Retaining employees is probably one of the most important things an organization has to do. Considering the cost of hiring and training it takes for each employee, losing him or her turns out to be quite big cost for the organization. Employee retention is now actually considered to be an art, and a very valuable art it is.
Research has shown that even the highest earning employees in an organization have been known to depart unexpectedly. One reason for this could be that the organization culture does not suit them or they do not get on well with their boss, among many others. As Jay Conger, the Henry Kravis Research Professor of Leadership Studies at Claremont McKenna College and author of
The Practice of Leadership: Developing the Next Generation of Leaders, points out, “The largest predictor of whether someone will stay with a company is their satisfaction with their immediate boss.” I am sure you know of many people in your close circle of friends who have switched organizations just because they were unhappy with their boss. Apart from this, many people realize that it’s not just the organization, they are just not happy with their line of work. There are some doctors who have earned MBA degrees because they prefer management to being a doctor. You must know of many retired army personnel who study human resource management and become lecturers because they like teaching.
So how do we retain the employees, especially in weak economic conditions? Well according to our research we have found a few key methods of doing this for managers:
- Individual must be researched thoroughly before their retention plan is made. The most popular method is by survey.
- One type of retention plan does not fit all. Each retention plan must be tailored to each individual in the organization.
- Money is not the core part of any retention plan.
- Praise good work unsparingly.
- Sometimes financial retention plans are required, but they must be designed appropriately.
- Everyone need career advice once in a while, even some of the top management. For this, start a mentorship program.
- Sometimes employees become anxious or frustrated during trying times of the economy. Respond to these frustrations, try to find out exactly what is bothering them.
- Be a good communicator.
- Build a strong culture. Organizations with a strong culture have higher retention rates.