Nothing sets a business back more than when a key employee at any level walks into your office and submits their letter of resignation. In most cases, it is too late to fix whatever caused that employee to suddenly announce they are about to become a former employee, and to say the least, that can be an extremely frustrating moment for any business owner. On the premise that proactive is better than reactive, allow me to offer some simple steps to consider, all designed to reduce the chances of the unwanted resignation moment.
The approach I advocate is simple. It focuses on a combination of doing many little things versus any one big one, essentially creating one more item the employee needs to leave behind should they choose to leave. To be more specific, many businesses are about the company, the title and the salary, and little more. Businesses that retain their employees more than others are about the fun, the team of people, the culture, the dress code, the extra benefits, the flexibility and so on.
Today, the companies that successfully stem turnover are offering flexibility in multiple ways. They allow employees to come in later than 9 a.m., as well as work from home some or all of the time. They”™re OK with jeans instead of dress slacks. The pantry/kitchen has company-provided fresh fruit, snacks and drinks instead of a vending machine.
Another common trait of firms with low turnover is that they find ways to positively and constructively connect their employees via company-organized and, in some cases, sponsored events. The company picnic or holiday party has now been supplemented and/or replaced with monthly happy hours, trips to the theater, movie night, and bowling and other sports leagues. While it is nice to see some firms paying the tab in full for all the above, the mere exercise of organizing these events but seeking financial participation by employees is still acceptable and can be just as rewarding.
My final pitch is for employee benefits. My focus, though, is not on medical and dental coverage. Instead, this is about the myriad of options out there in the category called “voluntary benefits” ”” those that are offered as an option for the employee to select at their cost, not the company”™s. The categories include supplemental medical coverage, extra life insurance, short- and long-term disability policies, pet insurance, pre-paid legal services, and optical and long-term care, just to name a few. One key bit of advice: When talking with your broker about these options, focus on offering them at a time other than when you renew for your medical coverage. Why? Most companies get so overwhelmed at primary insurance renewal time that they drop plans for these other benefit offerings due to time constraints.
If you pay poorly and treat your people without respect, then the above measures are likely to have little impact. Most of us, though, will see measurable results over time by investing some time and effort when implementing even just some of these ideas.
David Lewis is president/CEO of FairfieldCountyJobs.com and WestchesterCountyJobs.com.
David,
Good article. I also agree that having every single benefit renew at the same time, while that sounds ideal from the HR manager’s perspective, is overwhelming decision-wise for the leadership and the employees.
I think the other parameter we most often miss is integrating Brand in employee retention. Brand is about internal as well as external reinforcement. Including employees in Brand vocabulary and mission is crucial to success.
Thanks!