Retention Strategies 8

[swearingen]

The many local firms in two neighboring cities near where I work are battling over a seemingly fixed set of resources. People are jumping ship every month to 3 months because the firm next door flashes more money. It's getting really crazy and job continuity has gone out of the window.

Any ideas for retention strategies? What do your companies use?

 

[ctopher]

My last company had the same problem. They tried the retention bonus. Those of us that signed for it had to stay a year, but we quit soon after.
For employees to quit, so many so soon, there is a problem with management and hidden problems with the company.
IMO, good companies don't need retention.

Chris
Systems Analyst, I.S.
SolidWorks 06 4.1/PDMWorks 06
AutoCAD 06
ctopher's home (updated 06-21-06)

 

[tripleZ]

My company has this problem primarily with production employees, so the manner in which you keep people will likely be different. But, for reference:
- Goofy stuff like ice cream days in the summer months really seems to help morale (plus it's 130 F on the floor with the furnaces running)
- We actually installed air conditioning in the furnace areas to keep the employees more comfortable. Sure, it's 80 F, but when it's creasing 130 in July that 80 degrees seems cool. It does cost us more to run the business as a result, and I think people realize that and appreciate it.
- Strange little activities now and then: salsa days, random cookouts, 'Mum raffles (I'd spell the flower's name, but I'm sure I'd butcher it), etc.

For salaried staff, it's a little more difficult. We probably only have guys jumping ship every few years, mostly for pay increases. But what helps us draw people is the work environment we encourage. If most of your line folks are happy and upbeat, it does make the day go quicker. So maybe focus on intangible stuff that might be appealing to your staff? My dad would be laughing at me right now (old school businessman), but the intangible stuff does seem to have an effect.

If you find an answer, you've solved a problem plaguing business owners for years (and likely years to come).

 

[KENAT]

Personally I find a lot of the 'goofy stuff' done by our 'morale organization' patronizing.

To me nothing says appreciation like money in the pay packet or equivalent (e.g. comp time, some flexibility in hours, better benefits, profit sharing bonuses, extra leave etc). This is especially true if there's some reflection between performance, so long as this is fairly judged and not a personality contest.

This combined with reasonable work conditions (as in reasonable stress levels/work load, competent management, reasonably stable future etc) should be enough.

Intangibles like a subsidized canteen etc are nice but 'treats' worth a few cents each are pretty pathetic as are many employee recognition schemes.

Our company spends a ridiculous amount on a Christmas Party at a fancy hotel each year. I'd rather see most of my share in my pay packet and just have drinks and snacks the last day before Christmas and get sent home a few hours early.

However since most of these cost real money the been counters would probably veto it.

Just my thoughts.

 

[boffintech]

Personally I find a lot of the 'goofy stuff' done by our 'morale organization' patronizing. Being part of the field staff I can appreciate that sentiment. Nothing like coming back to the office after a long day of site work and finding the office staff engaged in some ridiculous activity. I always think, so this is what they do all day.

 

[bvanhiel]

Our office's moral boosting excercise was to pimp my car during my vacation. I made the mistake of parking it in the company lot during my two week trip. They decided it would look better painted purple with spinner hubcaps, a foot tall spoiler, hood scoops, etc. They had a lot of fun. Driving my car now makes me feel special... in the short bus kind of way.

I agree that moral boosting activities at big companies are almost always off target. I think individual consideration needs to go into how to make each person feel part of the group. It's not the size of the award/reward/bribe. It's the thoughtfulness with which it is given. I'm not sure if this is even possible at a big company. I sure haven't seen it.

-b

 

[Ashereng]

Let see, the guys are leaving for more money.
You want to keep the guys.

Hmmmmm. I don't know, but I'm going to go out on a limb here and guess...give your guys more money?

Sorry about the sarcasm (had this not too long ago with an employer).

Yes, some will say that money isn't everything. And I agree. For those guys, you need to give them what they want. If they want A/C in the workplace, then give them that. If they want icecream, then that works too. If they want their ride pimped, I guess whatever beats their drum.

If you want to retain employees, then you need to give them what they want. Otherwise, if someone else does they will leave.


"Do not worry about your problems with mathematics, I assure you mine are far greater."
Albert Einstein
Have you read FAQ731-376 to make the best use of Eng-Tips Forums?

 

[ctopher]

But, after the first time, the employees will expect the retention $$ again. If not, a good chance they will leave.

