4 Ways to Utilize your Finances
for Employee Retention

03  shutterstock_140631424

“Start by doing what is necessary, then what is possible, and suddenly you are doing the impossible.”

~St. Francis of Assisi~

Client Sarah Asks:  In this economy, money has to work very hard for us.  We want to retain our best employees.  How should we allocate our finances to maximize our retention?

Coach Joel Answers: That’s a great question, Sarah.  Your company has a number of options—different ways to spend your money.  To best motivate your workers to stay with you, you first need to understand them.

Not all workers respond the same way.  Some of your options have tax consequences that might matter to your top talent.  Others may perceive one or another of these choices as more prestigious or of greater value to them.

So your first step is to know your key players.  Assess them.  Find out what is most enticing and likely to keep them working for you.

Then choose from these four methods those that will work best for you, your employees, and your company.

1. Competitive salary. This is the first rabbit most businesses pull out of the bag.  And for a very good reason.  It is effective.A salary that pays market value means there’s no financial incentive for your worker to leave.  They can’t expect a better offer elsewhere.  And when you pay a little above average, workers may feel they are being paid extra for any small inconveniences that come with the job.

2. Bonuses.  Sometimes companies need to see how their finances play out before they can reward their employees.   They may give workers an average salary with the promise of a bonus if the company does well.

This has the added advantage of offering motivation.  Each employee sees their salary more connected to the success of the company.  They may make that extra effort to help the company succeed.

The benefit to you, Sarah, is that the company keeps its bottom line lower in difficult years, but can reward employees and keep retention up by promising bonuses in good years.

3. Fringe Benefits. Top talent may be motivated to stay with the company for certain perks.  The choice corner office.  Company car. Use of the company jet. Pizza Fridays. A nice company gym or offering child care.

Some fringe benefits offer prestige and status that is more enticing than money alone. Some may fill a compelling need of your workers.

Here is where you really need to know your employees.  What kinds of fringe benefits connect with them?  Is this something that makes financial sense to the company?  Perhaps birthday recognitions are low cost, but highly satisfying to your workers.  That leaves money on the table for other retention methods.

4. Stock options or company ownership. When employees are vested with company stock options or a chance to buy into the business you strengthen their commitment to their job.  They are much less likely to leave.

You need to decide if this is a financially viable option for employee retention.  Does it make sense in your business model?

Sarah, you are wise to consider the best uses of your company’s finances to increase worker retention.  With the cost of hiring and retraining, it makes more sense to invest in keeping workers satisfied and happy.  You gain the benefit of experienced workers. And happy employees are more productive.

To understand your worker’s motivations and develop a retention plan designed for success, contact Joel.

Talkback: What has your company done to retain employees?  What has been most successful?

Image courtesy of DeiMosz/ Fotolia.com

Filling the Void:
How to Prepare for the Next Leadership Vacancy

Planning Career

“Our goals can only be reached through the vehicle of a plan, in which we must fervently believe, and upon which we must vigorously act. There is no other route to success.”

~Pablo Picasso~

Client Ron asks: Our company has got to get serious about a planning program for succession. We talk about it all the time, but only in some kind of informal, conversational way. “Oh, Janet would be a great comptroller if we could get her into a couple of training programs.” But there’s nothing in writing and no formal plan with benchmarks and milestones. I’m going to take on this challenge personally. But how do I even get started?

Coach Joel answers: Unfortunately, many companies never even think about a succession planning program until they are faced with some kind of crisis or emergency. Someone becomes ill or gets recruited by a competitor and suddenly there’s a huge hole in the organization chart and no one is available to fill it. You’re smart to shed some daylight on this issue. Here are three action steps I think you should take as soon as possible to tackle succession planning in your organization:

  • Create individual development plans
  • Start an internship program
  • Train high potentials with job rotation

1. Create individual development plans. Virtually every employee in your company should have a written career plan. This plan should include his or her core competencies, career goals, and what training programs are needed in order to get him from where he is now to where he wants to go. Be sure to include a time frame for each development activity.  Work with each person one on one, and let them develop their own plan with your guidance, rather than developing the plan yourself and dictating to them what’s to be done. Be sure they know the plan can be modified if situations or goals change.

