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Rewards, Retention
Employee motivation, positive employee morale, rewards and recognition are explored in these
resources. What creates motivated, contributing people? How do you maintain high employee morale
when people work long hours? How does your reward and recognition system contribute to or deflate
employee motivation, positive morale and retention? Answers are here.
1. Employee Engagement (19)
1. Employee Recognition (26)
1. Employee Retention (21)
1. Managers and Motivation (22)
1. Employee Surveys (13)
1. Success (27)
1. Quotations for Business and Work
1. Humor and Inspiration (44)
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want to be the chosen, valued employer. Find out how!
Managing Millennials
The millennials joining your workforce now were born between 1980 and 2000. Unlike the Gen-Xers
and the Boomers, the Millennials have developed work characteristics and tendencies from doting
parents, structured lives, and contact with diverse people. Learn more about millennials.
Promote Self-Discipline!
You can create a work environment in which people choose to practice self-discipline and thus,
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Employee Engagement
Employee engagement describes an employee work environment in which employees are motivated,
excited, thoroughly involved and engrossed in their work and contribution, and willing to offer their
discretionary energy to accomplish work goals. Find out more about how to create a work
environment that fosters employee engagement.
Employee Empowerment
Empowerment is the process of enabling or authorizing an individual to think, behave, take action,
and control work and decisionmaking in autonomous ways. It is the state of feeling self-empowered to
take control of one's own destiny. Empowerment rules as a development strategy. Learn more about
what empowerment is – and is not.
Employee Involvement
Employee involvement is creating an environment in which people have an impact on decisions and
actions that affect their jobs. Employee involvement is not the goal nor is it a tool, as practiced in
many organizations. Rather, employee involvement is a management and leadership philosophy about
how people are most enabled to contribute. Find out more about employee involvement.
Employee Morale
Employee morale describes the overall outlook, attitude, satisfaction, and confidence that employees
feel at work. When employees are positive about their work environment and believe that they can
meet their most important needs at work, employee morale is positive. Employee morale is defined by
the employee's outlook, optimism,...
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Employee Morale
Employee morale describes the overall outlook, attitude, satisfaction, and confidence that employees
feel at work. When employees are positive about their work environment and believe that they can
meet their most important needs at work, employee morale is positive. Employee morale is defined by
the employee's outlook, optimism,...
Employee Satisfaction
Employee satisfaction is the terminology used to describe whether employees are happy and
contented and fulfilling their desires and needs at work. Employee satisfaction is often measured by
anonymous surveys administered periodically that gauge employee satisfaction in areas such as
management and teamwork.
Passion Pays!
"People who are passionate about their work do a better job." I believe it! Check out Management
Guide, John Reh's take on being happy at work.
Filed In:
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Employee Surveys
Employee satisfaction surveys help employers measure and understand their employees' attitude,
opinions, motivation, and satisfaction. Other employee surveys measure training needs, job
satisfaction, communication, empowerment, and more. Use employee surveys to discover what your
employees think.
1. Employee Satisfaction (6)
Conduct a Simple Training Needs Assessment
Want to quickly learn the training needs of a group of employees who have similar jobs? Yet, you
don't want to develop and implement a survey, put the questions in a computer program, or run
analyses on demographic information you collect. This training needs assessment works best in small
to mid-sized organizations. It will give you a quick assessment of the training needs of an employee
group. This training needs assessment helps find common training programs for a group of
employees.
Employee Satisfaction
Employee satisfaction is the terminology used to describe whether employees are happy and
contented and fulfilling their desires and needs at work. Employee satisfaction is often measured by
anonymous surveys administered periodically that gauge employee satisfaction in areas such as
management and teamwork.
Model Definitions
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Historical Snapshot
In the earliest years that the fields of compensation and benefits were recognized as professions,
practice was based largely on formulas that served the entire employee population in an
organization. Salary structures were just that -- rigid and highly controlled -- and benefits
programs were designed as a one-size-fits-all answer to a homogenous work force.
In the 1970s and 1980s, organizations recognized that strategically designed compensation and
benefits programs could give them the edge in a rapidly changing environment. Organizations
were responding to:
• Global economic development and the emergence of multinational firms
• A much more competitive business environment
• Diversification of the work force to include workers who didn't fit the sole breadwinner, head-of-household
model of the '50s and '60s
• New government mandates related to employee benefits
• Rapidly rising benefits costs that prompted flexibility in programs to reduce costs.
Suddenly, the relatively simple compensation and benefits programs of the past were requiring
consideration of their strategic impact and relationship to one another. Integration became a key,
and compensation and benefits professionals emerged as critical strategic partners in their
organizations' leadership -- a position still occupied by leaders in the field today.
During the 1990s, companies experienced unprecedented challenges including:
• Dramatic changes in the workplace, including increased awareness of conflicts caused by family, home and
work demands.
• Workforce demographic changes that challenged the traditional working-father, stay-at-home-mother model
of previous decades.
• Fewer resources available for pay increases.
• Astronomical increases in health-care costs in some countries.
• Rapid decline of defined-benefit pension plans as a financially viable retirement model.
• Tremendous advances in technology and the emergence of new business opportunities.
• Geographic movement of many manufacturing and service roles.
• Advancement of pay-for-performance practices.
• Unprecedented mergers, acquisitions and global competition.
Collectively, these forces and others caused business leaders to scramble for ways to improve
efficiency, effectiveness and marketplace viability. HR professionals -- particularly those
specializing in compensation and benefits -- were challenged to contain costs and contribute to
improved business results. These professionals were at the forefront of designing and
implementing programmatic changes that have shaped the next generation of compensation and
benefits. The results have included improved alignment of pay and performance, tighter controls
on benefits costs, and more relevant and valued employee rewards programs.
