Retaining talented employees is taking on a higher priority this year as more jobs become available, according to ClearRock Inc., a leadership development and outplacement firm, and employers should take a fresh look at how compensation relates to retention.
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Get Your Report Now!“With the cost of replacing workers who leave or don’t work out rising to two or three times their compensation, companies are revising their retention programs to encourage employees to stay with them longer,” said Ellie Eckhoff, vice president with ClearRock.
To help organizations better plan their retention efforts, ClearRock offers these insights on retaining talent:
One-size retention programs do not fit all–even within the same organizational level or salary band. “Unlike severance programs, which tend to be fundamentally more uniform, employers are customizing their retention efforts to fit the individual employees they want to retain. While retention bonuses have been generally regarded as senior-level benefits, they are also being used to retain high potential employees and middle managers,” said Susan Klaubert, vice president with ClearRock.
Monetary-related retention programs such as raises and bonuses are commonly not the first response–or even the best. “Although compensation increases and bonuses have their place, relatively few employees decide to leave an employer only because they have issues with their pay. Career potential and opportunities for advancement are also usually part of the reason employees consider leaving,” said Laura Poisson, senior vice president with ClearRock.
Nonmonetary retention rewards can be effective. “Effective nonmonetary programs include flexible hours and work schedules to fit an increasingly diverse work force, casual dress policies, and expanded opportunities to work at home,” added Poisson.
Place as high a priority on retaining talent as on recruiting employees. “With a majority of employers developing their future leaders internally, rather than hiring from the outside, companies have a greater investment, in both time and money, in experienced workers. Realize that they are just the type of employees other organizations–including your competitors--want to recruit the most,” said Klaubert.