Keep valued employees in uncertain times

By: Sacha Cohen
From: USA Today - special for the Careers Network - – August 2002

Golden handcuffs used to be one option. So did dot-com-era perks like concierge services and stock options. And of course, strong leadership has always been critical.

But there is no single magic bullet for keeping employees satisfied and engaged at work. Instead, HR professionals and managers find it takes a delicate balance of many factors to keep employee retention high and job dissatisfaction low.

"No one thing is going to work for every company, especially as businesses are competing with a free-agent, post 9/11 mindset," says Susan Ascher, president and CEO of The Ascher Group, a provider of contract human resource professionals. This means offering a combination of standard and non-standard benefits to attract and retain employees such as medical insurance, vacation time, sabbaticals and employee appreciation programs.

Health insurance, vacation and compensation are the three most effective retention tools, according to the Society for Human Resource Management's 2000 Retention Practices Survey. Concierge services, non-compete agreements and telecommuting are the least effective, according to survey respondents.

A competitive, broad benefits package is certainly important, but employees also want flexibility. "Providing employees with choice regarding their benefits is key, so they can select the benefits that best meet their own and their family's needs," says Scott A. Cohen, New England practice director at Watson Wyatt Worldwide.

"We have found that health benefits are especially important for recruiting and retention, followed closely by defined benefit and defined contribution plans," Cohen says. "While there is obviously a baseline of benefits that needs to be provided to attract and retain top talent, the importance of choice cannot be underestimated."

More than benefits

Benefits and perks may seem like the answer to high employee retention, but the reasons people stay or leave goes far beyond that. High potential employees leave because of inadequate opportunities for promotion, dissatisfaction with company management and dissatisfaction with pay, Cohen says.

"In essence, it boils down to a feeling that 'I'm not valued around here as much as I might be elsewhere,'" he says.

Lisa Schoenberg, a group director at pharmaceutical company AstraZeneca, knows what it takes to be a good boss. She supervises 100 employees and her group has the lowest level of employee turnover in the company. Part of her success is learning to "keep a finger on the pulse" of employees without micro-managing.

Schoenberg says she believes making professional development a priority, trusting others to get the job done, empowering those you supervise and emphasizing teamwork are crucial elements of a successful retention strategy. She also encourages her staff to attend management and leadership skills training programs.

Learning and career development are essential, says management consultant Roger E. Herman of the Herman Group. "People want to maintain their marketability. They need choices in their lives and the ability to control their own careers. You need to provide opportunities for growth. Some employers are fearful that if they do that, their employees will leave. But if you do this and everything else, people will stay."

Communication, control and engagement

Open communication is one of the most important elements when it comes to happy, loyal employees. Eighty-four percent of employees think it's important to receive work performance reviews and 70% want to know how well, or poorly, their company is doing, according to a 2002 survey conducted by Randstad North America. An overwhelming two-thirds of employees want to feel they are part of a "company family."

"Open, honest communication can make all the difference in the world," says Jim Reese, CEO for Randstad North America. "When managers and owners talk to their employees about job performance and how the company is doing — and when they truly listen to employees — they're rewarded with a happier, more loyal workforce."

Employees who feel empowered and in control of their careers are also more likely to stay with a company. "The best organizations are the one where employees have a say," says Tom Thrower, general manager of Management Recruiters of Oakland, Calif. "Everyone wants to be in control. They need to be able to voice their concerns and needs. Companies that don't listen are the ones that lose the most."

"Retention means more than just keeping employee's bodies at their desks," say Beverly Kaye and Sharon Jordan-Evans, co-authors of Love 'Em Or Lose 'Em. "It means engaging their minds too."

Over the past three years, the authors have asked more than 14,000 people why they stay with an organization. A whopping 50% stay for exciting and challenging work, while only 33% cite "fair pay" as a top reason. Supportive management and/or a great boss come in fifth on the list of the top five reasons .

Jordan-Evans advises managers to talk with employees regularly about their abilities, choices and ideas. Supervisors also should look into career paths outside of simple vertical moves.

"Often a lateral move, especially today, can be very positive. It used to be the kiss of death. Now, we see that organizations are really doing a lot of lateral moves ... such as moving people to other teams. The reason is to help expand the person's knowledge," Jordan-Evans says.

Smart managers know not every solution will work for every employee. "Managers need to know their individual people, and know the engagement issues for each person. For some it's about flexibility, for others its about challenge, for others it's about family," she says.

Spend time with employees, even going so far as to try their jobs for a day, says Dwayne Clark, author of Help Wanted: Recruiting, Hiring, & Retaining Exceptional Staff. "You need a deep understanding of the day-to-day demands of their job positions. This means having regular, ongoing meetings with staff, listening, taking their advice, and most importantly, showing them that their suggestions have been put to work and used in a productive and helpful manner."

Management needs to be sensitive to employees. Downsizing and layoffs have left a bad taste in people's mouths. "Employers need to rebuild relationships with their people and develop a culture that is one of collaboration, mutual support, caring as well as productivity and achievement"