Forward-thinking professionals realized that programmatic advances would not be enough.
While program efficiencies and cost controls have been pivotal for survival, many organizations
have recognized that an integrated and enriched "value exchange" between an employer and its
employees can accelerate velocity and success.
The concept of total rewards emerged in the 1990s as a new way of thinking about the
deployment of compensation and benefits, combined with the other tangible and intangible ways
that companies seek to attract, motivate and retain employees. Flexible companies and start-ups
were able to deploy these concepts rapidly, while other organizations have struggled with
entrenched organizational structures, practices and culture that have slowed or prevented
progress.
During the past decade, various total rewards models have been published. While each approach
presents a unique point of view, all of the models recognize the importance of leveraging
multiple programs, practices and cultural dynamics to satisfy and engage the best employees,
contributing to improved business performance and results.
Increasingly, it has become clear that the battle for talent involves much more than highly
effective, strategically designed compensation and benefits programs. While these programs
remain critical, the most successful companies have realized that they must take a much broader
look at the factors involved in attraction, motivation and retention. And they must deploy all of
the factors -- including compensation, benefits, work-life, performance and recognition and
development and career opportunities -- to their strategic advantage.
WorldatWork Total Rewards Model
As the association representing the professions comprising total rewards, WorldatWork has
served as a focal point for intellectual-capital development and dialogue about this topic. In
2000, after facilitating discussion with leading thinkers in the field, WorldatWork introduced a
total rewards framework intended to advance the concept and help practitioners think and
execute in new ways. The model focused on three elements:
• Compensation
• Benefits
• The Work Experience
○ Acknowledgement
○ Balance (of work and
life)
○ Culture
○ Development
(career/professional)
○ Environment
(workplace)
Up to this point, the association had focused solely on compensation and benefits. Yet,
specialists and generalists alike agreed that compensation and benefits -- while foundational and
representing the lion's share of human-capital costs -- cannot be fully effective unless they are
part of an integrated strategy of other programs and practices to attract, motivate and retain top
talent. Thus "the work experience" aspect of the first WorldatWork total rewards model included
aspects of employment that may be programmatic or just part of the overall experience of
working. For instance, recognition (acknowledgement) may be part of a formal rewards program
or may be as simple as a thank-you from the boss or a co-worker. Workplace flexibility (part of
work-life) may manifest itself as a formal telework program or as having a culture and practices
that embrace work-life flexibility.
As companies were exposed to total rewards, understanding of the concept advanced rapidly. In
fact, the concept has become the practice in many companies. While the term didn't even exist a
decade ago, today departments and jobs include the term. A September 2005 survey of
WorldatWork members revealed that more than 90% of respondents use the terms "total
rewards," "total compensation" or "compensation and benefits" to describe the collective
strategies deployed by their companies to attract, motivate and retain the talent needed to be
successful.
During the past several years, the concept of total rewards has advanced considerably.
Practitioners have experienced the power of leveraging multiple factors to attract, motivate and
retain talent; high-performing companies realize that their proprietary total rewards programs
allow them to excel in new ways. At the same time, human resource professionals, consulting
firms, service providers and academic institutions have made significant contributions to our
understanding of total rewards.
Total Rewards Today
From 2000 to 2005, the bodies of knowledge associated with total rewards became more robust
as practitioners experienced the power of integrated strategies. Organizational and departmental
structure changes allowed for better integration, and professional understanding improved as
well. Advanced literature, research and case studies accelerated visibility for total rewards
beyond the HR profession, garnering notice from line managers and, indeed, the C-suite.
Given this advanced thinking and the increased importance of total rewards as a core business
strategy, WorldatWork convened teams of volunteers -- leading professionals in the field -- to
create an enhanced view of total rewards. The result: a comprehensive model that demonstrates
the context, components and contributions of total rewards as part of an integrated business
strategy.
Total Rewards
Total rewards is the monetary and non-monetary return provided to
employees in exchange for their time, talents, efforts and results. It involves
the deliberate integration of five key elements that effectively attract,
motivate and retain the talent required to achieve desired business results.
The five key rewards elements are:
• Compensation
• Benefits
• Work-life
• Performance and Recognition
• Development and Career Opportunities
Total rewards strategy is the art of combining these five elements into
tailored packages designed to achieve optimal motivation. For a total
rewards strategy to be successful, employees must perceive monetary and
non-monetary rewards as valuable.
Compensation
Pay provided by an employer to an employee for services rendered (i.e.,
time, effort and skill). Compensation comprises four core elements:
• Fixed pay -- Also known as "base pay," fixed pay is nondiscretionary
compensation that does not vary according to performance or results achieved. It
usually is determined by the organization's pay philosophy and structure.
• Variable pay -- Also known as "pay at risk," variable pay changes directly with the
level of performance or results achieved. It is a one-time payment that must be re-
established and re-earned each performance period.
• Short-term incentive pay - A form of variable pay, short-term incentive pay is
designed to focus and reward performance over a period of one-year or less.
• Long-term incentive pay -- A form of variable pay, long-term incentive pay is
designed to focus and reward performance over a period longer than one year.
Typical forms include stock options, restricted stock, performance shares,
performance units and cash.
Benefits
Programs an employer uses to supplement the cash compensation that
employees receive.
