Recently I attended employee forums hosted by the Company CEO of a large oil and gas company. Many different comments and questions arose in regards to compensation and retention. The first thing that comes to mind when creating a retention strategy generally is more money; if we “the company” give people more money than other companies are giving, we will retain people successfully.
This idea calls for a Stop, Look, Listen and Consider.
First, not all employees are worth retaining. The idea of retaining only the best performers and shedding the low performers to reduce costs, increase productivity, and have the best and most efficient workforce.
Secondly, money creates two things:
A) Golden Handcuffs –the feeling employees get when they are unable to leave a job because they fear or know that they are unable to get the same total rewards from another employer. They stay not because they are motivated, high performing or engaged, but because of the financial incentive. As many studies have shown –money does not enhance, improve or create engagement, motivation or high performance.
B) Entitlement –I received this (reward, retention initiative) and expect it regardless of my motivation, engagement, work ethic or performance.
What was suggested by the CEO?
Not financial payments, but career development and advancement opportunity. The idea that “our company” is one in which you are able to spend your career. Advancement opportunities are great; however, the picture is larger than a job for many people. What about location, work-life balance, other variables to contribute to people enjoying their lives and accomplishing their goals?
The greatest concern for employers is to retain the star performers who are driven, ambition and high performers. Employers need to jump on the train with these employees in order to keep them driven, ambitious and performing well.
Generation Gap?
Employers need to be creative in their retention strategies. Not all generations want the same thing from their employers. The younger generation (Y) compared to the older generation (baby boomers) expect more from their employers. Increased flex time, holidays, work life balance, leaves, job rotations, travel opportunities, international work opportunities, projects, education and fast tracked advancement are just some of the expectations generation y have for their employers.
