Retention Management

Retention Management

It is a systematic effort by employers to create and foster an environment that encourages current employees to remain at the same employer having policies and practices in place that address their diverse needs”

Hire the right people. Seek out people who are intrinsically motivated and interested in developing their skills and careers. Those only seeking money and power are classic turnover risks. Clearly establish expectations when you hire so that disappointments on both sides can be avoided. It’s also important to understand your company culture and how potential hires fit into it.

Have a good system for evaluating performance. Both the company and the employee benefit from knowing exactly where they stand in relation to each other’s expectations. By monitoring and sharing results, it becomes clear which employees are meeting (or not meeting) performance expectations. Evaluation gives middle market companies the chance to recognize and reward excellence, a key aspect of employee retention. Employees expect feedback and will leave if they’re not getting enough.

Track your levels of retention/turnover and overall employee satisfaction. This allows you and your employees to know where problems are so you can solve them. Having an employee satisfaction survey, and then acting upon it, can decrease turnover. Questions you’ll need to include: Are your people happy with compensation and benefits? With how they are managed? With the challenges the company offers them? With the training opportunities? Collecting this information will help support your ongoing retention efforts.

Train managers and supervisors in good communication skills so that expectations between employees and managers can be openly established. Evaluation of performance begins with clear, measurable expectations that both manager and employee agree to and track. Giving managers better skills in offering important (sometimes sensitive) feedback is crucial. Employees generally don’t quit on the company, they quit on their managers. Having managers who communicate feedback well and behave professionally is perhaps your best retention strategy.

Offer employees a career path and a career development plan. This will allow your employees to have a better long-term vision of their evolving role inside the company. It will also allow the company to show its commitment to developing its talent, which benefits both the company and the employee. If employees have gaps in their skills or experiences, a career development plan (created by the manager, the employee, and HR working together) lets the employee realize that the company wants to close that gap and prepare the employee for the next step. Thus, employees don’t feel “stuck” and without growth potential in the company, problems that are major drivers of turnover and low morale.

Have a recognition program that celebrates employees with excellent performance. It’s not just the high achievers who deserve recognition, but anyone who goes above and beyond the call of duty. Reward good examples, and you create a culture where everyone wants to be a good example. This is also a culture that retains people. In addition, managers should seek out opportunities to recognize or appreciate employees informally, perhaps over lunch or during water-cooler conversations. These are moments employees remember: Employees who feel valued generally reciprocate by offering their loyalty to the company.

Customize benefits and work expectations for individual employees as much as possible. This will take a lot of time and effort because it requires companies to better understand the particular needs of their employees. Different employees want different things, so offering the same benefits package and working conditions to all will inevitably create dissatisfaction. This is a turnover risk. While it may be inconvenient to offer more flexible working hours or a customizable menu of benefits, such practices boost employee satisfaction and loyalty.

Recognize a Healthy Work/Life Balance: You can’t expect your employees to function like robots.  Only a happy employee will prove to be a productive employee, and in spite of offering high salary, if the employee is not able to spend leisure time with his family, he will not be satisfied with the work. So design policies which can offer work life balance to employees, which can include compulsory paid leaves, fixing the time of work, weekends off etc.

Creating Equitable pay and Performance Processes: Employers should use a variety of hard (monetary) and soft (non-monetary) employee compensation strategies to make it difficult for other companies to steal their people away. These include Discussing total employee compensation (salary, benefits, bonuses, training, etc.) Designing reward systems to stimulate employee involvement.

Create open communication between employees and management. Hold regular meetings in which employees can offer ideas and ask questions. Have an open-door policy that encourages employees to speak frankly with their managers without fear of repercussion.

Building employee commitment

An employee can termed as committed when he or she gets involved completely towards her assigned work which would lead to attain the business objective. A committed employee is passionate about his/her work and committed towards his responsibility.

Keeping an employee engaged: Building committed workforce is not a rocket science. It is a mere understanding of the expectations of the current employees and closing the gaps wherever required.

Reasons behind lack of commitment:

  1. Expectation Mismatch: The job which is offered to the employee is not up to his expectation. The responsibility entrusted to him does not meet his expectation. In other words there is a mismatch between the job and the employee that leads him to job dissatisfaction.
  2. No Appreciation: When an employee feels that his supervisor does not recognize his work he loses interest from his current job and feels de-motivated
  3. Lack of growth opportunity: When an employee finds his career at a stagnant position due to lack of growth opportunity he tries to find the scope outside the organization.
  4. No support: Trust and support is a key to retain an employee. When an employee finds that he lacks in support from his supervisor or management he is very likely to loose his/her commitment towards the organization.
  5. Work life Stress: Overload from the work may lead an employee to lead an imbalance life that leads to dissatisfaction of work resulting in lack of commitment.
  6. Better External Offer: Any job offer which gives a greater responsibility, higher pay, learning opportunities and promise growth would lure an employee to get reduce the level commitment towards the organisation.

