Why pay attention to retention?

by: Crisanne Kadamus-Blackie and Dr. William Stone

Reprint from:  Maine State Chamber of Commerce IMPACT - Newsletter of Legislative and Regulatory Issues Facing Maine Business - September 14, 2000

According to the American Society for Training and Development (ASTD), retention is the number one issue facing corporate America today.  

Adding to the problem is the cost of attrition.  According to (Training and Development Magazine, April 2000). 

"Studies have found that the cost of replacing lost talent is 70 percent to 200 percent of that employee's annual salary." 

This, coupled with the knowledge management issues that result from lost employees, puts companies in the position to take action.  

 

To simplify a very complex issue, there are three key areas that relate to retention.  

First, companies need to be able to understand the reasons talented employees are leaving.  

Second, employers need to focus on the employees who are valuable, who want to stay, 

and are loyal to the company but no longer have the necessary skill sets to keep up with today's technology.  

Finally, there is the issue of attracting new, talented employees.

We have all experienced having one of our "stars" leave our company.  

What are the possible reasons this employee left?  Could it be due to feeling under-appreciated?  

Was this employee no longer feeling challenged, or did they leave for a better paying job?  

Often, as employers, we focus on the pay issues as being number one.  

The Hay Group study of 1999 revealed that the top reasons employees stay with a company include, in order of importance:

 Career growth;
 Learning and development;
 Exciting work;
 Meaningful work that makes a difference and contribution;
 Great people;
 Being part of a team;
 Recognition;
 Autonomy;
 Flexible work hours; and,
 Fair pay.  (Note that fair pay was at the bottom of the list.)

Dawn Mealey, program manager of the Maine Department of Labor's Employer Assistance Division, believes that 

"helping employers to understand why employees leave is critical."  She explains how often employers are not aware of how employees feel.  

Taking a look around at the company's atmosphere, environment, and communication flow will often provide an employer with the first clues 

as to how to retain employees.  

One area to focus upon is increasing the skill level of current employees.  Dr. William Stone, CEO of Promising Futures, tells us 

"an employee's career growth is dependent upon their ability to manage knowledge and apply new concepts in the workplace."  

The importance of encouraging life long learning is key to business success.  

The chapter entitled "Coaching the Intentional Learner" written by the Promising Futures staff, in the book Intentional Change states that 

"...everyone has a learning spark.  Once ignited, their life and view of the world will be forever changed."  

Employees who continue to learn, have opportunities for career growth, are listened to, and recognized for a job well done, 

tend to stay with a company.  The hiring process sets the retention stage.  

Anne Craigs, publisher of Employment times, explains the importance of having a daily plan for retention starting with orientation. 

"In order to break the cycle of turnover, the company needs to adopt new behaviors." (Employment Times   July 3, 2000).  

These new behaviors begin with the hiring process and continue through assisting employees with their own career development.  

Craigs continues to explain, "Once career development takes hold in a company, it feeds on itself."

Some resources to get you started with retention plans include:

 Promising Futures (877) 233-9685:	http://www.PromisingFutures.com

 The Maine Department of Labor, Bureau of Employment Services:  (207) 624-6390 http://www.state.me.us/labor/ucd/default.htm 
 Society for Human Resource Management:  	http://www.shrm.org 
 American Society for Training and Development:	http://www.astd.org 

Don't forget to ask your employees to tell you what is important to them.  

Working together and understanding their needs can increase your employee retention. 

Crisanne Kadamus Blackie, M.Ed., NCCC is a managing director and career coach and can be reached at cblackie@PromisingFutures.com.  

William Stone, Ed.D., NCCC is CEO and president of Promising Futures and can be reached at bstone@PromisingFutures.com.  

Both Ms. Blackie and Dr. Stone can be reached at   1-877-233-9685