Employee Retention Strategy
“While pay and benefits were important, they weren’t real drivers of retention.”
~ Robert Morgan ~
Dianna has found herself, somewhat unexpectedly, on the hot seat. As HR manager for a large manufacturing and distribution company, she is responsible for so much of the day-to-day operation that she has been ignoring some big picture initiatives. Suddenly, the company’s employee retention strategy, or more correctly its lack of one, has risen to #1 on her CEO’s hot list. Dianna starts researching best practices used in companies similar to hers and then calls her direct reports together for a brainstorming session. As Steven Covey advises in Habit #2 of his classic Seven Habits of Highly Effective People, most good personal and corporate strategies begin with the end in mind. Diana knows their turnover rate is way too high, so she and her team begin with the goal of reducing turnover by 30% in the next 12 months. The team agrees that their wages and benefits are highly competitive, so they look for other areas that need attention. They focus on developing three key initiatives that can quickly and directly impact their turnover rate.
- Tell the whole truth and nothing but
- Hold managers accountable
- Put out the welcome mat
1. Tell the whole truth and nothing but. A good employee retention strategy starts with recruiting. This philosophy applies whether you are using a search firm, posting on an online job board, or running newspaper ads. Employees most often leave a company in the short term because the job was either oversold or undersold. The new employee needs to fully understand what the job involves and this means his or her expectations should be based in reality. Will he be on the phone six hours a day? Will she be dealing with the public? Does the job involve a certain amount of routine or monotony?Management must clearly communicate what the job responsibilities are before an offer is made.
2. Hold managers accountable.Each individual manager must take responsibility for directing the on-boarding process for his or her own employees. This means spending time to acquaint new hires with company policies, procedures, and traditions. Within the first 90 days, the new employee needs to feel totally aligned with the company’s vision and mission, and totally committed to its success. Each manager must develop a training program that not only covers the standard orientation information session but also provides the employee with a personal training and development agenda to be completed within the first 90 to 180 days. The manager also needs to provide a check-in schedule, so that the new employee knows when he will be debriefing or going over personal progress reports with the manager.
3. Put out the welcome mat.Every new employee needs to feel at home from Day One. This means getting ready ahead of time so that there are no missing pieces. All the paperwork is assembled and ready to complete. Someone is available to walk the employee through the how-to, such as enrolling in the insurance program, signing up for the 401-k, the daycare facility, or the softball team. The photo ID badge is issued on the first day so that the new hire doesn’t have to deal with security issues.Someone is designated as the go-to person if questions come up during the first week or two. Most important, every new employee should be put on a team and given a meaningful project or work responsibility to get started on.
Corporate management needs to view employee retention strategies as an investment that pays dividends, not an expense to be avoided. Time and money spent now will add strength to the talent pool and dollars to the bottom line.
Whether it’s an executive coaching program or a strategy development conference, Joel has some answers for you. Contact him today.
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