Employee Retention Key to Surviving Economic Recovery
Despite the snail’s pace at which the country is emerging from economic recession, many businesses have an optimistic outlook regarding 2010 hiring plans. One business survey by Intuit found that 44 percent of respondents expect to see their business grow in the next 12 months, and 44 percent expect to hire new employees during that same period.
That means companies without solid retention strategies could be faced with a sudden dearth of talent and intellectual capital as employees jump ship as new opportunities become available.
This is especially true when recession-induced poor employee morale has been allowed to fester, leading to frustration and burn out in current positions. Bad morale – and the sudden departure of key employees – can also negatively impact productivity and customer relationships, which may damage the company’s reputation as a great place to work. This can, in turn, impede future hiring efforts.
To avoid this, companies should evaluate their current retention strategies and enhance them as necessary to ensure employees feel valued and morale stays high. One smart strategy is utilizing consultants to ease the burden on core employees who are often managing multiple workloads in the wake of layoffs or unfilled positions. Bringing in short-term help also ensures deadlines and productivity levels are met.
Improving communications with employees and encouraging managers to provide more proactive feedback is a critical element of any retention program. It prevents employees from speculating or leaping to erroneous conclusions about their futures. It also provides an opportunity to inspire and motivate employees and show them that the company respects their opinions.
Other effective retention strategies include implementing or enhancing reward and recognition programs and offering mentoring, continuing education and other career development opportunities. Identifying alternative low-cost benefits such as flexible hours, concierge services, weekly staff lunches, etc. is also valuable.
Finally, design and implement a succession plan that helps employees realize their future and path for growth within the organization. This helps solidify employee loyalty while at the same time demonstrates the value the company places on their contributions.
Focusing on employee retention now helps ensure a company will emerge from the economic downturn in a position of strength – both in terms of intellectual capital and reputation. Competition, especially for top talent, will be fierce and a solid reputation will be critical to future recruitment success.
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Keeping Up With the Continuous Audit
SEC Approves Engagement Quality Review Standard