Articles- Secrets to Employee Retention, by Robin Thompson


	Motivational speaker and author, Robin Thompson, works with organizations that want to

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Articles- Secrets

Secrets to Keeping
Good Employees
By: Robin Thompson, MS/TRS

Employee turnover is expensive. An employer can easily spend $100,000 in exit interviews, severance pay, hiring costs, and lost productivity while training the new hire.

Estimations on the turnover expenses of salaried-positions can run high: a journeyman machinist costs $102,796; an automobile company’s human resource manager $133,803; and a fast-food chain-store manager $21,931. Now add on the less obvious costs that come with loss of intellectual capital, decreased morale, increased employee stress, and negative reputation. The impact of these factors to a company’s profitability is significant

Intrinsic rewards retain employees

Retaining and motivating valuable employees requires employers to evaluate their situation and work environment. The extrinsic rewards are the most tangible—salaries, benefits, promotions—yet these incentives alone are not enough. Employees judge the quality of their job on the intrinsic satisfaction (the personal “reward” they reap from their work), and on whether they feel their work environment is supportive. These factors are powerful predictors of job satisfaction, commitment and loyalty, and retention. According to a 1997 survey, “The National Study of the Changing Workforce,” these characteristics are better predictors of productivity than salary and benefits, if the compensation package is competitive with the marketplace. In that survey, some 2,800 blue- and white- collar workers were questioned about their jobs.

Using intrinsic rewards to increase employee commitment and retention is achievable in any organization. While it is both an art and a science, it has basic components of human nature that are fundamental. When these intrinsic approaches are understood and ingrained in the company culture, productive employees remain.

Four building blocks need to be cultivated:
— Awareness
— Trust
— Spirit
— Accountability

Creating commitment Awareness is like maturity. It is recognizing and doing whatever it takes for the common good. It is valuing opinions, and looking for ways to make a situation better. Above all, it is self-knowledge of strengths and weaknesses, and having the confidence to participate without fear of failure. Unaware people continue to do what they have always done. Yet, they expect different results.

Teaching employees awareness in business means increasing their understanding in the following areas: profits and losses; the quality of work being done; and the needs of customers or team members. Employers who practice this create a workforce that will be engaged and committed. .

Rodel, Inc., an electronic industry supplier, planned for 12 percent growth and instead experienced a 50 percent increase. The strain of this growth spurt would have caused some organizations to snap. Instead, the staff remained enthusiastic and the shipping record remained almost perfect. “Our people have a deep sense of commitment and caring,” CEO Bill Budinger says. Rodel employees’ commitment increased because they knew their efforts were needed and that they were making a positive difference. Retaining employees like this makes for good business.

Taking risk Trust is built when people are honest with themselves and with others. According to William Bridges in the book, Managing Transitions, when people have a mutual trust, they are likely to progress. Bridges says that although the technique is easy to explain, it may not be as easy to put into action. Each individual can start by being trustworthy; this will create a trusting, loyal workforce.

Trust results from mutual respect and working relationships that are built over time. It provides a foundation for people to extend themselves further and reach for higher goals than they otherwise might. Since security is a basic human need, trust creates an environment where people will take risks. They may risk being vulnerable by sharing an idea or expressing their creativity. These “risks” lead to innovations or insights that can make the company more successful.

Waving a victory flag

Creating team spirit was exemplified in the recent win of the U.S. Women’s Soccer Team. Before winning the championship, many people did not know this team existed. After the victory, thousands of new fans were seen waving victory flags. In business, team spirit is crucial to success. Physician Sales and Service (PSS), a distributor of supplies for doctors’ offices, overcame a potentially disastrous situation. They built a business on extraordinary service that allowed the company to charge a premium. Then came health-care reform and the focus on price. To survive, the company had to become a low-cost provider while maintaining high-service levels. Most companies experience high turnover during similar stressful changes, but not PSS. No one left. They experienced one year of tough times and then rebounded to become the leader in the industry. The hardship galvanized employees toward a shared goal, rather than causing dissension. Their team spirit made these gains possible through mutual participation and effort.

Being accountable

Accountability is an employee’s opportunity to demonstrate their contribution to the company’s success. It represents a willingness to “step up to the plate” and let their presence be felt. When accountability is expected in work settings, employees assume behaviors necessary to make the organization stronger. Each person is accountable for his or her own success or lack thereof. Employees learn to take responsibility for what they do (e.g. functional tasks) and how they do it (e.g. service with a smile).

According to Morris Shechtman in his book, Working Without A Net, accountability provides an essential function: shape individuals as they grow, develop and form as responsible adults. When managers do not hold people accountable they are abandoning their employees.

These intrinsic rewards all play a big part in helping retain valued people. When pay and benefits are comparable to the market, it is the intangibles that make for a dedicated workforce. They also create substantial profit for an organization. Although turnover averages vary by industry—Disney at a low for theme parks at 15 percent, Internet companies as 28 percent, car dealerships at 60 percent—the dollars saved are substantial.

The intrinsic efforts of a company is the secret to creating a sound bottom line. Losing just 15 employees for every 100—at $100,000 per employee—is math that can make the bottom line of any company sink. Employees know the secret. Unleash their power!

Robin Thompson is a professional speaker, trainer, and the author oF "Know Stress to No Stress". She works with organizations that want to keep good employees and with meeting planners who want to put some fun into their next meeting or event.

For more information she can be contacted via
e-mail: speaker@RobinThompson.com
phone: (304) 763-3222