As a management consultant, I have seen some poorly conceived retention
policies at otherwise well-run companies. The philosophies underlying
these policies lack some basic knowledge of two things:
1. human nature, and
2. the changing world around us
Human Nature
Let’s start with human nature. The practice of management requires an
understanding of how people work. Successful managers can be forgiven if
they do not know how a particular machine works, or how to debit and
credit the general ledger, or how to write HTML code. But, managers must
know how people work. Specifically, they need to know how people work
well.
People are motivated by goals… their own! Organizations that help
individuals achieve their goals and career aspirations have less trouble
with retention. Are you helping your best employees achieve their goals?
I recently read some research findings that were just plain silly. The
findings you ask: Workers leave organizations for two reasons:
1. they feel mistreated or unappreciated
2. they can get more money/compensation from another organization
The researchers went on to say, most workers are unaware of more money at
other organizations until they feel mistreated or unappreciated. Did you
catch that? If not, re-read the “two” findings.
Here’s my interpretation: If you treat your workers well and make them
feel appreciated they will stay with your organization; money is not the
primary driver for workers leaving. Help you workers achieve their goals.
I believe “appreciative” workers are more motivated than “happy” workers.
Before you think this is more “soft” management talk, let’s look at some
“hard” facts. The average cost of hiring a new worker is one-and-a-half
times the worker’s annual salary. And, the average worker will need a year
to master his/her job skills.
The Changing World Around Us
As the world changes around us, we must change the way we think about
retention (and everything else). Gone are the days of the homogeneous
workforce. The world is being changed by unstoppable trends: globalization
and an aging workforce.
Future work teams will include three generations of workers (a 23-year-old
worker, a 48-year-old worker, and a 73-year-old worker), workers with
different religions and nationalities, and workers with dramatically
different life experiences.
The brain drain in developed countries can be slowed by retaining older,
highly skilled workers. But, that is not nearly enough. Companies must
compete globally for talent. (And remember what is necessary to retain
these individuals. We must understand their individual goals and career
aspirations.)
American companies that hope to depend on American talent exclusively will
fail miserably. American knowledge workers are losing their competitive
edge. Let’s look at some more “hard” facts:
1. In China, 42% of students earn undergraduate degrees in science or
engineering. In the U.S., the figure is less than 5%.
2. Only 70% of U.S. high school students graduate. The U.S. public
education system was recently ridiculed by a British news journal. When
you consider that the British public school system is arguably the worst
in Europe, Americans should hear this as a wake-up call.
3. Only 32% of U.S. students leaving high school qualify to attend a
four-year college or university.
Add to this some alarming facts about off-shoring. One organization
recently said it was off-shoring jobs to India not simply because the cost
was lower, but because the quality of work was better. The off-shoring of
high-level professional jobs (such as engineering and IT) is now a common
practice.
Conclusion
Organizations must do two critical things:
1. develop retention policies that recognize the need to understand the
individual workers’ goals and career aspirations, and
2. learn how to recruit and develop talent from around the world.
These are big changes for most organizations. Is your organization ready
for these changes?
About the Author
Dr. Mike Beitler is the author of "Strategic Organizational Change."
Get a free 7-part mini-course and learn more about the book at
http://www.strategic-organizational-change.com
