Published March 2004

Halt turnover by showing workers they’re valued

Q. A fellow departmental manager and I were discussing “employment churn” — the rapid movement of employees looking for better jobs — and agreed our company was particularly vulnerable to this when hiring picks up. We also agreed that we alone could not necessarily reverse the effects of some of the company-wide policies that have contributed to this desire of many employees to move on. We also agreed that we might be able to deflect departures from our units by taking unilateral steps to motivate our employees to stick with the company. Is it possible to take such steps within a company whose culture is not known to be friendly to employees?

A. In a word, yes. But with a major caveat. It will be one of the most difficult management tasks you have faced.

Managers often express shock when a company experiences significant departures of long-term employees for jobs at other organizations. In some cases, the move may have less to do with economic benefits — salary, stock options, bonus incentives, matched 401(k)s and even more exotic prerequisites.

The sad reality is that many companies are run like a resort. They furnish fluffy robes and pillow mints but fail to truly understand the real needs and desires of their employees.

Many companies are finding that the true path to success is by building sincere, committed relationships with their employees. They realize while it’s easier to offer a long list of economic enhancements, embracing the hearts and minds of their employees is what will pay off in the long term.

A good comparison is a healthy marriage, a relationship that has a long-term focus, where partners feel bonded, secure and loved; where dependability, predictability and compromise are present; and the union is viewed as pluralistic (“we” as opposed to “I”).

People want to feel that they belong (within the organization); that they are safe and secure, fulfilled in the work they perform; that they feel good about themselves and their leaders; and that they are fairly compensated.

High turnover can be virtually guaranteed in an organization that separates managers and employees, uses layoffs to balance budgets, provides little training or growth opportunities and fails to appropriately celebrate, recognize or reward individual and employee team successes.

Creating a committed work culture begins by adjusting attitudes. This is easier said than done because it’s hard to preemptively show a “bottom line” benefit for instituting initiatives like throwing occasional celebration parties or forming a committee to deal with employee burnout.

You may also be asked to explain to senior managers the purpose of conducting periodic employee surveys, forming employee “care” committees, including employees in hiring interviews or instituting an employee-based rewards and recognition program or other low-cost initiatives pioneered by such successful “employee committed” companies as Southwest Airlines, Capitol One and SAS Institute.

The bottom-line answer, of course, is to save the company the cost of replacing experienced, productive and talented people who departed to find an employer that views employees as assets, not a drain on the cost side of the ledger.

Eric Zoeckler operates The Scribe, a business writing service with many Snohomish County-based clients. He also writes a column on workplace issues, which appears in The Herald on Mondays. He can be reached at 206-284-9566 or by e-mail to mrscribe@aol.com.

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