Your challenges... shared expertise ... your success.

The Retention Equation-Hang On For Dear Life by Eric Chester, 2006 Employee turnover. No issue facing employers today is more pressing, more top-of-mind, and more costly. Perhaps nowhere is turnover more of an issue than with those young, feisty, disloyal Gen Whys who seem predestined to bolt on a sudden impulse and leave you with a gaping hole in your frontline. You're not alone. Every company and organization is desperately looking for silver bullet solutions that are guaranteed to help them hang on to the people they've spent so much time, money, and energy to recruit and train to be productive members of their workforce. A myriad of books have been written on the subject, not to mention tons of white papers and articles, each based on countless hours of research, intensive studies, and polls. And where does all of this tremendous expenditure on human capital lead us? What is the secret of employee retention, the holy grail of management success? Well I've read all the books and poured through all the articles and research, and I'll give it to you straight. Hang on to your hat, folks, 'cause here it is: Be good to your employees, and do everything you can to meet their needs. I know. It can't be that simple, can it? There's got to be more to it, right? But before you simply dismiss it this policy outright, first check out the buried nuggets of gold it contains. Be good - The adjectives "kind," "true," "virtuous," and "honorable" are all used to define the word "good." These terms, coincidentally, are the same ones used to describe the managers who are able to retain workers, especially workers under the age of twenty-five. Having grown up at a time when everyone (even the youngest of kids) is exposed to the ugliness of life, your new hires have already been heavily exploited and manipulated by smoke-and-mirrors marketers and broken promises. This means that good Gen Whys are drawn to good cultures that consistently put people first, cultures that are good to their customers and really good to their employees. Do everything you can - Before you can figure out why some people leave your organization, you first have to ask what's compelling the others to stay. If you're competing solely on price and benefits, you'll always have to pay more/offer more than anyone else who might steal your talent. And while it's important to keep pace, it's even more important to look at what you can do for your employees that your competitors can't. You obviously have a strategy for brand differentiation when competing for customers, but it's equally important to have a strategy for brand differentiation when competing for frontline employees. After all, in this increasingly stingy labor market, the employees have the upper hand. Meet their needs - Not long ago, Jerry, a frustrated line supervisor at a bank branch, talked with me about the tumultuous staff turnover that was crushing his spirit and eating away at his profits. When I asked him why he couldn't hang on to his best tellers, he said, "I don't understand it! We give them a competitive salary, paid vacations, health benefits, and a 401K retirement plan." When I reminded Jerry that all three banks within the same two-block area also advertised the same compensation package, he said, "Well then, what do they want?" "I dunno" I replied. "Have you ever asked them?" "Nope, but we sure give 'em a lot more than I got when I first started here." From Jerry's viewpoint, the bank's compensation plan would have exceeded HIS needs when HE was the tellers' age. But it doesn't matter any longer what the policy or plan was yesterday. If you want today's workers to be here tomorrow, you have to know what THEY want today. That means you have to keep an ear to the ground so you can stay abreast of their needs. And, like it or not, you have to meet those needs. A Final Word The unwritten part of the retention equation is the human factor, because it's the glue that holds everything else together. While it's always a good idea to mentor employees of any age, it's especially important to mentor the young ones. Statistically speaking, throughout their young lives they have spent less than 5 minutes per day in meaningful dialogue with a parent. Simply put, these young employees are starving for face time. In other words, you can be good, do everything you can, and even meet the needs of your Gen Why employees, but if they don't have a personal relationship with a supervisor or a manager, they're not going to stay. And, always remember the key rule of Gen Why retention: Kids don't quit their jobs, they quit their boss. Hang on for dear life!

[ Home · About · Our Consultants · Publications · Main Page of the Herman Group ]

The Herman Group 7112 Viridian Lane Austin, TX 78739 Voice: 336-210-3548 Toll Free in US & Canada: 800-227-3566 E-mail: info@hermangroup.com