Chris
Systems Analyst, I.S.
SolidWorks 06 4.1/PDMWorks 06
AutoCAD 06
ctopher's home (updated 06-21-06)

 

[Ashereng]

Chris,

The employee usually leaves to another company. If you pay them enough, that another company won't surpass, then you will retain them, all things being equal?

If someone offered me 20% more to go across the street, all else pretty much equal, there is a good chance I will.

If someone offered me the same amount to go across the street, all else pretty much equal, ther eis a good chance I will stay.

"Do not worry about your problems with mathematics, I assure you mine are far greater."
Albert Einstein
Have you read FAQ731-376 to make the best use of Eng-Tips Forums?

 

[jpankask]

Loyalty to the company has flown out the window because companies, for the most part, are not loyal to their employees. If you want to retain your employees, you need to give the supervisors and managers the flexibility to reward employees with what motivates them. For some this is more money, for others company paid business trips periodically. Still others are perfectly happy knowing that they do a good job and that their contributions to the company are appreciated.

I wrote a report in grad school on job satisfaction. Bottom line is that if someone is satisfied and happy with their job, it will take a lot more money to make them leave. If I am unhappy, I would leave my job for very little raise. If I am happy, it would take probably a 25% raise before I would even consider leaving. At some point, compensation will become an overriding factor but then you are either grossly underpaying that employee or that company desperately wants that person.

I recently read that employers today are having trouble with employees because they don't understand the motivations behind the diffent generations. Basically, we have 3 generations in the mainstream workforce today. One generation is concerned with maintaining a lifestyle, one generation is concerned with quality of life (away from work) and the last generation is looking to get all they can and make their mark on the world. A one-size-fits-all approach to compensation/benefits and employee retention is not going to work when these employees are mixed.

In my research for my paper, I came across some standard perks that workers expect in todays business world and some unusual but growing perks to consider. A few in particular caught my eye; workday napping, telecommuniting once or twice per week, bring pets to work and subsidized BMW leasing were some of the more unusual ones. Here are some of the benefits that make me happy and keep me from jumping ship.
1. Flextime!!!!!
2. Low-cost health insurance
3. Interesting work to offset my mundane tasks
4. Relevant training/education opportunities
5. Good compensation (notice not top of the line but very good for this area)

A few of the things at my job that make me satisfied and not willing to jump ship (unless the money train comes rolling in):
1. Supervisor who lets me know periodically (and randomly-it does no good if it's happens every Friday morning, etc.) that he appreciates the job I do and that I am doing a good job. Regular feedback is imperative to job satisfaction and knowing where you stand. We have quarterly performance planning meetings to discuss performance and progress since last meeting.
2. No micromanaging!
3. Public recognition for extra efforts. We have an awards system in which supervisors and managers can give varying levels of awards based on the effort and impact to the plant. This is usually accompanied by some sort of announcement at a meeting or something.
4. Safe work environment-physically and emotionally
5. Willingness to at least consider requests I have that may be out of ordinary.

Sorry this is so long but I am very passionate about this subject as I have been in positions that I have loved and others that I didn't care about so much so I have a lot to say. Hope this helps you some.
Jason

 

[bridgebuster]

"Loyalty to the company has flown out the window because companies, for the most part, are not loyal to their employees" - How true; and it's worse when they pretend to care about you. Unfortunately, the bean counters have taken over. Now, it's all about utilization and accounnts receivable; there's little appreciation of engineering as an art.

jpankask makes several good points. Interesting how things have changed: In the late 70's I took a management course and the professor said that the more a company gives you the worse the job. His point being that work in and of itself contributes to happiness and fulfillment. I found that to be true. My first job was with a government agency - great benefits and pay - but the job sucked. After two years I went to work for a small company - good pay, few benefits - but it was the best place I ever worked.

 

[BelspringKen]

We have flexible schedules here - that is, to a point.
The work still has to get out the door.

I have worked at firms who held silly parties and activities (and generally these were held while I was busting my butt to get something completed - by myself) when actually rewarding or recognizing individuals would have helped with morale and retention.

Its important to me to have some input into the process rather than having it dictated to me. A verbal pat on the back from time to time is probably the cheapest way and one of the most effective ways to keep people happy.

