Developing a Retention Policy

• Conduct research on a regular basis to establish how employees are feeling and what is motivating them, or not, as the case may be. Employee opinion surveys are an effective means of capturing information across the organization. Encourage managers to speak with their team members, either within appraisals or more informally, and identify recurrent problems about their job or work environment. Overcoming issues at this stage could prevent your talent from walking out the door. Use the diagnostic ‘Hold On!’ to help identify problems.
• Use your exit interview process to determine real reasons for leaving. The results of these can be used to identify who is leaving and why. This will help shape your overall strategy. Share the information with managers, show them why people leave, and educate them on the influence they have in helping to retain talent.

2. Source Talent Broadly and Creatively

• Individuals are becoming more aware of, and receptive to, company brands and branding. Consequently, branding has become a major factor in the choices talented individuals make. You need to be viewed as an employer of choice with a strong employee value proposition. Be clear about your unique selling points and build and maintain your brand.
• Source talented employees broadly and creatively using a wide range of recruitment and selection methods. Look for talent continuously and recruit when you find a suitable individual.
• Recruit the right person for the right job and they will be less likely to leave. Adapt your interviewing process to ensure that candidates are both suitable for and capable of working in the proposed position. Talk through the career path that the candidate wishes to follow to ensure that the position on offer will fit in with and not hinder these plans.
• The initial 30–60 days in a new job is the first critical period in which turnover is a risk. Employee loyalty is earned early on and orientation programs are therefore crucial.

3. Develop Managers into Talent-Focused Leaders

Talented employees need great managers. Findings from a number of key research studies consistently point towards leadership as the key to retaining talent. The single largest cause for turnover is poor management, i.e. how people are treated by their manager. After all, managers are the ones that work closely with and have a direct effect upon employees.

• Recruit managers with people-oriented values.
• If retention is an issue, make it part of the company’s DNA; some organizations do this by making retention goals mandatory for managers. Devise measures to keep managers accountable; recognize the managers who retain employees, then reward their successes. Elevate retention to a core business initiative. Consider cross-departmental teams to address and lead retention initiatives.
• Review your management training program to ensure you are developing compassionate managers. Train them to pay close attention to how people are feeling about their work and to take proactive steps to keep talent from walking out the door. Equip them with the skills they need to create a climate and culture that makes staying worthwhile, e.g. how to: create meaningful, exciting work; pay attention to career growth, learning and development; nurture excellent working relationships; and to recognize and value individual contributions.
• Look at your talent pool and succession plan and identify your star performers.

4. Make Work Meaningful Where Employees Feel Valued

Employees are more likely to stay if their jobs are fulfilling.

• Encourage managers to design meaningful roles playing to team members’ strengths. Often, people enjoy a challenging job more than one which does not stretch them sufficiently. So again, encourage managers to ensure that employees are being adequately challenged.
• Employees who experience a sense of vocation/belonging and who feel valued are more likely to stay. Ensure that your organization recognizes when teams/individuals have performed well – lack of recognition for work completed can lead to low morale.
• Empowerment/Autonomy can be a powerful motivator. Consider creating a more empowered culture as part of your overall talent management strategy.

5. Create a Learning and Development Environment

People consistently cite a chance to learn and grow as a reason to stay with their employer. If they are not sufficiently stimulated and challenged by your organization, then they may go elsewhere.

• Coaching is an effective means of developing employees and improving performance, and it also makes them feel valued and supported.
• Provide employees with sufficient career management support. Ensure that they are made aware of opportunities for potential career advancement within the organization.

6. Ensure Your Financial Rewards are Competitive and Fair

Remuneration, though still important, no longer seems to be the primary incentive. However, although salary alone may not be enough to persuade an employee to stay, if your basic pay package does not match up to that of other similar organizations, you are immediately disadvantaged.

• Assess your pay and benefits package in comparison to other organizations to ensure that what you offer is in line with your competitors for talent, and that the existing benefits package is fair, strong and supportive. Pension plans are a traditional element of reward. Other financial incentives to consider include mortgage or insurance plans (often offered by banks and financial institutions).
• Some organizations encourage share-holding as a means of rewarding and retaining employees.
• Gym membership, child-care vouchers and discounts at supermarkets are becoming an increasingly popular addition to traditional financial rewards. There has also been a shift to non-monetary rewards as they can have a more enduring value than cash awards, reminding employees of their performance that earned recognition. For instance, a gift or a memorable event such as an evening’s entertainment or leisure activity.

7. Encourage Work-Life Balance

In, High Performers: How the Best Companies Find and Keep Them,[4] Martel cites several surveys which highlight the significant value employees apportion to the ability to balance work and family life. Research indicates that many employees today work to live as opposed to living to work. A balance between work and family or social life can therefore ensure that an employee remains happy in the workplace.

• Employers should help employees manage stress at work.
• Consider the introduction of flexitime or teleworking from home if this is appropriate. Make sure that adequate technology exists to support home working.
• Consider helping to provide access to childcare facilities.
• Consider the possibility of career breaks or secondments.
• Be consistent and fair about the application of work–life balance policy and be accommodating around all individual’s work–life balance needs.
• Consider paying employees for overtime.

8. Integrate an Ethics Policy

An organization’s ethical beliefs and practice can have a profound effect on employees.

• In general, organizations with rigorous ethical standards are benefiting from an increased ability to recruit and retain the best people.[2] So consider combining an ethics policy, together with communicating your organization’s values as an integral part of your retention policy.

9. Ensure Equality/Manage Diversity

• Promote a diverse and open culture within your organization.
• Ensure that people are promoted solely on the basis of merit and capability.
• Identify minority groups and ensure that they are made aware of opportunities.
• Review recruitment policies to ensure diversity.
• Be aware of prejudices which you or the organization may have and overcome these.
• Deal with any negative behaviors that will make it difficult for diversity to flourish.