Struggling with Retention Policy? Seeking Advice from HR Experts

Could anyone help me with a retention policy?

Thank you.

Hi,

Here is some guidelines that one can apply in the Organisation to improve the retention:-

1. Show employees that you have an interest in their success

60 to 70 per cent of workers do not feel that their companies help them to develop their career. Managers of successful companies are acutely aware that even the most brilliant business model will not work without skilled individuals motivated by a culture of management concern.

2. Allow employees the room to develop their skills

Many employees find themselves trapped in a narrow job function so mission-critical that the organisation cannot afford to move them. Frustrated employees, unable to satisfy their need for growth, resign, leaving holes that disrupt the company's workflow in the short term. The company also loses strong performers who could have filled other, more important, roles over the long term.

3. Give employees a clear idea of the long-term goals of the company

Three quarters of unhappy employees do not believe that their company knows where it is going. Companies should endeavour to change their perceptions by communicating effectively to employees the direction it wants to take. This should be followed up with behaviour that is consistent with what they have told employees!

4. Measure soft skills

Many companies say they value people and train their management team to cope with people issues. Yet these same managers are rewarded based on their technical skills and financial results. Too often, people skills are not rewarded and no measure exists to evaluate them. Employees get the message that, “people skills don't matter” and so neither do people.

5. Fight turnover with smart training

Two principles can help companies score big retention wins through training. Firstly, keep it relevant. Some firms act as though any training is better than none. From the employees' perspective, that is not true. If training is not relevant to their jobs they feel it is a waste of time. Secondly, use training to broaden experience. Companies too often provide training that merely reinforces old skills instead of building new ones.

6. Develop your management team

People see good bosses as the wind beneath their wings, and employees who lack confidence in their bosses will leave the organisation sooner rather than later. A key retention strategy is to weed out marginal managers. Replace them with managers who can craft a compelling game plan, communicate it effectively to their teams and deploy initiatives that are consistent with company strategy.

7. Weed out poor performers in non-management ranks

Managers often under-estimate how strongly employees resent the presence of underperformers within their work group. The productive employee often has to take on more work to compensate for the poor performance of others, and they can feel that management is either turning a blind eye to unjust practices, or does not have sufficient interest in what goes on “below decks” to notice any disparity in working practices amongst employees. When the slackers are weeded out, both morale and retention improve.

Regards,

Amit Seth.

Thanks for the advice. We have a problem with retention at the moment. There is a limited number of people in the industry, and our employees are very sought-after. This is mainly due to our development practices, resulting in frequent turnover as employees leave for companies offering much higher salaries after spending some time with us. It is quite frustrating. Any advice?

Hi,

Employees trained by your company leave you just because other organizations offer a huge package.

Every company has standard policies for the pay structure. If you cannot provide a significant salary increase, you can always motivate employees by offering promotions, introducing new designations (if not in the company's designation list), providing rewards, bonuses, appreciation, and certificates of appreciation.

In short, both monetary and non-monetary rewards are essential.

If, after offering these incentives, an employee still decides to leave, start looking for a backup. It's crucial to trust your employees, but if they betray that trust, it's necessary to let them go.

The reality is that it's challenging to find loyal employees in today's competitive market. Conduct surveys to understand employees' perspectives, and if possible, consider hiring an outside consultant to identify reasons for employee turnover.

In essence, there is no single foolproof way to retain employees. Amit may offer some additional suggestions.

Regards,

Chaitali
Surat, Gujarat

Hi,

I totally agree with Chaitali. You may only use your available resources to keep your employees motivated. I mean you can't go beyond the policy of your company.

Above, I have given some guidelines to follow to increase your retention. Do practice those guidelines; surely, it will make a bit of a difference in your organization.

Anyways, thanks, Chaitali, for giving such a useful suggestion.

Regards,
Amit Seth.