As a management consultant, I have seen some poorly conceived
retention policies at otherwise well-run companies. The
philosophies underlying these policies lack some basic knowledge
of two things:
1. human nature, and
2. the changing world around us
Human Nature
Let?s start with human nature. The practice of management
requires an understanding of how people work. Successful
managers can be forgiven if they do not know how a particular
machine works, or how to debit and credit the general ledger, or
how to write HTML code. But, managers must know how people work.
Specifically, they need to know how people work well.
People are motivated by goals? their own! Organizations that
help individuals achieve their goals and career aspirations have
less trouble with retention. Are you helping your best employees
achieve their goals?
I recently read some research findings that were just plain
silly. The findings you ask: Workers leave organizations for two
reasons:
1. they feel mistreated or unappreciated
2. they can get more money/compensation from another organization
The researchers went on to say, most workers are unaware of more
money at other organizations until they feel mistreated or
unappreciated. Did you catch that? If not, re-read the ?two?
findings.
Here?s my interpretation: If you treat your workers well and
make them feel appreciated they will stay with your
organization; money is not the primary driver for workers
leaving. Help you workers achieve their goals. I believe
?appreciative? workers are more motivated than ?happy? workers.
Before you think this is more ?soft? management talk, let?s look
at some ?hard? facts. The average cost of hiring a new worker is
one-and-a-half times the worker?s annual salary. And, the
average worker will need a year to master his/her job skills.
The Changing World Around Us
As the world changes around us, we must change the way we think
about retention (and everything else). Gone are the days of the
homogeneous workforce. The world is being changed by unstoppable
trends: globalization and an aging workforce.
Future work teams will include three generations of workers (a
23-year-old worker, a 48-year-old worker, and a 73-year-old
worker), workers with different religions and nationalities, and
workers with dramatically different life experiences.
The brain drain in developed countries can be slowed by
retaining older, highly skilled workers. But, that is not nearly
enough. Companies must compete globally for talent. (And
remember what is necessary to retain these individuals. We must
understand their individual goals and career aspirations.)
American companies that hope to depend on American talent
exclusively will fail miserably. American knowledge workers are
losing their competitive edge. Let?s look at some more ?hard?
facts:
1. In China, 42% of students earn undergraduate degrees in
science or engineering. In the U.S., the figure is less than 5%.
2. Only 70% of U.S. high school students graduate. The U.S.
public education system was recently ridiculed by a British news
journal. When you consider that the British public school system
is arguably the worst in Europe, Americans should hear this as a
wake-up call.
3. Only 32% of U.S. students leaving high school qualify to
attend a four-year college or university.
Add to this some alarming facts about off-shoring. One
organization recently said it was off-shoring jobs to India not
simply because the cost was lower, but because the quality of
work was better. The off-shoring of high-level professional jobs
(such as engineering and IT) is now a common practice.
Conclusion
Organizations must do two critical things:
1. develop retention policies that recognize the need to
understand the individual workers? goals and career aspirations,
and
2. learn how to recruit and develop talent from around the world.
These are big changes for most organizations. Is your
organization ready for these changes?
About the author:
Dr. Mike Beitler is the author of "Strategic Organizational
Change." Get a free 7-part mini-course and learn more about the
book at http://www.strategic-organizational-change.com
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