Employee Commitment Building

Employee Commitment starts not from the time an employee joins the organization but much before that. The process of retention begins right from the start of the recruitment process.

  • The first time that an organisation interacts with an employee is at the time of recruitment where the best impression has to be portrayed to the prospective employee. (For Eg. A momento or a certificate stating thank you message for choosing ABC company for employees future prospect)
  • Proper training should be given to the managers on interview and management techniques.
  • The on boarding activity carried on decides the comfort level of the new employee.

BASICS SHOULD BE ALIGNED:

  • Workplace should be hygienic.
  • Assurance of safety.
  • Timely & Accurate Payment of Salary, incentives, other allowances like medical etc.

PERFORMANCE MANAGEMENT:

  • Performance expectation settings should be highlighted from DAY 1, in fact it is better to clear it at the time of final stage of interview to avoid expectation mis-match
  • Performance based Incentives or bonus.
  • Transparent Performance Management i.e. fair evaluation of employee performance.
  • Make the performance management criteria as simple as possible.
  • Performance Measurement on a regular basis (for eg.monthly) basis and not as a year-end activity.
  • Highlight the top performers and make these visible though company intranet, display boards, etc. It will encourage others to put in their best, thereby creating a competitive environment within the company. (If a systems approach is followed to shortlist high performers, you can surely avoid disgruntlements.)

CAREER ADVANCEMENT/IMPROVEMENT PLATFORMS:

  • Mentoring programs
  • Regular trainings
  • Highlight latest news (like product launches, industry updates etc) on the notice boards.
  • Provide necessary tools to the employees to achieve their professional and personal goals
  • Higher study opportunities for employees
  • Vocational counseling
  • Offer personalized career guidance to employees

LISTEN TO THE EMPLOYEE & SHOW INTEREST IN IDEAS: (Need to train the line managers on the same)

  • Appreciate new ideas and reward risk-taking
  • Show support for individual initiative
  • Encourage creativity
  • Conduct OPEN FORUMS/Open House Discussions and feedback mechanisms.

REWARDS & RECOGNITION: Appreciation and recognition of a well job done.

  • Personalized well done and thank-you cards from supervisors.
  • Congratulations e-cards or cards sent to spouses/families
  • Emails or messages from top management
  • Recognizing employees on their completion of tenures like 1 year, 3 years, 5 Years etc)
  • Rewards (gift, certificates, monetary and non monetary rewards)
  • Recognizing professional as well as personal significant events.
  • Reward not only the top performers but also a few others who are in need of motivation to exhibit their potential. (For Eg. Most Improvement awards)

FUN AT WORK:

  • Celebrate birthdays, anniversaries, retirements, promotions, etc
  • Holiday parties and holiday gift certificates
  • Occasional parties like diwali, holi, dushera, etc
  • Organize get together for watching football, hockey, cricket matches
  • Organize picnics and trips for movies etc
  • Sports outings like cricket match etc
  • Indoor games

OCCASIONAL STRESS RELIEVERS:

  • “Casual dress” day
  • “Green is the color” day
  • Handwriting analysis
  • Tatoo, mehandi, hair braiding stalls on weekends
  • Mini cricket in office
  • Ice cream Fridays
  • Holi-Day breakfast

GIFTS:

  • Wedding gifts
  • Anniversary gifts
  • New born baby gifts
  • Scholarships for employee’s children
  • Get well cards/flowers
  • Birthday cards, celebrations and gifts

PROVIDING BENEFITS:

  • Home insurance plans
  • Legal insurance
  • Travel insurance
  • Disability programs

PROVING PERKS: It includes coupons, discounts, rebates, etc

  • Discounts in cinema halls, museums, restaurants, etc.
  • Retail store discounts
  • Computer peripherals purchase discounts

PROVIDING WORKPLACE CONVENIENCE:

  • On-site ATM
  • On-site facilities for which cost is paid by employees such as laundry facility for bachelors and Shipping services
  • Assistance with tax calculations and submission of forms
  • Financial planning assistance
  • Casual dress policies
  • Facilities for expectant mothers such as Parking, Parenting guide, Lactation rooms & Flexi timings

EMPLOYEE SUPPORT IN TOUGH TIME or PERSONAL CRISIS

  • Personal loans for emergencies
  • Childcare and eldercare services
  • Employee Assistance Programs (Counseling sessions etc)
  • Emergency childcare services

PROVIDE AN ENVIRONMENT OF TRUST: Communication is the most important and effective way to develop trust.

  • Suggestion committees can be created
  • Open door communication policy can be followed
  • Regular feedbacks on organization’s goals and activities should be taken from the employees by Management communications
  • Intranet and Internet can be used as they provide 24X7 access to the information.
  • Newsletters, notice boards, etc.

Measuring Employee Commitment

The employee engagement can be measured through the following means:

1) Measure staff satisfaction level for Eg: Staff attrition, Employee Surveys

2) Balance Score Card Approach

3) Track the productivity

4) Have OPEN FORUM sessions

5) HR Audit (HR Operational Activity)

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