to 75% of employees are preparing to seek new job opportunities. In a recent job recovery survey a majority of individuals currently employed in the field of Human Resources stated that they feel the job market will improve within the next year.  That means that for most of us, employee retention must become a primary focus. Failing to retain a key employee can be very costly to any business.  Estimates have shown that the cost of replacing a mid-level manager can be anywhere from one hundred percent of that managers salary to triple the amount of the managers salary, depending on the duties they performed.  The amount can be even higher for upper management.  Add to this, the ill feelings of the manager’s co-workers, the insecurity of the other employees and lost knowledge and you begin to see the whole picture.  Employee retention is also critical as there will be fewer employees available to work over the next few years.  The upcoming population of available workers between the ages of 25 and 34 will decrease in number by 32 million, from what we currently have, as the Baby Boomer Generation reaches retirement age.

Four of the most common reasons for employees seeking new job opportunities are:

 

• A desire for a higher salary and better benefits plan that includes tuition reimbursement, life insurance, disability insurance and flexible hours.
• The desire for opportunities for career development and job advancement.
• Changing expectations that create dissatisfied and disgruntled employees, and,
• Wanting new experiences and an environment where they can utilize their talent and skills.

 

It is important to develop a “Human Resources Employee Retention Plan of Action” to hold onto valuable employees and protect the company’s investment and state of business health.  High turnover creates a bad business image and deters from being able to entice quality people. In order for the plan to be successful you need to “sell it” to every level of management and be sure that everyone is on-board with it.  Listed below are some of the components a successful Retention Plan should include:

 

• A policy that allows for fair and equitable treatment of all employees.
• Necessary tools, time and training for every employee to successfully do their job.
• A system for employees to learn and grow in their careers, including attendance at seminars, reading materials, cross training and opportunities for advancement.
• Methods to include employees in decisions that affect their work and the overall direction the company is headed in.
• A protocol for rewarding, recognizing and showing appreciation to employees that includes money, bonuses and gifts that link directly to “pay for performance.”
• A means to praise efforts and accomplishments.
• Strict policies forbidding ever threatening an employee’s job or income.
• Formulating guidelines for discipline that forbid the use of ridicule or shame.
• Establishing a way to make working fun and enjoyable; celebrate birthdays and work anniversaries; and, acknowledge professional achievements.
• Plans for adequate staffing so that overtime is not required and flex time is offered.
• Adherence to respecting an employee’s personal time.  It is important for employees to have a balance of personal and professional time.
• Clear job descriptions that outline precisely what’s expected. An outline of earning potential, methods of performance feedback, hold regular monthly scheduled meetings, and have realistic expectations of what can be accomplished in a fair amount of time, and lastly, 
• Executing a framework that allows employees to be successful. The quality of the supervision an employee receives is critical to an employee’s comfort level and job satisfaction.
  

Remember, everyone wants to feel that they have value and are a necessary part of the team!

 

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