• These programs are designed to protect the employee and his or her
family from financial risks and can be categorized into the following three
elements:
• Social Insurance
○ Unemployment
○ Workers' compensation
○ Social Security
○ Disability (occupational)
• Group Insurance
○ Medical
○ Dental
○ Vision
○ Prescription drug
○ Mental health
○ Life insurance
○ AD&D insurance
○ Disability
○ Retirement
○ Savings
• Pay for Time Not Worked -- These programs are designed to protect the
employee's income flow when not actively engaged at work.
○ At work (breaks, clean-up time, uniform changing time)
○ Away from work (vacation, company holidays, personal days).
Work-Life
A specific set of organizational practices, policies, programs, plus a
philosophy, which actively supports efforts to help employees achieve
success at both work and home. There are seven major categories of
organizational support for work-life effectiveness in the workplace. These
categories encompass compensation, benefits and other HR programs. In
combination, they address the key intersections of the worker, his or her
family, the community and the workplace. The seven major categories are:
• Workplace flexibility
• Paid and unpaid time off
• Health and well-being
• Caring for dependents
• Financial support
• Community involvement
• Management involvement/culture change interventions.
So my dear friends in the IT sector, can you help me out in this project of mine by
stating the problems that you have faced in implementing Rewards and
recognitions strategy?
Going by what little i know abt the IT industry and R&R scheme as such, plz don
take my suggetions too seriously but atleast u can give a thought.....rite? k...here
goes.....
See first thing that u need to c in ur oeganisation is if the iorganisation has a sound
working organisation system..usually in IT we follow team or group system of
organising work, so if that's how it is then more than just implementation of
quantitive R&R scheme, u need a qualitative one w.r.t. team skills, behaviour,
motivation, leadership qualities etc etc...(the list is long).
Not that u shd do qualitative only but do include this aspect and when u're deciding
to find out a system of quantitative basis, u could judge ppl from the point of the
quality of work, no of fruitful hrs at work, amt of work, dedication to work,
innovative skills and new ideas are very important in IT and need high weightage
and all the other usual things that are there in any R&R scheme.
As for the part of quantivie to qualitative u can wieght them according to your
needs, though i would prescribe 70-30 given the general nature of organisational
structure.
I think this should be useefull to you..and remember in IT and in HR all u need is
innovation and better perfection.....so put on ur thinking caps and think as to what
the people in ur organisations require and make out a plan of implementation w.r.t.
how ur HR department looks or gives importance to this....best of luck.
Pratik
09830418701
Employee Motivation is a widely practiced exercise today across all corporate sectors regardless
of their size of being either big or small. Just like the psychological need for any individual to be
appreciated over his efforts, the same idea of thought stems the need for rewards and recognition
in order to increase the work drive of an employee and increase his efficiency and seriousness
towards work.
Rewards and Recognition could not be a priced possession tangibly, but it rather plays a
significant role in shaping the mental frame of an employee and attuning him to the goals of the
organization in order to meet their set plans and targets to achieve success.
Every human being likes to be appreciated, and when an employer or a boss shows recognition
or acknowledges the efforts of an employee, it encourages them to become more self-motivated
backed by a will to contribute to the goals of the business without a reminder to do so. They tend
to develop an emotion of a personal goal with the success of the organization, thereby displaying
a better performance graph and increased participation, along with self initiative
towards a project.
Apart from self motivation and increased efficiency to perform well; the business models
understand the scope of Employee Motivation from another angle too. Rewards and Recognition
foster a feeling of competition, thereby taking the title as a certificate of their good work. This
positive certificate would want to be achieved by any serious worker and he or she would strive
for the same. A feeling of competition among the employees fosters an urge to be better than the
rest, and many times break the paradigms and evolve as better than the best.
All this contributes to higher efficiency and performance drive imbibed in the spirit of the
employee. Recognition and reward programs today are widely practiced by many corporate
firms, which leads to a lot of happy faces and some more satisfied employees.
Work Satisfaction is of utmost importance to the phenomenon of Employee Retention. Most of
the employees though may be well engaged in a firm, but that would not necessarily mean that
they are hundred percent satisfied in their positions. Therefore, apart from increased work
efficiency and fostering a feeling of competition among employees, the motivational aspect of
reward and recognition plays an instrument in bringing about employee retention. Today, with
the multiplicity of options in the job market, job switches are very common. Hence, the only key
to ensure maximum longevity of an individual within the company is by ensuring that the worker
is duly satisfied in the firm.
Over here, the human resource executive plays a vital role in understanding the potential of an
employee as against his work track record, which decides who is to be motivated and in what
form.
Employee Motivation can arise from psychological to financial increment. It is a human resource
executive who has to identify individually the need of the worker.
There can be appraisals, to recognition to elevating a person from his designation to a better one
by means of promotion, merit pay etc. All this depends from case to case, depending on how the
employee has been performing and his potential showed along the line to determine how the
person has to be recognized or rewarded on the type of work quality displayed over a period of
time.
Therefore, it is the machinery of human resource which identifies the motivational factor of an
individual and facilitates efficiency in the work by taking care of the mental as well as other
professional needs of the employee.
Similar Posts
• Employee Motivation Programs Have Multifarious Benefits
• Employee Engagement: Fostering Longevity and Efficiency
• Overview of Employee Appraisal Systems
• Machinery of any Organization: Human Resource
• How to Strike a Friendly Chord?
worked diligently. John being happy with the Tom’s work, rewarded him
with a cash prize of $ 1000 (which was a significant amount ), in anticipation that Tom will be
motivated to perform better. He also had lots of plans for Tom in the back of his mind. Both Tom
and John seemed happy and thought that they did a good job.
