Retention, Retention, Retention!

We often hear the truism that the three most important factors in real estate are: location, location and location. A less well-appreciated truism is that one of the most important factors in profitability is one that bears repeating: retention, retention, retention. After all, how can you build intellectual capital, maintain an integrated, functioning workforce, and rapidly adapt to changing market forces if you're continually finding, selecting and training candidates? Capitalize on the investment you've made in the training of employees, and the value you receive from those employees' accumulated knowledge -- don't let the good ones go if you can possibly avoid it.

You will lose at least 6 months' salary -- and up to 18 months' salary, for knowledge worker positions -- to recruit, hire and train a new employee.

No company or manager can control all the forces that might cause employees to leave. Spouses relocate, taking your good people with them... a whole host of other reasons companies cannot control. And of course, if an employee simply cannot meet expectations, both you and that employee would be better served by their finding a new role, either with your company or elsewhere.

However, many, many valuable employees leave for reasons that we can, and should control if we know what's good for business.

Why Do They Leave? Managers might be surprised to find out why workers change jobs. What would your guess be? More money? Nope. Although 97 percent of workers think financial compensation is one of the most important aspects in the workplace, it is not the main reason they change jobs. A Spherion study asked 1,996 randomly selected employed workers what the most important reasons were to change jobs. They answered:

• Growth and earnings potential (30 percent)
• Time and flexibility (23 percent)
• Financial compensation (22 percent)
• Culture, work environment (22 percent)
• Benefits (12 percent)

More cited growth potential than any other single consideration. Just as many listed work culture and environment as important reasons to make a job change as listed financial compensation. Flexibility on time and location is of great importance to those aspiring to excel both professionally and in their family lives. Employers are now facing the challenge of generations interested in self-actualization in both their work and personal lives.

Some managers might be tempted to throw up their hands and roll their eyes, wondering, "Just how far am I supposed to go to keep people happy?" That frustration is understandable, given today's "do more with less" culture.

The good news is that it is well within your power to increase retention -- and the performance of employees who stay -- with some fairly simple interpersonal skills.

• Pay attention to the career arcs of your direct reports, because they do.
• Be flexible when you can be, any way you can be, so employees can have careers and lives.
• Check out salary trends for your industry, so you don't lose $20,000 trying to save $3,000.

Paying attention can really pay off.

Barr Corporate Success is a consultancy firm dedicated to producing amazing results for businesses from Mom & Pop shops to Fortune 500 corporations. If your business is experiencing retention difficulties, it's likely a sign that a change is needed. Barr Corporate Success can show you the way.

For more information, please e-mail Krissi Barr at:

krissi@barrcorporatesuccess.com

or see our website at www.barrcorporatesuccess.com