Tips For Retaining Top Talent

It takes a lot of time and money to recruit talented people.  The cost of hiring the wrong person, according to an Inc.com article, can be upwards of $240,000.  That’s a high price to pay for a bad hire. 

Even if you are fortunate enough to hire the right person for the job, it can be expensive if they decide to leave after a short period of time.  Add training costs, transition time to get the new employee productive, the electronic devices, computer setup, office space, the cost of business cards, and the cost of hiring and launching a new employee adds up. 

Onboarding, or orientation programs that go beyond the traditional one-day blitz of meeting everyone and getting a lot of office supplies, are popular new programs to help new employees become part of the company over three to six months.  Onboarding is a formal process with a three-month agenda of activities, feedback opportunities, training and management involvement for a new employee.  New employees are asked for feedback on the position, co-workers, managers, and the onboarding process as well.  Once an employee completes the onboarding process, they should be settled in, productive and feeling like a part of the organization.

But what makes employees stay after the attention is gone?  A Docstoc.com article, “The Top 5 Contributors to Employee Satisfaction,” based on a research project by the Society for Human Resource Management (SHRM) identified the top five components for employee satisfaction.  In this difficult economy, you would think that money would be first on the list.  Surprisingly, it isn’t.  After taking all the time, resources and money recruiting the best of the best, it pays to pay attention to what employees feel is important to long-term retention.

The SHRM surveys revealed that 81percent of the respondents were satisfied with their jobs.  The high satisfaction rate may be due to people just happy to have a job.  Solid working relationships with management and co-workers were high on the list of job satisfiers.  Despite these high ratings, 44 percent of those surveyed were looking for a new job.  It’s a wake-up call to employers and recruiters alike that job satisfaction doesn’t always mean retention.  Giving employees more of what they need is the key.

Number five on the list was good relationships with their supervisors.  With the impersonalization of the workplace due to digital devices, you wouldn’t think getting to know the boss wouldn’t be so important.  Human nature is to form relationships, especially with those you depend on or have to work with.

Fifty-seven percent said good communication with upper management was a key to job satisfaction.  Employees want strong leaders who are approachable and available.  Millennials and Gen Xers aren’t as impressed with titles as the Baby Boomers or Veterans.  They feel more like peers and need contact and interaction with upper management to feel a part of the organization.

Number three on the job satisfaction list is compensation.  Only 54 percent said they were happy with their compensation package.  Employers are cutting benefits and trying to save money.  Compensation isn’t just a paycheck but the total package of salary and benefits.

Job security comes in at Number 2.  It is more important to the Baby Boomers and Veterans than the Gen Xers and Millennials.  Maybe it’s the reality of the younger generations who only know recession.  You still have to pay the bills, no matter how fulfilled and inspired you are with your job.

The top job satisfier was the ability to use skills and abilities.  Employees want to feel like they are contributing to the success of the organization.  Most employees have skills and abilities beyond their job description.  Organizations that appreciate their employees’ depth of skills and make an effort to provide opportunities to use them to better the organization across departmental lines are the real winners.

Recruiting is one thing.  Retention saves money, helps an organization grow, and provides employees with a place to use the skills and abilities they trained for and learned along the way.

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