Contrary to John’s belief Tom submitted his resignation within a much shorter span. During his
exit interview, Tom did not state any specific reason for his resignation too (although, it was
found later that he left for a better compensation package). His resignation came as a shock to
John, who was genuinely interested in retaining good employees and did all what he could do to
ensure it.
‘Where was the mistake?’, questioned the CEO to himself and to me too.
As I did not know much about the employee, it was inappropriate for me to come to any
conclusion. But the question always remained behind the back of my mind. I always believed
that it had something to do with appropriate compensation planning and rewards.
Here is a relevant a research paper by Rick Garlick, Ph.D., Director of Consulting and
Strategic Implementation, Maritz Research titled ‘Individual Differences in Reward
Practices‘.
The objective of this research was to find out what motivates different employees and to define
some general categories of employees with specific reward or compensation aspirations. Here is
an abstract of the research.
While everyone understands intuitively that we are not all motivated equally by the same
rewards, you might not know it by the way many companies manage their incentive programs.
Many times, human resource managers assume that what is rewarding to them will be rewarding
to others as well, which may be a false presumption.
As Maritz Inc. was interested in understanding how the workforce is segmented on its reward
preferences, it conducted an online Maritz® Poll of 1,003 North Americans. An analysis of
participants’ recognition preferences identified six distinct reward profiles, along with some of
the more common characteristics of people that were most likely to fall within each ‘reward’
segment.
Reward Profiles
Awards Seekers (22% of the general population, rounded to the nearest whole number):
Awards Seekers want incentives that have both monetary and trophy value. These individuals are
highly motivated by gift cards and travel awards. Awards Seekers also place higher value than
most others on status awards. They are far less motivated by things that might take time away
from their normal routines such as the opportunity to mentor other employees, the opportunity to
work with people outside their own area, or the opportunity to take on particularly challenging
new projects.
Nesters (20%): This group was defined by what they found de-motivating as
much as anything else. Nesters were turned off by incentives that took them away from home.
Travel awards and the opportunity to attend conferences were least appealing to this group.
Nesters were far more likely to enjoy days off, flexible scheduling, and a reward of a meal with
their family than those in the other segments.
Bottom Liners (19%): In many ways, Bottom Liners resemble Awards Seekers in that they are
extrinsically motivated. The difference between the two is that Bottom Liners have less concern
about trophy or award value and are really only concerned about the monetary value of rewards.
This group places the highest importance on receiving a cash bonus. They also value awards,
such as ‘point programs’ that they can accumulate. They place very little emphasis on receiving
direct praise or recognition in any form. This group had the highest proportion of females (59%).
Freedom Yearners (17%): Freedom Yearners are less materially motivated, with
limited interest in things like gift cards and cumulative award programs. Freedom Yearners are
best rewarded by giving them flexibility. This includes offering flexible hours, the freedom to
choose how to best achieve their goals and the ability to choose interesting and challenging
projects. Freedom Yearners are intrinsically motivated and work best when simply left alone.
Define the outcomes you want them to achieve, but allow them to find their own best path to
accomplishing their goals.
Praise Cravers (16%): These individuals value any type of praise more than any other segment.
This praise may be given verbally, written, formal or informally given by peers. These people
have a higher desire to have their work acknowledged, with or without an accompanying award
of monetary value. These people also have the least interest in taking days off or flexible
scheduling, suggesting that they achieve a great deal of personal significance from a job well
done at work that is recognized accordingly.
Upward Movers (8%): Upward Movers are undoubtedly the most satisfied and committed
among all of the employee segments. They are the least interested in cash bonuses, days off and
flexible scheduling. These people love their jobs and want to move up within their companies.
Among all of the segments, this group places the highest importance on status awards, the
opportunity to mentor other employees, and the opportunity to work with people outside their
own areas.
The research demonstrated that meaningless rewards and recognition is about the same as
nothing at all. Since companies make a significant investment in recognition programs, it
behooves them to gain as complete understanding of their employee populations as possible to
facilitate the best results for their investments. Segmenting employees based on
reward/recognition profiling and targeting to specific preferences is a way to make sure that their
time, money and effort is wisely spent.
Defining appropriate compensation to employees is one of the most important tasks of an HR
Manager and the management team because it plays a critical role in retaining talented
employees. On basis of the above research and other observations the following points are
important while planning employee compensation:
• Compensation offered should fit the reward profile of the employee. To
The program contains four modules designed in such a way that the candidate
being trained is equipped with all the knowledge and practical competencies
required to
Need and Importance of Employee Retention:
All the companies are planning to increase their turnover every moment of time.
While in all this workout of increasing the turnover they forget about their loss incurred by
the resignation of employees and the expenses of hiring new employees (Hiring Cost,
Training Cost, Productivity Loss etc.). This hiring of a new employee normally costs around
35% or more of the average employee salary. For example- let us consider average salary of
an employee per year as Rs.20, 000, and then the cost of hiring a new employee and other
expenses come around Rs.7, 000. If you have 2 employees resigning per month the cost
comes to Rs.14, 000 and taking the same for 12 months comes to around Rs.168, 000,
which is a direct loss from the turnover of the company. And after all this there is always a
risk of getting a right employee for the right position with a right attitude.
For all these and many other reasons you need to retain your employees. For
retaining your employees, you need to understand the requirements of the employees and
at the same time should make them clear about the expectations of the company from
them. It’s a general human tendency that each human being thinks himself as important
and expects the same from the other side, so the company management should make their
employees accountable for their respective jobs and make them feel that they are very
important for the smooth processing of that process(At the same time create a backup for
him). Care and importance are two things of which every human being is mad of.
