Plan for Employee Retention Before They Plan to Leave

happy employer and employee on employee screening blogWhat makes employees happy and loyal? Company culture, extra perks, feeling appreciated by their employers—all of these factors are important, but they are not the deciding ones when employees are faced with the decision: “should I stay or should I go?”  The two things employees put at the top of the list are pay and benefits.

According to a survey conducted for the last three years by a Florida staffing firm, compensation and benefits are the most important thing in their relationships with their employers.

Although fewer workers have quit jobs this year (according to the U.S. Department of Labor), history suggests that workers who are unhappy will start looking for employment elsewhere as the economy improves. And the main reason they’re unhappy?  Their pay has been cut during the recession.

One study, conducted last May, showed that employees at 235 large U.S. firms are less committed to their employers—so those firms who managed to keep their strongest people during the recession may be at risk of losing them.

What can employers do to hold on to good employees?

1. Make up for pay cuts: it’s a sure way of making affected employees happier. And if you plan on giving raises, say so! Now is not the time for surprises—people need reassurance more than ever. So don’t keep plans to yourself, or use a pay raise to bargain with an employee after they announce they’re quitting.

2. If you promise a pay raise, follow through: nothing is worse than making a promise and not delivering on it.

3. Be flexible: We’ve shared lots of ideas in this blog about boosting morale and supporting employees’ needs. Sometimes it can make up for lower pay—but not always.

4. Pay a performance bonus: If you can, write a bonus plan that rewards your staff for meeting objectives. Pay-for-performance is a good way to give a sense of ownership and commitment.

5. Be open and accountable: if management is getting raises and bonuses, and staff is not, be prepared to explain why.

Be sure to check out our Pre-Employment Screening services. Protect your business, increase your peace of mind and lower turnover by hiring smart!

Tags: , , , , ,

Leave a Reply

You must be logged in to post a comment.