2. Start an internship program. An internship program is an important component of succession program planning. I’m talking here about a special kind of internship, a formal growth structure for employees on the move, not an unpaid summer job for high school or college students. Let’s say, for example, that Kate, who is currently an IT supervisor, has expressed an interest in learning more about marketing. Kate can begin to spend a small percentage of her time in marketing, doing real work, such as a special project or a real problem solve. Kate should have a mentor who will support and critique her. At the same time she should be given opportunities to interact with senior marketing staff during meetings and trainings. Socializing with marketing staff outside the workplace would also help her feel comfortable and become more visible.

3. Train high potentials with job rotation. Job rotations are designed to give rising stars wide exposure to the big company picture by experiencing all phases of the company’s business. Don’t confuse job rotation with cross training, which usually takes place among employees within a department rather than throughout the company. As an important piece of your succession planning, you’ll want to set this up so that each program participant spends time assuming duties and getting hands-on experience in every department. For example, let’s say you’ve targeted Jeffrey as a potential future CFO. As a final phase in his growth plan, he might spend an entire year devoting 25% or more of his time to projects in HR, marketing, and production. Think of job rotation as an investment in leadership development that will ensure that promising young employees gain the experience they need to understand all aspects of the business.

When you set up this kind of structure, you’re doing two things. First, you’re letting your future leaders know you have confidence in them. You’re giving them an opportunity to chart their own course to a successful future. At the same time, you’re giving them a huge responsibility to rise to the occasion by devoting hard work and commitment to their own futures. Most, if not all, will rise to the occasion and you’ll sleep better at night, knowing that your company has the right people in place who can step up to the plate when the occasion demands it.

How’s your succession plan looking? Contact Joel today for some ideas you can use to whip it into shape.

Talkback: Do you have some succession planning tools that are working for you? Share your successes here.

Image courtesy of Welf Aaron / Fotolia.com

Use Talent Management Articles to
Super-charge Your Company’s Human Resources

talent management

“If you pick the right people and give them the opportunity to spread their wings—and put compensation as a carrier behind it—you almost don’t have to manage them.”

~ Jack Welch~

Carlos oversees the human resources department for an expanding oil company. As part his goal to educate and improve abilities of HR and the staff to manage human capital, he decided to find and share great articles. “I wanted a resource that would be of value for our employees and managers,” Carlos said.

“I wanted our people to understand that they could have more control over their advancement,” Carlos said. “It’s not just HR that controls talent management, leaders and workers have a say, too.”

Carlos researched talent management articles for human resources he could draw on for information to share. “Often I’ll ask the writer of a great article if I can repost it for my people,” Carlos said. “I know it’s unethical to just lift it from the web without permission.” Even without permission, however, it is acceptable to quote excerpts and provide a link back to the original article.

Great talent management articles can offer education and value nearly equivalent to semesters of coursework. Carlos looked for articles with depth and vision.

Ten Ways to Keep Your Star Employees is a great example of the best kind of article for his managers. “It fit right in with both empowering employees and managing talent, Carlos said. “Look at some of the points it covers!”

  • Empowering employees use their own gifts.
  • Discovering tasks your top talent loves to do.
  • Focusing on what workers are doing right in feedback and less on what’s wrong.
  • Communicating effectively so each person- management and staff- understand the task, the company policies, and what’s expected.
  • Helping your employees work smarter, not harder.
  • Offering quality of life enhancements—even when the tough economy doesn’t let you pay them more.
  • Letting employees focus more on what they enjoy.
  • Looking for advancement opportunities for your employees and helping them find those openings within the company for themselves.
  • Coaching and mentoring as a way to increase skills, value to the company, and chances for advancement.

Carlos also found cost effective ways to improve employee morale with this article: How Managers Can Improve Their Workplaces for Employees. The article covered the value of:

  • Keeping lines of communication open so employees feel their comments matter.
  • Adjusting work schedules with flex-time and other ways to keep talent that might otherwise leave the workforce.
  • Recognizing accomplishments—which have been show to add satisfaction to workers.
  • Developing programs and plans for workers to increase their skill levels. This increases the talent pool and makes the job of human resources easier.