4. Employee Referral Plan- You can introduce Employee Referral Plan. This will
reduce your cost (charges of external consultants and searching agencies) of hiring a new
employee and up to an extent you can rely on this new resource. On every successful
referral, employee can be given a referral bonus after 6 or 9 months of continuous working
of the new employee as well as the existing employee. By this you can get a new employee
at a reduced cost as well as are retaining the existing one for a longer period of time.
5. Loyalty Bonus- You can introduce a Loyalty Bonus Program in which you can
reward your employee after a successful completion of a specified period of time. This can
be in the form of Money or Position. This will encourage the fellow employees as well
whether they are interested in money or position, they will feel fascinated.
6. Giving a voice to the Knowledge Banks- First of all you should try to
retain your workforce intact, as they are the intellectual asset of the company. And above
that you can’t afford losing your knowledge banks. These are the people who stabilize the
process. You can involve them in some of the decisions.
7. Employee Recreation- You should also let your employees enjoy in a light
mood. You can take your employees to a trip or for an outing every year or bi-yearly. You
can make use of this trip as well. You can start this trip with an opening note about the
management views and plans, strategies etc. At the same time you can involve your top
management into some of the fun activities as this will make feel the employees that they
are very close to the management and everybody is same.
8. Gifts at some Occasions- You can give some gifts at the time of one or two
festivals to the employees making them feel good and understand that the management is
concerned about them.
9. Accountability- You should make each employee accountable so that he can also
feel that he is as important as his manager. If he/she will be filled with this sense, he/she will
seldom think of leaving the company.
For a company, the workforce is like an intellectual property, both in terms of skills
and money. A trained and content workforce can lead a company to new heights while a
opposite one can hamper it badly. So, every resignation saved is every dollar earned.
Contributing Writer: Rohit Minton is working as Assistant HR in the Group HR
department of the Amicorp group. He has done his bachelors in Spanish Language and is
now pursuing his MBA in HRD.
Employee Retention has never been more important than it is right now. The costs of employee
turnover are skyrocketing and seriously impact an organization's bottom line.
Given the importance of retaining employees in today's work environment we've made available the
following employee retention articles to give your organization a helping hand in curbing unwanted
employee turnover.
If you have questions about our highly effective employee retention programs or would like to discuss
some of the issues your organization is facing with employee turnover give us a call today, we can help!
1. Employee Job Fit - This is by far the single largest cause of poor
employee morale. It makes perfect sense if
you think about it... If an employee is not cut
out for the job, either based on their core
behavioral style, what motivates them, or
their unique set of personal skills and
talents, their performance will suffer, they will
become frustrated, and morale will dwindle.
4. Passion for the Work - Passion for the work one performs leads to
engagement in the work. Employee engagement is a key factor in
boosting employee morale. One of the best ways to ensure that your
employees are passionate about their job is to align their position with
their unique behavioral style (introverted/extroverted, people/task
orientation), their motivating values (money, power, knowledge, helping
others, etc.), and their soft skills (empathy, responsibility, leadership
ability etc). Again, this goes back to job fit - an employee whose
personality is in alignment with the needs of the job is much more likely be
passionate about their work and experience higher levels of employee
morale.
Get the right people on the bus - in his book, Good to Great, Jim
Collins talks about the importance of having the right talent on the
organizational bus. Hiring individuals who are truly fit to succeed in the
position for hire will dramatically increase the chances of that employee
being satisfied with his or her work and remaining with the company for an
extended period of time.
Recognize team members for their hard work and let them know
they are appreciated - this can be one of the single greatest factors
affecting employee retention. Everybody, in all levels of an organization,
wants to know that their efforts are appreciated and recognized. This
can be as simple or as extravagant as a supervisor may desire. Often
time a short e-mail or quickly stopping by a team member's desk and
saying "thanks" can do wonder for morale. Other options might include a
mention in the company newsletter for outstanding performance or gift
certificates to a restaurant or movie theatre - the possibilities are endless.
Before you can start to combat the costs of employee turnover, you must
be aware of what these cost are and what they entail. There are, of
course, some obvious costs that come quickly to mind, but there are also
numerous other costs that you may have never considered that can have
a serious impact on your bottom line.
Consider this: if your firm has a turnover rate of 25% (about the national
average) and employs 40 employees each earning $25,000 annually, your
costs of turning over 10 of these employees over the course of a year will
be at least $125,000! What could you do with an additional $100,000+ in
resources?
Severance pay can also be a huge part of employee turnover costs. This
is especially true with highly skilled employees and high-level
management. These are wages on which you will never see any return on
you investment!
The costs of recruitment: Each time an employee is lost the hiring and
selection cycle must start again. These costs can be significant:
advertising costs to announce your job opening to the masses, cost of
recruitment agencies, background checks, reference checks, drug testing,
cost of overtime pay, temporary help and much more.
Hiring costs: Once you've made a hiring decision, the costs of turnover
don't stop, but rather continue. Sign on bonuses, relocation costs, and any
increases in salary level necessary to attract new talent all add up quickly.
The time spent by HR managers to onboard and train the new employee
can also be costly and unnecessary. These are all tangible costs that
could be avoided with a better employee retention strategy.
In a previous article we identified some useful tips to help improve employee retention in your
organization. Given the importance of retaining your best employees, we have compiled another list of 10
important factors that can impact employee retention in your organization.
