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Ever since downsizing became the best know euphemism in America, company loyalty has been a thing of the past. According to a survey conducted by The Bureau of National Affairs, employee turnover soared to its highest levels of the decade in 1997 and we don’t expect the 1998 numbers to be any better. The Bureau of Labor statistics reports average tenure for workers 25- to 34-years old has decreased from three to 2.8 years. And that looks like long-term employment compared to the 52 percent of 20- to 24-year-olds who stay at a job for less than one year. In today’s world, many employees find they can get better promotions, pay, and perks by changing employers. This is bad news because, in the promotional products industry, the only difference between you and your competition is your employees. In large part, your success hinges on their creativity and people-skills. Studies tell us that, just when your investment in an employee can start to pay off, they may decide to look for new challenges or greener pastures. Just when an exceptional employee has established strong customer relationships, knows the products, your systems, the industry, and the customers’ industries to a fare-thee-well – you just might hear them say "farewell." In light of this, what are you doing to try to keep your best people on board? A recent survey gives us some clues as to what we should be doing. This study of 5,500 people found the most important thing they look for in a job is "enjoying what they do." Next came "opportunity to use skills/abilities," followed by "opportunity for personal development." Benefits ranked fifth and "lots of money" was ninth. This is only one of dozens of recent surveys that tell us money isn’t everything to everyone. In fact, many are reporting that money isn’t everything to almost anyone anymore. While salaries and commissions need to be competitive, savvy employers are working to retain their best people by making sure those employees find their jobs enjoyable, personally rewarding, and fun. Not surprisingly, they’ve also discovered that, when employees are happy, profits go up. Some of the nation’s largest companies spent millions on exhaustive research into the link between people, profits, and motivation (another word for enjoying your job). Some of the results:
The evidence from these studies is so strong, the financial Accounting Standards Board may soon require firms to measure and disclose employee motivation as an intangible asset, just as important to investors as new contracts, buildings, or machinery. So, this seems straightforward enough. Happy people stay put and improve profitability. The problem is that employers and employees can’t seem to agree on what it is that makes employees happy. Two recently published studies make the point: Retention: What Employers Are Doing Here are the top eight ways 378 surveyed firms are trying to retain professional employees:
Retention: What Employees Say They Want What employees say is most important to them: #1 Opportunity to learn new skills #2 Coaching & feedback from boss #3 Type of work #4 Ability of top management #5 Recognition of a job well done #6 Respectful treatment #7 Training #8 Pay Manchester Partners conducted the research that documents what 378 employers report they’re doing to keep their best professionals on board. As we can see, money is at the top of the list. Now, let’s take a look on the other side of the fence. The study of what employees’ say they want was collected from more than 300 companies and a half-million employees over the past three years by The Hay Group. Did you notice where money is on the employees’ list? The analogy that comes to mind is the Type-A business tycoon. He’s so busy expanding his empire that he has no time for his wife and kids and tries to make up for it with money. Well, we’ve all seen the movie. They don’t want his money, they want his time. If pay is #1 on the employers’ list and #8 on the employees’, are we throwing money at the problem when all our people really want is some management attention and guidance? What employers are offering is the inverse of what employees say they want is because employers are looking at this as a turnover problem. Turnover is viewed as a facts and figures number problem. So, management tries to fix it with facts and figures solutions. Six of the eight employer offered remedies in the study are facts and figures responses. "Casual dress code" and "flexible hours" are the only two that aren’t. Employers need to realize turnover is not the problem – retention is. When we look at it as a retention problem, we’re forced to think more about the people involved and to try to find out what it takes to keep them happy and productive. This particular study says today’s workforce wants to learn new skills, interact closely with supervisors, enjoy their work, trust management, be respected, and recognized for work well done. While it does point us in the right direction, you’ll find that, for your particular employees, it’s a case of "different strokes for different folks." Some people want flex time, some do value pay above all else, some live for recognition, and some want tuition reimbursement. The good news is it’s easy to find out what your most valued people like about their jobs and how they could like them even more – just ask. They’d welcome the discussion. Have you ever thought about how much money you’ve invested in recruiting, screening, training, and paying your people? Now add to that the value of their combined experience if you can – it’s probably inestimable. The question is, how are you protecting this investment? If a competitor offered them more money, how many would leave? Where would that leave you? If people don’t want to work for you, nobody can stop them. So, if you want to retain your best employees, find out what motivates each of them and deliver what they need. When profitability improves, you’ll be real glad you did. |
