Granted, some reasons employees leave a company are out of your control. People may quit a job for reasons as varied as having a bad commute, a deterioration of their community, an industry downturn, a desire to be closer to family or even to escape from unpleasant weather. However, most employees leave a company because of factors directly connected with their job.
Like the Rolling Stones’ song, “(I Can’t Get No) Satisfaction,” people leave a company when they are dissatisfied and decide they can only achieve their career goals somewhere else. To combat this, you need an armload of information relevant to your company in particular.
Find Out Why Employees Leave and Why They Stay
It’s important not only to have exit interviews in which you find out an employee’s reason for leaving, but also to ask those who have stayed with the company the reasons why they stay. A simple employee survey could open your eyes (and those of management) to all sorts of useful insights.
Studies have shown that the longer employees stay with a company, the more likely they are to continue to stay. Research company Blessing White’s Employee Engagement Report 2011 shows that engaged employees stay longer and provide more value to the company (http://grenell.com/cms/index.php/how-engaged-are-your-employees/ ). So the big question is, how does a company engage its employees?
Engage Your Employees
There are many ways to effectively engage employees. Here are a few ideas:
- Implement a strong career development program.
This involves many aspects of management, from the creation of job descriptions and career ladders with clear advancement steps tied to job performance, salary and status, to the time set aside for coaching and mentoring. Providing training to employees is a major part of any career development program. Some employers fear that if they train their employees, the employees will leave—but it is most often the other way around. Fail to train your employees, and they will leave.
- Monitor the company benefits constantly for improvement.
Having great benefits is a strong factor in retaining employees. Offering top wages is not enough, as employees make career decisions based on company benefits such as 401(k)s, profit sharing, sick leave, vacation, and health plans—especially as health insurance premiums continue to rise. The Department of Health and Human Services just released its guidelines to states for the creation of affordable insurance exchanges on July 11. Monitor your state’s efforts to carry out the new federal health care law and keep your employees informed.
- Make employees feel valued.
This is where job satisfaction begins and ends. To keep up morale and make people feel appreciated, you must create a workplace environment where managers are respected for their competence and fairness, and employees are recognized in multiple ways for their contributions. Develop creative employee incentive and reward programs, and you will affect employee productivity and company profitability. People have a strong need to feel valued.
- Empower your employees. Personal autonomy in completing tasks is important to employees because no one likes to feel powerless. Giving people some control over their workplace environment and schedule is often a wise move on the part of management, but so is delegating authority and trusting employees to follow through. Accountability and responsibility for results are essential for empowerment, so the benefit works both ways.
For additional information about how you can improve employee retention, please call a member of CAI’s Advice and Counsel team at (919) 878-9222 or (336) 668-7746.