As Jack Welch once said, “It goes without saying that no company, small or large, can win over the long run without energized employees who believe in the mission and understand how to achieve it.”

Retaining key employees is essential to the success of any organization.  That isn’t news.  However, many leaders think that the key to retention is pay.  Well, guess what, it’s not just about the money.

As Amanda Menahem, HR Director, Hastings Direct says “More money may engage you [ the employee] for the short term, but if you can’t communicate with your manager and don’t feel reasonably autonomous at work, then no amount of pay rises will be sufficient.”

Yes, money is an important aspect, but it’s not everything.  Do you have what it takes to retain your employees?  Read on to make sure you know what it takes!

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Remember, all the information in this blog post is published in good faith and for general information purpose only.  I am not an attorney, nor do I provide legal advice. The information provided is my personal opinion and not that of any organization, business, company, agency or other individuals.  The author is not liable for any losses or damages related to actions or failure to act related to the content of this article. If you need specific legal advice, consult with an attorney who specializes in your subject matter.  Any action you take upon the information you find on this website (www.hrraw.com), is strictly at your own risk.

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Penny Horton | July 5, 2018

So if the key to employee retention isn’t just money, what is it?

Key Elements of Retention

• Engagement

It is NOT:  Employee Happiness, Employee Satisfaction

What it IS:  An emotional commitment to the organization and its goals.

How you get IT:  Through Communication and Job Connectivity.

• Recognition

It is NOT:  A one-size-fits-all approach, Disingenuous

What it IS: Acknowledgement and appreciation of an individual or team’s behavior, effort, and accomplishments that support the organization’s goals and values.

How you do IT:  Sincerely, timely, and individualized; each person has his/her own preferences on recognition including the desire or lack of public recognition.

• Reward

It is NOT:  Only about money

What it IS:  Positive outcomes that employees earn through their performance, which are aligned with organizational goals and individualized to meet motivational factors.

Examples of IT:  Work-life balance, positive, fun and motivating work environment, professional and personal relationships, learning and development opportunities, health and wellness programs, safe work conditions, climate-controlled environment, relaxed dress code, flexible work schedules, company sponsored events, employee activities, mentorship, benefits, tuition reimbursement, dependent care scholarships, vacation and time off, compensation, etc.

While “the simple act of paying positive attention to people has a great deal to do with productivity” (Tom Peters), you really need a strategic approach in order to ensure successful results.  Here is a high-level overview.

Retention Strategy Process

1. Identify key contributors
2. Evaluate key contributors’ retention risk
3. Determine key contributors’ motivational factors
4. Identify opportunities to celebrate wins
5. Identify opportunities to provide recognition
6. Review the current compensation structure
7. Formulate any necessary compensation structure changes
8. Develop a communication plan
9. Implement actions

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Reality Check

• Do your employees have an emotional commitment to your organization and goals?

 

• Would your employees agree that your company provides them with the information they feel is important in a way that is clear, easy to understand and keeps everyone involved?

 

• Have you set appropriate parameters and expectations for your employees as visible through daily management tasks and accountability?

 

• Do you have an easy process you can use to analyze your employee’s retention risk?

 

• Do you have the insight you need into determining the right compensation level for your employees?

 

• Are you aware of what motivates each of your employees individually?

If you answered NO to any of the questions above, want to understand employee engagement or motivation more thoroughly to help you achieve your desired business results, Who’s Your HR? can help!  I’m happy to answer questions, provide coaching, training, templates, and tools or even create customized solutions to help you motivate and engage your workforce to optimize their potential.

Who’s Your HR? is available to assist you with HR consulting, contract or project work.  Please review the Solutions and Service page or find my contact information in the menu to the left of this article.

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