Employee retention is a hot business topic today. No longer do people stay at the same company for 25 years and collect the gold watch like in years past.
In fact, according to U.S. Bureau of Labor statistics, the average worker will have 12 jobs from age 18 to 48. That alone should tell managers that all the time they put into hiring, training and promoting may just be preparation for the employee’s next job – and chances are it will be somewhere else.
Employees have more bargaining power than ever before. Unemployment is relatively low, and social media makes a company’s employee-retention information public knowledge.
Factor in that a recent Gallup Poll shows that only 31 percent of employees are engaged at work, 51 percent are disengaged and 17.5 percent are actively disengaged. Translation: Less than one-third of employees are excited about their jobs. Glassdoor, a website where employees and former employees anonymously review companies and their management, says the average employee gives their company a C-plus (3.1 out of 5) when asked whether they would recommend their company to a friend. In other words, companies need to do a better job retaining their valuable employees.
Why do people leave companies in the first place? There are many reasons – changes in benefits, bosses and job responsibilities, difficult co-workers, unethical practices, poor leadership, lack of challenges and many more.
I happen to believe that employees leave managers; they don’t leave companies.
Taking action when your employees are seriously dissatisfied with your organization’s policies or decisions is a test of your leadership. A face-to-face discussion about grievances can clear the air, but you’ve got to be careful to prevent it from turning into an explosive gripe session. A productive meeting needs careful planning, so consider these suggestions:
n Be ready to listen without becoming defensive or arguing back.
n Limit the size. A group of 10-15 employees is large enough so people don’t feel exposed and singled out, but still small enough so everyone can participate.
n Assure privacy. Meet in a conference room where you won’t be overheard.
n Ask for input. State the problem as you’ve heard it and ask for everyone’s opinions and feedback. Promise that you won’t punish anyone for speaking out, and stick to your word.
n Respond honestly. Address each complaint. If you believe any issues are invalid, explain why but be willing to listen to other points of view.
n Follow up promptly. If you can’t resolve a problem immediately, promise that you will respond in a short, specific time.
n Thank the group. Express your sincere appreciation for their courage and honesty in bringing each issue to your attention. Re-emphasize your mutual goal of working together productively and efficiently so employees know you value their opinions.
That’s a good start, but keeping good employees is a long-term proposition.
The best strategies engage employees on the job with equitable and generous compensation and benefits.
Coach employees on how to influence, motivate and persuade people. They’ll be able to accomplish more, which will lead to greater job satisfaction.
Help them develop their leadership skills. When employees see a path to advancement, they won’t have to look elsewhere for better opportunities.
Give constant and immediate feedback. Tell employees what they’re doing right, and how they can improve. They’ll see that you’re paying attention and are committed to their success.
Encourage workers to suggest ideas and innovations, and take them seriously when they follow up. Recognize their contributions. Praise employees for their efforts, share credit as widely as possible and give their achievements the attention they deserve.
Mackay’s Moral: Solving employee turnover is easier when they own a piece of the pie.
Harvey Mackay is the author of the New York Times best-seller “Swim With the Sharks Without Being Eaten Alive.” He can be reached through his website, www.harveymackay.com.
