TGIM: Your Retention Strategies May Need an Overhaul

9 Jan

It’s Monday, you know what that means! Here is another installment of our TGIM series, or Thank Goodness It’s Monday.  Each Monday our posts will focus on employee engagement and we hope to hear your thoughts on Twitter using the #TGIM hashtag or with a reply to us @SageHRMS.

As the global economy comes to rely on knowledge and information, as opposed to raw labor and manufacturing, the need for developed markets to adapt becomes paramount. In the United States, the recession and the resulting plague of unemployment has shown this to be true. Although some manufacturing jobs have returned, the skills that are most in-demand are in the fields of business services, healthcare, and education – all of which require considerable training.

Consider a few facts: More than 13 million Americans are currently unemployed, but there are more than 3.3 million open positions. What’s more, a number of economists, including those representing the Federal Reserve, agree that unemployment will hover around its current level of 8.6 percent through 2012.

Meanwhile, student debt is rising as jobless Americans return to school to beef up resumes and improve their job prospects. A recent report by the New York Federal Reserve even found the total volume of student debt is now greater than that of credit card debt.

Analysts generally agree that the job market will not be able to recover until there is a considerable shift in the dynamics of the U.S. workforce – that is, a trend toward greater knowledge and skills. However, an added challenge will arise in the form of employers’ ability to hold on to talent.

According to a recent Deloitte survey, roughly one-third of employed Americans plan to look for a new job once the economy recovers. Businesses need to adopt retention strategies if they intend to hold on to their top performers. Here are a few considerations to make toward that end.

1.) Training programs improve morale and job satisfaction

People like to feel like they belong to an organization and that their contributions make a significant impact on its well-being. Broadening an employee’s range of skills and responsibilities will help enhance their sense of belonging and hopefully further commit them to the organization. Consider offering night courses or on-the-job training programs to boost skills and establish a stronger relationship.

However, new responsibilities need to be met with higher compensation, as workers will only lift so much additional weight before they ask for a raise.

2.) Employee recognition goes a long way

Compensation is, of course, important. But most people also want to be recognized for their work. They want to know that they’re doing a good job – not to the point of superficiality, just enough to feel good about their accomplishments and ensure continued effort. Consider offering top performers a greater role in the decision-making process or set them up with a mentor.

 3.) Transparency can build trust and devotion

Whether its finances, marketing or HR solutions, opening strategy to deliberation among top performers will highlight the owner’s commitment to his or her employees and help establish trust between parties. If staff retention is your company’s long-term goal, you’ll need to earn their trust before any other strategy can be considered. As the economy continues to improve, albeit tepidly, the need for retention tactics will become dire.

What are some other ways HR managers can boost employee retention?

Let us know what you think on Twitter by tweeting with the hashtag #TGIM, or reply to us @SageHRMS.

Comments are closed.