Newsletter - March 2010
Engaging and Retaining Your Employees
March 11, 2010 - Bob Reilly
Many companies today are concerned about losing valued employees when the economy improves, to the point where those employees wish to explore “greener pastures.” Their concern is well founded. It is obvious that employees, especially those who are unhappy or who don’t see opportunities for growth within the organization, have “hunkered down” until the job market allows them to move on.
Many companies have responded to this potential crisis by seeking ways to provide their employees with opportunities for growth and demonstrating that they really care about their individual development. Providing a personal coach who assists the employee from a developmental standpoint, has often demonstrated to the employee that he/she is highly valued and perhaps identified for future advancement. Because the employee often values total confidentiality that allows them to be very candid in discussing matters that should never wind up in their personnel file, companies will sometimes introduce an external coach whose primary responsibility and allegiance is to the employee being coached. There is also likely to be more consistency of focus in weekly or bi-weekly sessions with the coach as a means of developing and engaging an employee who might otherwise have been lost to the organization. Coaching is not about “fixing people;” it is about personal growth and improving the bottom line. As such, it is an investment with the potential for a significant payback.
Additionally, some companies have established a career development process that enables them to retain a valued employee by allowing them to explore other career paths within the organization that they may wish to consider and apply for. This can be a means of retaining a valued employee rather than having them leave the company in order to join another organization. In some cases, the training and education may extend over a few years in order for them to become qualified, and it requires the patience and cooperation of the individual’s current and future managerial team.
Many individuals, whom our firm has assisted in their career transition, have suggested that while they were happy in their jobs at one time, they wound up leaving, some of them voluntarily, because of their poor relationship with their new boss. Research indicates that the manager is far and away the largest reason for the voluntary or involuntary departure of a previously valued employee. This suggests that the manager is an important player in engaging and retaining valued employees; a subject on which companies might wish to consider requiring a specific training program for all managers.
In addition to their desire to see the employee grow within the organization, there is another reason for the company’s emphasis on retention of valued employees.
Often times, the company will have made a significant investment in training and developing the employee over the course of their employment. This is a hidden financial investment that will never show up in their profit and loss statement but it is very real, especially when coupled with the cost of recruiting and developing a replacement. The total cost is huge!
Bob Reilly is a Managing Partner with OI Partners / Russell Montgomery & Associate, LLC, West Tennessee Region. He can be contacted at rreilly@oipartners.net or 901-763-1818.