 

[swearingen]

Some good suggestions, but the climate is rougher than you think. All of the local companies do things like have birthday cakes once a month to celebrate all of the birthdays in that month, hotdog days, and all sorts of other cutesie stuff (yes, I'm in the camp that thinks that this is superfluous). Every local company offers flexible work schedules as well - 4/10's, 4/9's and a 4, whatever; as long as you get the work done. Benefits vary, but are made up with salary at the ones that have the lower benefits. They also all pay salaries that are far above anything else in the nation in this industry, according to what I've seen in the national literature. It seems that my peers, 11-15 year senior engineers, make more than most PRINCIPALS in the rest of the country! And that's just base salary - we also get straight-time overtime pay and the designers get time-and-a-half! It's ridiculous. Note, I'm not complaining about the salaries, because I'm benefitting from it, but it's still ridiculous and gives me pause about the future. What happens when this dries up and we've grown accustomed to those ballooned salaries? I'm banking the excess...

I guess it's more of an economics issue than an engineering or management one. There is a severe shortage of talent and a great demand. One comment earlier said that they received bonuses and then promptly left. I'd LOVE to keep someone for a year and then actually have an idea of when they might be leaving so I could plan for it. We've got people jumping after a few months, some only weeks at a time! It just kills productivity and continuity on projects.

One thing we're looking at is recruiting strongly from other states and countries. We've outsourced work to Mexico and had some success with it, despite the problems involved. I wouldn't be against having two Mexican engineers help me out for 3 to 6 month stints when I know I can count on them for that long. We can pay them well AND cover their expenses for what we pay in local salaries.

 

[eddieng27]

swearingen,
jpankask has summed it all up. But you need to know the "other why" the people are leaving. Money yes, but what else? Ask them. An "exit interview" that's sincere and meaningful should shed some light. People leaving a firm is a fact of life, but whole-sale evacuations likely indicate other severe problems. Also informing young engineers about the profession is a good idea. If you have a good company (all around ... good work, good people, good management, good clients, good policies) a long-term employee could reasonably expect to "stay even" in terms of salary in the work place. Jumping to other companies results in a "step increase" in pay rather than a gradual and steady increase. I do not know about others, but I really do not enjoy changing work environments routinely. I prefer longer term relationships with fellow workers and clients.

 

[sms]

Give them a sign on bonus, then write into their contract that they must stay a year, or they have to pay back the bonus. That will keep them a year anyway....

-The future's so bright I gotta wear shades!

 

[JStephen]

"What happens when this dries up and we've grown accustomed to those ballooned salaries? I'm banking the excess..."

I think you've just demonstrated half the problem right there. You seem to realize that when there's a downturn in the economy, your pay will go down, or your job will be gone. IE, you realize that your company has zero loyalty to you. And, probably everyone else knows it, and they are taking a fiscally-motivated strategy themselves: Get every penny now while the getting is good, because your job may be gone a year from now.

I don't know of a real good answer, other than to have started doing things differently 20 years ago.

Some time back, while looking for work, I learned that (a) 99% of the people applying for a job already have a job, and (b) companies will complain about a shortage of qualified candidates, while at the same time making zero effort to get people qualified- each company assumes their employees will be brought up to speed at the competitor. It's a bad set of conditions, which it seems you are now seeing from the employer's side.

You might also consider to what extent employee loyalty is valued. Being one of the longer-serving employees at a company ususally doesn't count for much.

 

[EddyC]

Here are some things where I work that make folks want to leave:

a) Certain employees being paid significantly more than others who do the same job.

b) Favoritism on account of race, religion, etc.

c) Managers who think meeting code is optional.

d) No mentoring of junior employees by senior employees.

e) Being sent to dangerous environments without escort or protection.

f) No distribution of office supplies to employees.

As others have stated, its not always about money but many times its about being treated like a human being.

 

[Ashereng]

There is no formula to retention - everyone has their own reasons.

If you offer them what they are leaving your company to go to, chances are, they will stay? I still think this is the truth.

For me, a birthday party isn't really important at all - at my age, it may be a fire hazard! For someone else, maybe a birthday party does the trick.

If you want to keep someone, or everyone, the only solution is to meet what they are leaving for.



"Do not worry about your problems with mathematics, I assure you mine are far greater."
Albert Einstein
Have you read FAQ731-376 to make the best use of Eng-Tips Forums?

 

[SomptingGuy]

Make sure your place of work is nice (not US Detroit, not UK midlands) and they will stay!

 

[ScottyUK]

If (when?) I leave my current employer for a better deal elsewhere, if my current employer said they would match that deal I would still walk. Why?

(1) If they can afford to pay me the better rate, why have I had to hold a loaded gun to their head in order to get it?
(2) The other company has been up front about what I am worth. They value me enough to pay to get me. Honesty counts.
(3) The higher rate is a starting point with the new company. With the current one it is an end point.

That's not to say that my current employer can't keep me, just that they would have to do a lot better than merely matching the other company's offer.

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