“As I looked at talent management articles, some were particularly appropriate from a human resources perspective,” Carlos said. “3 Reasons to Invest in Leadership Development added to my understanding of the value of outside coaching in ways I hadn’t considered.” It said:

  • Coaching and training is cheaper than bringing on new recruits. The cost of training them and bringing them up to speed is much higher than training or coaching current employees.
  • Outside coaching relieves a burden on managers and allows managers to focus on their company job. Plus, you have an expert trainer teaching your employees, instead of a manager whose skills lie in a different direction.
  • Talent development benefits both the company and the employees. The company creates a succession plan of rising leaders and keeps proprietary information within the company. Staff knows they are valued and appropriately challenged.

“I found great value in reading talent management articles to help me with my company’s human resources,” Carlos said. “It also gave me insights into breaking news and new ways of using traditional strategies.” Carlos likes the fast learning that comes from articles and plans to continue mining top articles for more valuable information to help him retain his company’s top talent.

If you’re looking for articles on leadership, management, and work issues, visit Joel’s website. For assistance building your company’s human resources, contact Joel.

Talkback: Have you read a great article? Let us know so we can all enjoy it.

Image courtesy of RafalOlechowski / Fotolia.com

Six Articles to Fix Your Employee Retention Issue

Love your Job

“An employee’s motivation is a direct result of the sum of interactions with his or her manager.”

~ Bob Nelson~

Client Joan Asks: We’ve been really struggling with an employee retention problem.  I’d like to help my managers determine where the problem may lie and come up with some solutions we can implement to keep our employees productive and happy.

Do you have some articles I could recommend to them that would help?

Coach Joel Answers: I like the direction you are going, Joan.  If you allow your managers to read up on the way other people have resolved this problem, you get some buy in.

Then when they come to the table to discuss their ideas and solutions, you already have them taking ownership of the problem. They will be more interested in working toward a solution.

Here are six articles that will get you started.

1. How Managers Can Improve Their Workplaces for Employees.  Joan, the fact is, most employees leave because of their boss and the management.  The great thing about the suggestions in this article is that you don’t need to bust your budget to accomplish these strategies.

You’ll find seven simple steps you and your managers can take immediately to help retain more employees. Read Employee Retention Article.

2. Ten Ways to Keep Your Star Employees.  Anytime you have top talent, you want to have them happy and secure with you.  One of the issues that surfaces with rising stars is they will not stay if they don’t feel they are doing fulfilling work. Also, if they feel they are totally inundated with work they may become discouraged. Read Star Employees Article.

3. Highly Engaged Workplace.  Sometimes you find workers just “biding their time” at their job.  They don’t feel committed to the work. They stick it out because of the down economy, but don’t feel any loyalty to your company.  This article helps you identify the key things that bring your employees fulfillment.

When you find those benefits and work situation that engages your workers, you change them from “waiting to leave,” to “wanting to stay.”  It changes the entire workplace environment. Read Engaged Workplace Article.

4. How Men and Women in Leadership Can Help Employees Succeed.  When employees are properly trained and feel they are using their skill sets to succeed, they enjoy their jobs more.

Use this article to examine the training opportunities you have in place. Do your workers need tutoring, mentoring, coaching or on-the-job training to feel more valuable?  Are your employees confused about expectations and how you define success? This article will help you evaluate your workers better. Read Help Employees Succeed Article.

5. Give Employees What They Need. Sometimes as you evaluate your employee retention issue, you may discover that you have not given your staff the tools they need to succeed.

When workers stand on uncertain ground, they seek the security of another job.   With this article you’ll find six tips to strengthen your employees’ commitment to succeed at your job instead of looking elsewhere. Read Keep Employees Motivated Article.

6. Why Did They Leave? How to Retain Workers by Surveying Employees After They Resign. What’s the best way to determine whether your employees are happy or unhappy and why? Ask them! This article explains the importance of surveying current employees and provides examples of questions to include on your survey. Read How to Retain Workers Article.