Shorten the feedback loop - do not wait for an annual performance review or evaluation to come due
to give feedback on how an employee is performing. Most team members enjoy frequent feedback about
how they are performing. Shortening the feedback loop will help to keep performance levels high and will
reinforce positive behavior. Feedback does not necessarily need to be scheduled or highly structured;
simply stopping by a team member's desk and letting them know they are doing a good job on a current
project can do wonders for employee morale and help to increase retention.
Offer a competitive compensation package - any team member wants to
feel that he or she is being paid appropriately and fairly for the work he or she
does. Be sure to research what other companies and organizations are offering
in terms of salary and benefits. It is also important to research what the regional
and national compensation averages are for that particular position. You can be
sure that if your compensation package is not competitive, team members will
find this out and look for employers who are willing to offer more competitive
compensation packages.
Beware of burnout - staff adequately to reduce the amount of unwanted overtime a team member
must work. Some employees enjoy the extra money that accompanies overtime hours, while others would
rather spend their time with their families or doing other activities they enjoy. Burnout can be a leading
cause of turnover. Recognize the warning signs and give employees a break when they need it.
Provide opportunities for professional development and growth - offer opportunities for team
members to acquire new skills and knowledge useful to the organization. If an employee appears to be
bored or burned out in a current position offer to train this individual in another facet of the organization
where he or she would be a good fit. Nobody wants to feel stuck in their position will no possibility for
advancement or new opportunities.
Management must take the time to get to know team members - it's
not a big surprise that one of the greatest complaints that employees
express in exit interviews is a feeling that management didn't know they
existed. Nobody wants to feel like just another spoke in a big wheel.
Managers are very busy - everybody is busy, but it is crucial that managers
and supervisors take the time get to know the team members who work
under them. Learn and remember a team member's name, what skills and
talents they bring to the table, and what their business interests are. The time spent by management
getting to know team members is well invested and can eliminate the headaches caused by having to
continually hire and re-train new employees.
Provide the tools and training an employee needs to succeed - nothing can be more frustrating to
an employee than a lack of training or the proper tools to successfully complete his or her duties. You
wouldn't try to build a house without a hammer, so why should an office job be any different? Providing a
team member with the tools and training she needs to be successful shows a commitment and
investment in that employee and will encourage the team member to stay with the organization.
Make use of a team member's talents, skills, and abilities - all team members have knowledge,
skills, and abilities that aren't directly related to their job description, but are still useful to an organization.
Utilizing a team member's talents in areas other than their current position will indicate to an employee
that management appreciates and recognizes all that an employee has to offer to the organization. This
can also provide work variety and helps to break up the everyday grind of work.
Never threaten a team member's job or income - While threatening an employee with termination
or demotion might seem like a surefire way to get the results needed from him or her, doing so will likely
cause the employee to leave the organization. Put yourself in the employee's shoes, what is the first thing
you would do if your job was threatened? Odds are you would probably update your resume and start
checking for open job postings expecting the worst. If a team member's performance is not what you had
hoped it would be, work with that team member on ways to improve his performance, saving termination
only as a last resort.
Take some time and seriously evaluate what your organization is doing to encourage a high retention
workforce. Having a seasoned and well trained workforce can deliver a competitive advantage that is
difficult to replicate. The best part is most of your efforts to retain your employees come free or with little
charge and offer huge returns on a manger's investment in time and resources.
At The Rainmaker Group we are committed to helping organizations achieve a high retention workforce
where team members truly enjoy coming to work each day. We can help your organization develop the
strategies and programs to make this happen. Give us a shout today, we'd love to hear from you!
• Send a thank you card or e-card. Also photocopy the thank you
and document the reason for the recognition in the employee's
file. Let the employee know you did this - it will let her know that
her hard work will not be forgotten.
• Movie tickets, gift certificates, or an engraved gift are excellent
rewards for an employee who has excelled or put in the extra
effort to make a project happen.
• Know how to recognize your staff. Not all staff members want to
be singled out at a gathering of hundreds of fellow team
members, while for others it would make their week. The
approach to recognizing team members can vary greatly by
generational cohort. You might seriously embarrass a baby
boomer by having them stand up in front a group of their peers
and discuss their recent success, while a Gen X-er will relish this
opportunity.
Our answer is very simple. Begin with hiring the right employee.
I know. We hear it all the time. "People leave people, not jobs."
The reality typically is the employee probably doesn't fit the job. Or the
boss doesn't understand how to motivate and reward the employee.
Why is the boss really "bad?" The boss is "bad" because they expect the
employee to perform - they expect the employee to do their job. But the
problem is - the employee doesn't fit the job. The employee can't do the
job from a behavior, values, or personal talent perspective so the boss
puts their attention on their employee's inability to do that job. In other
words, the boss focuses on the employee and what they aren't doing. We
call this "the doom loop."
Step Three - Boss tries to help the employee or skirts the issue until
someone else notices.
Step Seven - Boss wishes employee would leave while employee wishes
boss would leave them alone.
Step Nine - Employee leaves and leaves angry - spoiling the morale of
the team.
The result of a hiring mistake? Well - I wish it
were just limited to the costs associated with
hiring. The real cost of poor Employee
Selection are found in poor team morale and
low productivity. After all... "Bad employees"
don't leave quietly.
What you really need is someone to do the job well. If the job could talk,
what would it say?
What to do...
Are you sometimes more excited to see your dog than people in your life
including family members?
On the other hand, Boo loves my wife unconditionally and she loves him
back.
Despite having all the toys and chew things he could desire Boo chews on
stuff that is important to me and my wife. Yet because Boo is such an
amazing "brown-noser", she forgives him. How can she not forgive
something (or someone) as cute and cuddly as Boo who dishes out
unconditional love all the time? I don't find his "brown-nosing" to be
effective so it doesn't work for me. I want performance!
