2010 Starts with Employee Retention...

Posted by Jason Alexander

As we enter into Q1 of 2010 emotions are mixed in the NH and MA business communities. While most will agree that we have a way to go before times are universally prosperous the job market is beginning to shift for the better. Although we find ourselves in the wake of economic disaster and most businesses continue to be instinctively locked into tactical survival mode, smart companies are strategically planning for the long term. It may appear that labor is cheap and potential employees are available in large quantity however the war for talent is already under way. The quality of employee retention can be the difference between capitalizing on prosperous times and back peddling to combat attrition. Your window of opportunity narrows every day.

When the dot com boom became the dot bomb bust, times became challenging for a multitude of industries. While faced with the challenges of staying afloat, making payroll, and satisfying customers with limited resources, many businesses lost sight of employee satisfaction and valuation (This has been an equally, if not more intensely, common thread throughout the last twelve to eighteen months). In 2004 and 2005, as the market began to rebound, employees began leaving their employers in droves. Why? Other companies started to pay. New companies were emerging. New and exciting challenges were becoming available. Most importantly, the opportunity to be valued had again become available. These challenges are avoidable but it takes time, thought, and commitment.


Value Employees Proactively

Many instinctively feel that valuing an employee starts and ends with $$MONEY$$. While it is difficult to hide from the necessity of the all mighty dollar and the comfort it can provide, placing value on employees involves a great deal more. Positive reinforcement, increased exposure and responsibility, recognition, and non-monetary benefits are all great ways to show an employee is appreciated and highly valued. The only problem, and often magnified in challenging times, is that these gestures are typically delivered at the request (or repeated demand) of the employee. Developing a frequent and structured practice of illustrating employee appreciation and valuation can be a major factor in an integral resource staying put or moving to where the grass is greener.


Follow Through on Promises

Tough times require any business to do what it takes to survive. Often this means paying an employee less, requiring more hours, or demanding one performs the tasks of two in exchange for stability and the promise of future benefits. This is a perfectly acceptable practice “IF” promises are documented and followed through with in a timely and proactive fashion. Running your business with integrity can easily equate to a comfortable employee base. As cliché as it may sound, trust must precede passion and productivity.


Listen to Your People

Difficult economic times can, all too easily, cripple our listening skills. “Employees are lucky to have jobs and we need it NOW. Let’s just get through this month and we can talk later. We just lost our largest client; I don’t have time for this.” Stop me if any of this sounds familiar. While the intent of such rants isn’t malicious and the motive is instinctively survivalist, the message is less than comforting and often not forgotten. In any address delivered by a motivational business leader, we are typically, in some way shape or form, instructed to step outside our comfort zone. In a disastrous economy, making the time to sit down and listen to our employees can be dramatically outside of our comfort zones. Make the time and make it often. Listen and react to how your employees enjoy their roles, their compensation, their place in life, their career progression and anything they want to talk about (within reason).


In Conclusion

Businesses have an amazing opportunity to retain a strong foundational employee base if they make employee retention an urgent priority today. In the not-so-distant future we will find ourselves in far more prosperous and rewarding times. Take a moment to forecast your optimal scenario. When economic growth is uncurbed and dollars are free-flowing do you want to find your company building products and delivering services or struggling to rebuild your critical staff. Currently the outcome remains controllable. The question is for how long.