Joan, as your managers look at these employee retention articles, they will see where they can strengthen the workplace and their management skills.  When employees enjoy their job, their manager, their work environment, and their pay you will find your retention problem disappears.

Looking for the solutions to your employee retention issues? Contact Joel for options specifically designed for your situation.

Talkback: What articles have you read lately that could help managers keep their workers satisfied? 

Image courtesy of roobcio / Fotolia.com

Make Your Employees Glad to Work

Happy People at Work

“Employees who believe that management is concerned about them as a whole person – not just an employee – are more productive, more satisfied, more fulfilled. Satisfied employees mean satisfied customers, which leads to profitability.”

~Anne M. Mulcahy~

What comes to mind when you think of business success? Improving the bottom line? Cutting costs while increasing profits? Those are important, but no business is successful for long without good, talented employees who are happy to come to work and do their best every day. Below are ways to focus on improving employee satisfaction – and increasing your business’ success and profitability at the same time:

1. Value your employees – in every way.

Did you ever have a boss who was quick to praise for a job well done – but stingy with benefits and pay? Actions always speak louder than words, and while current finances may not always permit you to pay top dollar, pay as much as you can based upon company profitability. In other words, the employee who toils five days or more a week to help make your company a success deserves to be recognized for that effort with praise and with benefits and pay commensurate with performance. Fair pay for work done is one of the best ways to improve employee satisfaction, and it’s also simply fair.

2. Create a culture of true camaraderie.

Of course, your first priority each day is to get business done and make your company successful. To do that, though, it’s important to have fun once in a while too, as colleagues. Schedule office parties occasionally where all employees are invited to bring their spouse/significant other and children, too. Acknowledge birthdays with a 15-minute impromptu party. Don’t frown upon spontaneous wiffleball games in the hallway; in fact, why not join in? Improving employee satisfaction means letting your hair down once in a while – prudently – and allowing your employees do the same.

3. Celebrate victories together.

All too often, companies reward management with big bonuses and lots of recognition, but overlook the accomplishments of lower-level employees, some of whom may have significantly contributed to management’s successes. That’s not fair, and employees (rightly) resent that. Instead, whenever your company has a big victory, celebrate together. Schedule a company lunch, or have a little party. Recognize your entire team – everyone. Recognition is a central component of improving employee satisfaction.

4. Be a part of your local community.

One of the best ways to create a cohesive work environment is to become a part of the local community. Connect with your community as a group, and give back to it. Get involved in community service as a company. Investigate what particular needs your community has. Serve Thanksgiving dinner at the local homeless shelter, or volunteer to participate in a cancer walk as a company team. Getting out of the work environment and rolling up your sleeves together toward a shared goal brings cohesiveness to your group that continues back at the office. Breaking out of everyday roles outside of the office can go a long way toward improving employee satisfaction in the office as well.

5. Encourage open communication.

Don’t just say you want to foster open communication; do it. If your employees don’t feel they can talk to management, they won’t; resentments will fester, and productivity and employee morale will fall.

Communication starts with you. Tell your employees how they’re doing, and encourage them to talk to you about how you are doing, too. This isn’t about insubordination, by the way. Don’t take the attitude that because you’re the boss, you’re naturally untouchable. If something’s wrong with the way the company is being run or the way people are being treated, employees should be able to tell you about it. If you’re a large company, you may not know that there may be a particular problem with lower management unless you’re told – and you won’t be if employees can’t speak up.

Communication shouldn’t just be about problems that need to be fixed, either. Your employees comprise your own rich brain trust that can help your company, products, or services become better. Encourage employees to share their ideas and reward them for those you use. When employees are heard and valued, improving employee job satisfaction won’t be a chore you “must do.” It will simply happen.

About the author: Erica L. Fener, Ph.D., is Vice President, Business Development Strategy and Analysis at Progressus Therapy, a leader in connecting their candidates with school-based PT jobs and early intervention service jobs.

Do you need happier employees?  For tips, help, and coaching on improving the satisfaction of your employees contact Joel.

Talkback: What steps have you taken to increase the morale at your office? What has worked best… or failed spectacularly?

Image courtesy of Adrian Hillman / Fotolia.com