Give us a shout, we're here to help and would love to hear from you!
Stop! Before you rush to send out a scorching e-mail to everyone in the
office warning of the repercussions for office gambling and using company
time to get in on the March Madness fever you should know that there is
an upside. Office pools and all that chatter about college basketball can
actually encourage camaraderie and help to boost employee morale in
your organization. The key is getting March Madness to work for your
organization and its team members.
Try as you may, but it is highly improbable that anybody can stop the
March Madness bug from going around the workplace. It is inevitable that
somebody will be filling out tournament brackets during work hours. Sure
monitoring worker's online activities and threatening termination for
anyone participating in office pools or online tournament brackets is one
option to ensuring your organization stays productive during the coming
weeks.
However think of the time and effort this would take to enforce, the high
costs of employee turnover associated with terminating those who
break the rules and recruiting new team members to take their place, not
to mention the devastating effects this could have on organizational
morale. Perhaps there is a better solution.
Bill gets to the office on Monday morning after a nice weekend with his
family and sees that you and two other superiors of his have sent him 5
seemingly important e-mails over the weekend. Bill starts his Monday
morning off in a frenzy to catch up on the work he now feels behind with.
Right away his week has started off stressful.
By the end of the week Bill feels like he has taken care of all his
necessary business for the week and is looking forward to another
relaxing weekend with his family. But in the back of his mind there is now
a lingering doubt: Did I forget to do something important on Friday? Is that
report due on Monday morning first thing, or in the afternoon as usual.
Before Bill knows what he is doing he has logged on and is checking his
work e-mail on Saturday afternoon just to make sure he didn't forget
anything important or something hasn't came up at the last minute.
Of course Bill receives the two or so "important" e-mails you sent him that
morning. In no time Bill has logged onto your company intranet and is
mining some data in one of the company's databases. Before Bill realizes
what has happened, his Saturday afternoon is shot and he has missed his
alma mater's big football game. He quietly curses out his employer and
gets off the computer feeling a little cheated out of his weekend.
Bill gathers up his family and takes them out to eat, a little grumpier than
before and with work still on his mind. Monday comes around, a couple
more "important" e-mails received over the weekend and another hectic
start to the week.
Not surprisingly this has an effect on those around Bill. Everyone is a little
less excited about work each day and even go so far as to avoid Bill at
times. In no time the stress has become too much for bill and he wisely
listens to his wife's advises and "quits that damned job."
Certainly this was not the outcome Bill's boss had anticipated when he
sent that first e-mail on Saturday morning. Nor can one e-mail be blamed
for these events. Rather it was a snowball effect that gained more and
more mass each time Bill gave up personal time to attend to work matters.
If you are in the habit of sending e-mails or worse making phone calls to
employees on the weekends, stop. Your employees need the time away
from work to relax and rejuvenate before another hard week of work. If
you simply cannot find the time to communicate with your employees
during the week and must send e-mail on a weekend, be sure to let your
employees know that they are in no way obligated to respond and attend
to work matters during their personal time.
Respecting you employees' need for balance between work and their
personal life can go a long way in retaining talented employees and
reducing turnover costs. Although the story about Bill is fictional, I can
guarantee that numerous real life stories have taken place with surprising
parallels. Don't drive your best employees away by burning them out and
invading their personal time!
The reasons that employers score poorly are varied and many:
• 31% said their supervisor gave them the "silent treatment" during
the past year
How many employees have you lost due to poor manager - employee
relationships?
Poor managers on the other hand lead by fear, mistrust, and deceit.
Employees who cannot adapt to this environment are likely to defect, and
with good reason. Those who do stay are often unhappy with their work
environment, or worse adapt to and reinforce this self-perpetuating
culture. Some of these employees will eventually move on to
management positions themselves and continue the cycle of poor
managers and less than stellar results.
You might be throwing money out the window trying to retain unhappy
employees with bonuses, work perks, and additional salary when the root
of the problem is contempt for the supervisor he or she reports to. How
much money could you save with better managers and happier
employees???
The problem is clear, and a solution at hand: hire and retain better
managers who in turn retain better employees who are then able become
strong and effective managers. Sounds good on paper right? But how do
you get started?
These assessment tools can help to identify which individuals are fit or
unfit for leadership roles in your organization. Our assessments can help
to raise potential red flags during the hiring and selection process. For
example does the candidate desire power within your company because
he or she truly believes he can effectively lead others for the betterment of
the company, or does he or she desire organization power as a means to
exert his or her will on subordinates for their own personal benefit.
While this certainly has an impact on the individuals who move from job to
job in search of their calling, it also has an impact on the organizations
that employ these individuals in pursuit of their life's calling. Unfortunately
these organizations get stuck paying the high costs associated with
undesirable employee turnover. These costs include hard costs such as
recruiting costs, time spent interviewing new team members, training and
orientation costs, as well as the soft costs such as lost productivity,
reduced morale, missed opportunities, and a diminished customer
experience and goodwill. When figuring in all the associated employee
turnover costs, turning over one employee can
easily set an organization back 150% of that
employee's annual salary and benefits.
My first job was as a bus boy at a local buffet style diner where my duties
were to go from table to table and clear off the dirty dishes and trash left
behind by guests and prepare the table for the next party. Within an hour
of my first day on the job I decided I hated it and was going to quit as soon
as possible. Granted restaurants are notorious for having a revolving door
of employment, but I think you get my point.
