Magic Bullets to Surviving Thriving in the Midst of the Talent Shortage and “The Great Resignation”:
Installment 2 – Comp’s Not the Only Game in Town
An article contributed by Karen DiGioia of Herbein | Mosteller HR Solutions
A few weeks ago, the first installment blog in this multi-part series focused on compensation. If you missed it, click here to catch up.
It’s critical that organizations realize compensation is not the only game in town. Why? In the post-pandemic workplace, while it’s critical to have a foundation of competitive compensation, focusing solely on compensation is typically not sustainable, effective, nor fiscally sound.
What else does your organization need to focus on to ensure that you can get – and keep – the talent you need to succeed? Let’s start with retention. Bringing in new employees is challenging, time-consuming, and costly. Now, more than ever, organizations should focus on retaining the talent they have.
To look at how to retain employees, start with why employees leave.
While many employees who resign say that they are leaving for a job with higher pay and better benefits, the real question is “why did they go looking for another job in the first place?” Frequently, their decision has nothing to do with pay and benefits. Let’s explore some of the real reasons behind why employees leave. While each of these areas could be its own blog, we’ll touch briefly on several things organizations can do to improve their ability to retain.
#1: Invest the time and money needed to build strong managers.
There’s an old saying that goes something like this: “Employees don’t leave companies, they leave managers.” When conducting exit interviews on behalf of clients, we hear confirmation of this time and time again. Managers are an organization’s main point of contact with employees. According to Gallup, if employees are engaged by a leader they trust, it can take a pay increase of more than 20% to entice them to leave.
Strong managers communicate. They lead. They inspire. They develop. They recognize and play to the strengths of each employee. They retain.
Unfortunately, few managers are ever trained in how to manage. Many were strong operational, tactical, technical employees who were promoted into a management role and expected (magically?) to know how to lead and direct others. Often, the unfortunate result is ineffective managers whose employees are more than happy to leave. In addition to investing in a foundation of competitive compensation, organizations need to invest in managers. Supervisory and management training are critical to ensuring that your managers, new and experienced, know how to communicate, lead, inspire, develop, nurture, grow, and retain employees.
#2: Communicate, communicate, and communicate some more.
We’ve always heard that “safety is job one.” When it comes to your employees (as with all relationships), communication is job one! A strong relationship is reliant upon strong two-way communications. Managers needs to communicate (see above), and so do organizations.
Listen: Gather feedback. Whether it’s focus groups, one-on-ones, employee satisfaction and engagement surveys or stay and exit interviews, you need to listen to your employees. As Epictetus, a Greek philosopher from the first century AD, was credited with saying “We have two ears and one mouth so that we can listen twice as much as we speak.” Make sure your organization is creating regular (and safe) opportunities for employees to speak and that your organization is listening with both ears!
Speak: While it’s critical to listen, it’s equally important for organizations and managers to speak. Managers need to proactively communicate with employees about expectations and then provide regular feedback regarding performance.
While discussions about performance frequently focus on the details, communication should also consider the bigger picture. Employees want and need to understand how they fit into the full organization and understand that they and what they do has value.
What about organizations? What should our organizations be focusing on from a communications perspective? Generally, organizations are strong at communicating information to employees – benefits open enrollment dates, performance review deadlines, employee meeting schedules, project deadlines, new product releases. But, again, let’s not forget about the bigger picture. Make sure that you’re clearly communicating the organization’s mission and values, tactical and strategic goals, and long-term vision. Employees who understand the bigger picture and how they fit into it are more engaged, more effective, and more likely to be with you for the long haul.
#3: Invest in employee development and training.
More than a job, employees are looking for careers. Make sure you are creating opportunities for them to learn and grow. By developing your current talent, you’ll improve retention and better position the organization to promote from within the organization when the need arises.
#4: Commit to the health and well-being of employees.
The past two years have been rough. Recognize that stress and burn-out are rampant and that, as an employer, it’s appropriate to help. The tactics you can use run the gamut from formal programs like EAPs that provide support for employees struggling with stress, to less formal approaches. Employer sponsored desk yoga. After work (voluntary) employee gatherings and happy hour. Virtual “water cooler” events to allow remote workers to connect and chat about non-work stuff. Employer-sanctioned “mental health” days. Bottom line: Provide ways for employees to connect and de-stress.
#5: Build a healthy culture.
We hear a lot about creating and nurturing a healthy work culture, but may not spend a lot of time defining what a healthy culture is. We often take more of a “you know it when you see it” approach. A healthy culture is one where employees are trusted, safe, respected, and valued. Their opinions and input are sought out, considered, and appreciated. In a healthy environment, employees feel safe to speak up when they see a problem and feel comfortable “being themselves” at work. People and the organization operate with integrity. While this is far from an all-inclusive list, it’s a pretty good start. Look around: Do those statements fit your organization? If your answer is “no,” you’ve got some challenging, but worthwhile work ahead of you. As the saying goes, “the longest journey begins with a single step.” Start at the top of the organization to gain commitment for meaningful change, identify your challenges, and take it from there – one step at a time.
#6: Embrace flexibility.
In a recent article, McKinsey and Company reported on research that found that parents were more likely, in recent months, to have left their job than nonparents. The reasons largely had to do with work/life balance challenges. Organizations that are open to flexibility are better positioned to attract and retain employees who are struggling to maintain this balance successfully.
Flexibility can take many forms (and they don’t apply only to parents):
Schedule – Is full time work a requirement or is part-time an option? Is there flexibility regarding when work can be done? How often do the scheduling expectations change? Can you accommodate periodic shifts in schedule or hours so an employee can get their child to dance class, baseball practice, or a doctor’s appointment? The more flexible you can be as an employer, the better you position yourself to retain (and attract) employees.
Location – Is remote work an option? This can be a permanent arrangement or on an “as needed” basis. Employers that require all employees to show up all the time are at a disadvantage when it comes to attracting and retaining employees.
Another form of flexibility may apply to later-career employees. Those nearing retirement may be interested in “re-purpose-ment” rather than retirement. Rather than going from 100% to 0% overnight, can workers remain “on the job” in a way that provides them with greater flexibility, but keeps them involved with the organization? This could be a win-win option that keeps valued employees and their knowledge and experience a part of the organization for a longer period and allows for a more gradual transition.
The pandemic was a reset for employers and employees alike. The uncertainly of 2020 put many employees in a “holding pattern.” Now, employees are reevaluating their work experience – and reflecting on what’s working and what’s not. And they’re more than prepared to make the changes necessary to improve what’s not.
Clearly, organizations face significant challenges to retain talent. The good news is that there are many things that organizations can do to impact their ability to retain. Organizations open to introspection and change will gain competitive advantage in retaining the talent required to thrive in the post-pandemic era.
If you’re struggling with increased turnover and could use some assistance, give us a call at 610-779-3870. Herbein| Mosteller HR Solutions partners with organizations every day and would love to talk with you to explore ways that we can assist. And stay tuned for the third and final installment in this blog series, focusing on attracting the talent you need.
