Employee Retention

In 1999 employee turnover shot to its highest level in nearly two decades. On average, 1.2 % of the workforce left their jobs each month last year. This did not include departures due to layoffs, downsizing, or departures of temporary staff. Job turnover is soaring for a few reasons. One is definitely the strength of the economy. If companies need to find workers they can raise salaries, which increases the likelihood that someone will leave a job for one that pays more. Another reason is the loosening of bonds between employer and employee. There are lower levels of loyalty in today's work environment. I believe money and perks can be used to attract people to a company but to retain skilled workers, it takes more then just tangible elements. In order to retain good employees, today's workplace must make the proper adjustments to meet their demands. Good employees will not continue to work for a jerk if they know they can find a good job elsewhere. Empowering employees, career advancement opportunities, the right job fit, and a positive workplace environment can foster loyalty and commitment. But, most importantly, is high-quality leadership. First of all, employee ownership equals empowerment. Empowerment is getting employees to do what needs to be done rather then being told what to do. A controlling manager is not at the core of empowerment. "Efforts toward continuous improvement take hold only when employees feel a sense of pride and ownership in their jobs. And pride and ownership are the heart of empowerment efforts. Empowered individuals take initiative to find better ways to accomplish their everyday tasks" (Eitington, 161). Empowering employees allows them to be part of the decision making process. This leads to a better company image, employee satisfaction, and decreases employee turnover. At Home Depot, headquartered in Atlanta, employees who are responsible for maintaining product aisles in the company's stores, proudly and prominently display their names for customers to see. A smart organization gives its employees a sense of ownership. This doesn't have to be in financial terms, as shown with Home Depot. By giving employees an integral role in the operation of their departments and business units, the company fosters loyalty and commitment from employees. It also inspires them to do their best. Giving employees enough freedom and power to carry out their tasks allows them to take ownership of the results. When individuals believe that the work they are doing is important and that their tasks are meaningful they will maintain commitment to the company and will desire to grow with the company. Secondly, developing clear career advancement opportunities is an important step in fostering a sense of loyalty, trust, and commitment. Career plans, rewards for achievement, and encouraging further education are excellent ways to support employees. A career plan will help the employee set their long- term goals. Career development plans are agreements between employee and employer and they spell out exactly what one will receive to develop their skills such as tuition, time-off, formal training, classes, etc. Plans also include milestones for the achievement of learning goals. Rewards for achievement whether monetary such as a raise in pay or nonfinancial such as a change in title to reflect the level of work achieved are all-important to the fostering of loyalty and fulfillment. Encouraging further education not only makes employees more valuable to the company but it promotes a sense of well-being and satisfaction, which leads to loyalty and commitment. Starbucks Coffee has more then 400 retail stores, 26 major airport locations, a thriving mail order business, and direct sales to businesses such as Nordstrom, Barnes and Noble bookstores, and Delta shuttle. They have sales growth of 65 percent each year. All Starbucks employees, known internally as "partners", start their careers with twenty-four hours of classroom training at one of the company's regional training centers. They study retail skills, coffee brewing methods, customer service, pouring the "perfect" shot of espresso, and much more. Courses are taught by district managers, specialists, and training mangers that have all been through the courses already and have worked in a retail store for at least two months. Employees are making careers at Starbucks instead of dropping out. Starbucks offers their employees increased training and career advancement and this is a key factor in employee retention. Thirdly, the right job fit is an important component in employee retention. Providing opportunities to explore different positions within the company creates openness and growth. A great example is a chemical company that I read about in a consulting magazine. They place new scientists in the Research Assignments Program, which provides an introduction to various company research positions. These new hires spend 12-16 months exploring different research areas before they accept a specific position in a laboratory. These new scientists complete three to four different projects at different research laboratories. At the end of the program, each person transfers to a position that is chosen based on the individual's preference and performance and the company's current research priorities. This benefits new employees by giving them an opportunity to learn more about the company and helps them to develop a company network with a variety of managers and employees. A learning environment, such as this one, provides a chance to learn on the job and this improves skills, knowledge, and performance. It also keeps the employee's interest level high. The employee will be more eager to go to work if they feel they will learn something new and improve themselves. Finding something that an employee is interested in and allowing them to go further with it is the beginning of employee loyalty. The best organizations provide employees with opportunities to learn and better themselves. This enhances employee trust and loyalty follows. Also, corporate culture, company policies, and interpersonal relationships all work together to create the workplace environment. Culture drives the organization and its actions. Corporate culture speaks to the experience of work and what is meaningful to members, including shared beliefs, values, rules, and rituals within an organization. Strive for a climate that stresses and rewards openness, freedom, exploration, experimentation, the interaction of different individuals, team collaboration, and the mutual partaking of creative experiences. Recognize that a closed system - one marked by limited entry and exchange of ideas, and stifling of thinking, feeling, and imagining - establishes roadblocks to needed creativity. (Eitington, 607). A firm earns loyalty by creating a positive work environment that is stimulating and emphasizes