If the employment relationship is like a marriage; then talent retention is the hard work that goes in to keeping it strong. Just finding a compatible partner can be a difficult task but keeping those fires burning; maintaining that win-win relationship, requires hard work, honesty, creativity, and also a little fun.Keeping the brightest and the best is a perennial issue for management and HR departments. It doesn’t matter what kind of economy the world is facing, retention of employees is essential to maintaining client relationships and keeping recruiting and training costs in line. Losing an experienced employee almost always results in significant costs to organisations.
Attracting and retaining employees is as much a marketing issue as it is a management issue. Developing and promoting a positive organisation and reminding employees of the value of being part of it, is critical, says Lysette Randall, Executive Director and Head of Human Capital Management at Goldman Sachs’ Singapore and Taipei offices.
“We encourage our managers to make an important distinction between leading and managing,” she says. “The key focus is not just on the minds of our employees but also on their emotional commitment. Employee commitment is crucial to their engagement and hence retention.”
Creative benefits
Today’s high-performing employees are looking for more than just compensation packages. Once they have established their careers, they look for creative and individual ways to be rewarded for their efforts.
Coca-Cola South Pacific has a “pay for results” approach to its benefits scheme, rather than a “time in the office” measure. This means associates can partner with their line managers on when, where and how they work, allowing for the needs of both the company and the employee to be met. Typically, it allows staff the opportunity to flexibly manage both their family and working duties.
Sonya Ibrahim, Recruitment and Talent Manager, Coca-Cola South Pacific, says the policy has had a significant impact on the company’s talent-related costs. Turnover at Coca-Cola South Pacific was 21% for the year ending 2007, she says. It then dropped to 8% for the year ending 2008. “This is a great statistic as a result of the work that has been taking place to retain employees.”
Goldman Sachs encourages managers to think in terms of “re-recruiting” their people each year. This aims to reinforce the importance of each individual to the firm and forces managers to discuss and plan for long term career opportunities.
Randall says it also emphasises team spirit across all levels of the organisation. “Our sense of team work is something that is often commented upon by our new hires. We encourage accessibility to our senior leaders and feel that communication is the key,” she says.
Overseas opportunities are another important asset in the retention toolkit. Employees often appreciate the opportunity to pursue international careers and broaden their horizons with both long and short term abroad assignments. “This not only gives our employees the opportunity to develop as individuals and recognise when their skills may be suited to a change of role within the organisation,” says Randall. “Providing individuals with opportunities to work within one of Goldman’s offices in 54 cities globally can be a powerful retention and developmental tool.”
Sound pay packets
Establishing a sound compensation plan is one of the most important projects HR can undertake. While the firms HRM spoke with were cagey about their specific structures, they all agreed a performance-based plan should be designed to encourage employees to work toward the key goals of the business, while also meeting their own personal objectives.
To attract desirable employees, base pay and earning-potential should be competitive within the industry. The pay plan must be objective and fair to all employees. Rewards should be commensurate with contributions, with additional commissions paid for experience.
Recognising talent
Money is not always the primary motivator for employees. While everyone needs to be compensated, it’s often acknowledgment of jobs well done that keeps employees sticking with the same organisation. Experts advise that by recognising employees frequently – even with as little as a red tag (see below) or a sincere ‘thank-you’ – those achievements and efforts will be repeated frequently.
Headquartered in Singapore, FJ Benjamin has an interesting approach in its recognition initiatives. The distributor for clothing brands such as Banana Republic and Gap has “outstanding service” awards to recognise staff who have done exceptionally well in customer relations. Organised on a half yearly basis, CEO Douglas Benjamin personally presents prizes to the best performing sales and service staff.
“In addition, all complimentary letters received from our delighted customers are circulated to all our staff members to give due recognition to the staff who have provided heart-felt service,” says Tracy Kwan, Divisional Manager for HR.
Likewise, Coca-Cola Singapore has its “Coke Red Tag” programme which Karen Ho, HR Manager, says creates a culture of recognition in the workplace. “It is a way for the firm to say ‘thank-you’ to someone (that) deserves recognition for living the firm’s values,” she says. “It celebrates the everyday excellence that our people depict.”
Speaking up
Lack of effective communication from management is usually the greatest cause for employee dissatisfaction and premature departures. The best managers will communicate frequently with all employees – making it easy for them to talk about problems and concerns.
If it is going to work as a retention tool, communication needs to be regular, open and meaningful. Most experts argue for at least daily discussions between the employee and their manager. Of course, the larger an organisation becomes, the more difficult it is to keep in touch with all employees, especially where there are multiple offices in the picture.
Coca-Cola’s Hong Kong operations (which oversee its mainland China business) holds annual China business unit employee communication sessions, as well as quarterly town hall meetings. The Hong Kong region also sees monthly local staff meetings where the transparency of business objectives are discussed as well as the progress of new events or product launches.
Ho says publishing employee newsletters is another way for larger businesses to enhance communication. Alternatively, an organisational intranet can also be an effective internal communication vehicle.
Yielding power
Engaging employees in organisational decision-making is another important retention tool. By giving staff the authority to act in the best interests of the company, they are more likely to both develop their skills and want to remain with the company that gave them such opportunities.
Goldman Sachs believes appropriate managerial support is crucial in this effort. Accordingly, the bank provides specific training for its supervising staff. Courses such as “Driving Motivating and Promoting Retention” are regular fare on its training menu.
Health and fitness club Fitness First has its own school – the Fitness First Asia Academy – to train leaders in the brand’s culture, belief and management philosophy.
To date, the club boasts 44 graduates from across the Asia Pacific region. 24 of these are now in management positions, including 13 general managers of Fitness First Clubs.
Retention through fun
All work and no play make Jack a dull boy. If this childhood adage is anything to go by, employers and employees need to also have fun together. Experts say employees opt for work environments that are enjoyable. It’s too easy to get burned out in a “strictly business” work environment.
With this in mind, companies worldwide have designated employees as party planners. Alongside their normal duties, these are the ones in charge of getting people together in inclusive and enjoyable events. Hugh Goldthorpe, an executive with Owens and Minor, a Virginia-based medical supplier, takes these duties very seriously. He’s even adopted the official job title of “head cheerleader”.
Closer to home, staff with the FJ Benjamin Group make a point of eating together regularly. Every Friday, the company allocates an extended lunch break, allowing colleagues to mingle and build informal relationships. Through these enhanced relationships, it hopes to further enhance its retention rates.