If I had been given the opportunity to follow a bus boy for an hour I would
have quickly self selected myself out of the candidate pool. I think this is
the case for most positions that people are unfamiliar with or unsure
about. A short period of job shadowing provides a candid insight into what
the position is like and helps a candidate make an informed career
decision.
Take some time and seriously evaluate how your organization uses
internships and job shadowing opportunities in its hiring and selection
process. You might be missing a golden opportunity to improve the level
of employee retention in your organization and not even realize it.
I asked her what her gut instinct told her to do and her reply was, "Let him
go..."
She went on to explain that she had properly trained this individual and
had given him opportunity after opportunity to improve his performance
and had even involved other managers in an effort to improve his
performance.
At this point I asked her how much time she spent each day dealing with
issues related to this individual's performance. She quickly replied, "At
least an hour... sometimes two..."
Doing some quick mental math I asked her, "What could you do with that
one hour a day - twenty hours a month, six weeks a year - that were spent
addressing this individual's performance issues if a high performer were
hired to replace him?"
Her expression went blank and after some time she finally broke the
silence, "Wow, I never thought of it that way. That is a lot of time to spend
dealing with this individual. I hate to let him go, but..."
I can't help but think how much retaining this individual is costing her
organization and how many opportunities were missed by keeping this
individual on her organization's bus longer than necessary.
The truth is that the underperforming team member likely realized that he
was doing poorly in the job and just as his manager lacked the courage to
let him go, he too lacked the courage to leave on his own accord and find
more inspiring work elsewhere.
The question must be asked... How long does one allow a "problem
employee" to hang on until he or she is let go? A month? Three months?
A year? In my opinion all are too long.
As a manager and leader you have a moral obligation to see that the right
people are in the right jobs within your organization and that those
individuals who are not performing up to expectations are let go to find
more inspiring employment elsewhere. To allow poor performance and
mediocrity to persist in any form will only cost your organization in terms
of missed opportunities, reduced productivity, and diminished morale.
Recruitment and Retention: Some Creative Strategies
Attracting and retaining staff in an increasingly tight labour market isn’t as
simple as placing an ad in the paper or issuing a weekly paycheque; in fact,
many properties across the province have given their HR practices a serious
overhaul in a bid to entice good employees and keep them happy.
“The importance of retention really hit home a couple of years ago,” says Mandy Farmer, Vice
President of Accent Inns. “We’d always had an excellent rate of retention, and then suddenly we
weren’t doing so well anymore.” In a bid to turn things around, Accent Inns made a valuable
discovery. “Initially, we scrambled a bit,” admits Farmer, who explains that management’s first
reaction was to offer incentives like trips to Mexico as a retention tool. “We thought we were making
strides, but it was only through conducting an employee survey that we realized our staff members
were looking for something a little more meaningful.”
Consequently, Accent Inns has taken the needs of their employees to heart. Staff now has input on
everything from the uniforms they wear to the types of benefit plans offered. And equally important is
that they’re given explanations if their requests can’t be met. “They are thrilled at having a say in key
decisions,” says Farmer.
This type of positive staff engagement is also at the core of the retention strategy of the Marriott
Pinnacle Hotel, which was listed as one of BC’s best companies to work for in BC Business Magazine’s
2007 survey. “Our goal is to empower our associates,” explains Mike Truscott, the Marriott Pinnacle’s
Human Resources Director. He says that staff members are equipped to handle this freedom by
participating in a thorough orientation process, which is also a key ingredient in the hotel’s overall
retention strategy. “We have a two-day orientation process, we match new associates with a ‘Certified
New Hire Trainer,’ and new staff also receive 30-day, 90-day, and annual assessments so that they’re
made aware of how they’re doing,” explains Truscott.
In conjunction with retention strategies, the Marriott Pinnacle has also instituted steps to facilitate
staff hiring. Not content to sit back and wait for potential employees to knock on their door, the hotel
has a very proactive recruitment process. “We offer incentives to those associates who recommend
our hotel to potential candidates; we work closely with universities and colleges across the province to
recruit individuals who’ve shown a passion for the industry; and our human resources department
provides on-going opportunities for students looking for practicum opportunities,” says Truscott.
This emphasis on the importance of developing recruitment and retention tactics is echoed across the
province. At the Chateau Victoria, where staff retention has always been top of mind, the last four or
five years have seen the implementation of even more creative endeavours. “Birthday brunches, six-
month recognition, a significant staff discount, and an education allowance are all part of our recent
initiatives,” says General Manager Brenda Ollis, who notes that creating a genuine atmosphere of staff
appreciation is the single most important factor in retaining staff. She believes it is a key reason why
44 of the hotel’s 105 employees have been with Chateau Victoria at least five years.
Further up the coast, the Middle Beach Lodge in Tofino has also stepped up its recruitment and
retention strategy. “Due to the seasonal nature of our business, we’ve got added challenges,” says
Human Resources Director Keith MacLean. In a bid to implement the resort’s mantra, “Live, Work,
Play,” Middle Beach Lodge has sourced accommodation for its employees to ensure they have a safe,
clean place to live. “By building staff housing on the property, and then buying houses and apartments
in the area to use as staff accommodation, we’ve been able to mitigate one of the most difficult
aspects of retaining our staff,” notes MacLean.
Equally important is fulfilling the “Play” aspect, which is done through annual trips, parties, and
teambuilding sessions. “We do a camping trip to Sprout Lake, a ski trip to Mount Washington, and
offer a management retreat to Hornby Island,” explains MacLean. He’s also got an unconventional
plan for next year’s hiring process: he plans to conduct interviews out in the surf. “I need to convey
that this is more than just a job… it’s a lifestyle.”