Retaining employees in today’s market

Posted By Lynette On February 17th, 2009 at 4:22pm

by Erin Mayer
One of the philosophies of companies which attract, retain and motivate high performing employees is a positive attitude toward individuals and a belief that valuing them is key. In this era of acquisitions, increased change, and lay-offs, it is quite easy for top management to see employees as expendable resources to be hired and fired at will according to the current short-term business plan. Employees get scared and cynical and keep their eyes open for new, more secure opportunities.  They also report ‘the ship is sinking’ to friends, relatives, and random strangers!

Many companies scream, “People are our most important asset.” But talk is cheap. Similarly, many companies post mission/vision statements that must be backed up in practice to be believed.
Small and large companies are equally affected by the changing market- The loyalty that some employers and employees proudly proclaim is dependent. When the labor market is tight, people and companies seem to look out for number one.

Some companies forget that the ‘entry level’ positions are often filled by individuals that are coming directly into contact with customers- Yet companies often overlook these new people or simply forget to communicate with them. This happens in so many industries; banking (tellers), hotel/motel (housekeeping), building materials (stockers/counter workers/etc…) retail… the list goes on and on.
There is a clear caste system in most companies- and most fail to understand or calculate the cost of this turnover. (in addition to the cost of lost customers- disgruntled employees tell others and can alter the buying habits of many).

What are the basic principles of a positive ‘company attitude’?

1. First, employees need to feel they are appreciated, valued and trusted.  This isn’t touchy-feely- It is about respecting people and their contributions to the company effort. This principle implies competence.

2. Development.  Each person in an organization needs to be good at what they do, and you know what… few people start out that way. Employees who participate in their own growth and development plans are going to stick around because they know their company wants more for them.  Managers are often overworked and busy- so training and developing new employees often goes to the wayside.

3. Increased responsibility. As people learn and grow, they should be given additional responsibility.  This will help them to feel a sense of ownership and a feeling that they are contributing and are a valuable asset.

4. Good relationship with immediate manager.  All research shows this to be critical.  Every day one is working under someone who either helps them to feel better or to feel worse. Granted, not all relationships are going to be wonderful (or should be wonderful, for that matter… ) but attention to this area is crucial.

These are not new concepts- sometimes we just forget how important they are… they apply to companies of all sizes.  Whether small or large… Foundation is the key!

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