The Opportunity
It seems that every company is subject to the risk of having its employees raided by recruiting firms, private headhunters, or other companies.
Replacing an employee is a huge expense. Besides the obvious cost of recruiting, hiring, and training a replacement; you also have to count the cost of losing the unique knowledge of any particular person, the time for the learning curve of the new person, and the time for the rest of the company to adapt to the changing of the guard. All of this is time and energy taken away from doing business.
The Solution
One manager told me, “I can never truly replace a good employee. We always end up redesigning the job to fit around a new person. Sometimes the change is for the better, but people are simply not interchangeable.”
Here are some ideas for avoiding this complex and costly process:
Pay Top Dollar
This is not a popular option. I receive lots of e-mails asking for ideas of how to keep employees happy without spending a lot of money, and some are included in this article, but the truth of the matter is that this is a capitalistic economy and there is no substitute for money as a motivating factor.
Besides the intrinsic value of the money itself, people know that when they’re paid more, they’re taken more seriously inside and outside the company. People value what they pay for. Things that are inexpensive are often taken for granted. Public education is a good example of this- observe the behavior and work habits of a group of students in a college-level class in a public high school, compared to those studying the same subject in a private university. Offering someone a job for more money is a huge compliment and a validation of a person’s skills and value to a company. This is why that offer is so hard to resist.
Companies we know that pay their employees top dollar often recoup this expense by having fewer employees. Their employees take their jobs more seriously, are more flexible and willing to learn new things and take on extra responsibilities.
Frequent, Regular and Objective Feedback
In exit interviews, employees often cite lack of feedback as a factor in deciding to leave. “I never really knew where I stood.” one employee said. “How I was doing seemed to hinge more on the boss’ mood that day than on any action or inaction on my part.”
His (soon to be ex) manager, on the other hand, said that he had never given this employee feedback because “he seemed to be doing fine.” I suspect this manager never paid much attention this person until the day he gave his notice.
Implementing a simple, easy to understand measurement system that employees can use to rate their own performance is a great way to motivate and keep employees. It is important to track performance statistics and make them accessible to the employee who is being evaluated.
- Performance reviews based on objective criteria.
- Scheduled feedback sessions with manager/supervisor
Career Path
One of the largest reasons for leaving cited is the perception that “there’s no future here.”
People are goal-oriented beings. They need to see progress, and need to have an idea of where they’re going. One company identified a group of employees and appointed a personal career coach to each of them. They remarked that it was so remarkable to have someone asking them what they wanted to do next.
In order for coaching to be effective, everyone involved in strategic planning for the organization should communicate selected messages about where the company is headed, to the coaches and employees. Anticipate new skills that the company expects to need, and potential future opportunities for people in a general sense.
Conclusion
Although there are thousands of low-cost ways to motivate employees, those are side dishes and desserts. Pay, feedback, and career pathing is the structure and substance that your employees depend on. If you’re missing the “meat and potatoes” for your employees, anything else is of limited value.
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