In attracting the type of employees that you wish to have, it is important that your company project professionalism from the start. All communication with potential employees throughout the recruitment process should be professional and project the culture of the company. Ideally you have a system of procedures and communication that make this easy to accomplish.
Employee retention really begins at the beginning when you decide to recruit new employees into your company. The people you have in your company now, and the people you decide to bring into your company are the key to your business success. Your company reputation, perception of your company by customers, vendors, referral sources and potential employees all rest largely with the impression and experience that they get from interacting with your employees. The use of best practices along the spectrum of the development of your people starting with recruitment and progressing through the processes of selection, orientation, performance management, and career path progression with appropriate recognition and reward paves the way for retention of the great team that is your key to success.
Really it all starts with your business plan and what you envision for your company in the future, or at least in the next three to five years. What kind of people and what skill sets will you need to help you accomplish that plan? Short-sighted hiring of people who will fill a key role in your company can cause unnecessary trouble down the road. I have encountered more than a few business owners who are hampered in their progress to meet their business goals by an entrenched employee in a key position who is not on board with the vision of the owner. This is perhaps a case where employee retention is not a plus!
The second opportunity for your company to foster retention is in the orientation process. Do you have an orientation process that makes the new employee feel welcome and part of the team? A good orientation process starts with the offer of employment and goes through the first weeks and perhaps even months of employment. Good communication is critical. The goals of the orientation process are for the new employee (and the business owner) to be able to confirm that they made a good decision, that there is commitment from existing team in integrating a new member and making them feel welcome, and ultimately that the new team member understands their role in the organization.
A good orientation process will help people to become productive in a shorter time, and they are more likely to stay with the company. The process helps them to feel valued by the company, and that this is a place where they can use their skills to contribute to the organization.
Good and consistent Performance Management is a third key factor in the development and retention of good employees. A performance management system should apply and be relevant to people at all levels within the company. Performance management starts with an organizational chart that shows the roles within the company. Each role should have a purpose which is defined by the work that is performed for customers and the organization. It’s best if employees can see a path to career progression within the organizational chart and the accompanying job descriptions for each role.
Good job descriptions are a must for companies that want have an effective performance management process. The job descriptions can, (and should) be used as criteria in selecting a new employee, as well as measuring performance in their current position, and evaluating whether they are ready to advance to a higher position. Job descriptions should state the primary purpose of the position, as well as the tasks, responsibilities, personal qualities, and core competencies that are expected in the position. It is also best to list the key performance indicators by which success in meeting these responsibilities and competencies can be measured.
Core competencies are those that are considered critical to carrying out the client service and organizational goals of the company. A good practice is to develop a list of core competencies for each role in several key competency categories such as technical skills, interpersonal skills, customer service skills, selling skills, administrative skills and leadership skills.
Employees who have clear expectations of performance, are assessed objectively against those expectations and understand what they need to do to progress in the company are more likely to feel that this is a company with which they can grow. Formal performance reviews are best done at least annually. This is also a good opportunity to have the employee develop a personal plan that lists their individual goals for learning new skills and developing their capacity to take on more challenging assignments. More informal reviews after completed projects throughout the year are also important in helping the employee develop and progress towards increased competency. Constructive feedback and coaching from the business owner and/or supervisor play a critical role in the performance review process.
A fourth opportunity to foster employee retention is to provide the opportunity for learning and development. Providing a learning culture that is congruent with the needs of employees to move along the career path as well as to advance the growth and development of your business itself results in the best return on your investment in your employees. Look for ways that you can include learning into your current company operations. How can you take better advantage of on the job training opportunities for example? Larger companies may consider implementing a more formal mentoring program to help employees progress along a career development path.
Of course, two of the most powerful ways to encourage people to stay with a company long term are recognition and reward. Most people think that money is the greatest motivator to keep good employees, and while it is certainly a factor, it is only a piece of what keeps the best people around. Things like money and good working conditions are factors that make working for a company acceptable, but most people are motivated more by having a job that is interesting to them and provides a level of challenge that keeps their interest. In addition, employees are motivated by increased responsibility and autonomy, and above all by being recognized for the contribution that they make to the company.
Leaders shape the culture of the company. As a leader, what are you paying attention to? What behavior and results do you measure and reward? The reward and compensation system should be one that is in line with the core competencies and performance management process. Link individual performance and business performance to increased compensation.
A good compensation package includes monetary reward in terms of salary and perhaps an incentive component as well as benefits, learning and professional development opportunities, and a culture that makes working enjoyable. A big part of a good company culture is one that recognizes employees for their contribution on a regular basis. Celebrate successes informally when they happen with a compliment or verbal acknowledgement of a job well done. Implement a more formal system of recognition with public acknowledgements at meetings or company events.
As you develop a plan to create a company culture that promotes retention, keep in mind that all systems you put in place should be in alignment with your business vision. Employee development and reward strategies are best when they are performance based and encourage the desired behaviors and results. Provide opportunities that motivate your employees to grow along a career path that rewards them intrinsically with interesting and challenging work and responsibilities as well as good remuneration. Your reward will be a loyal and committed team and a reputation as an employer of choice for attracting new talent to your organization as your business grows.