Retention Strategies
Retention Strategies
(OP)
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?
Any ideas for retention strategies? What do your companies use?





RE: Retention Strategies
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)
RE: Retention Strategies
- 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).
RE: Retention Strategies
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.
RE: Retention Strategies
RE: Retention Strategies
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
RE: Retention Strategies
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
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RE: Retention Strategies
Chris
Systems Analyst, I.S.
SolidWorks 06 4.1/PDMWorks 06
AutoCAD 06
ctopher's home (updated 06-21-06)
RE: Retention Strategies
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?
RE: Retention Strategies
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
RE: Retention Strategies
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.
RE: Retention Strategies
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.
RE: Retention Strategies
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.
RE: Retention Strategies
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.
RE: Retention Strategies
-The future's so bright I gotta wear shades!
RE: Retention Strategies
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.
RE: Retention Strategies
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.
RE: Retention Strategies
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?
RE: Retention Strategies
RE: Retention Strategies
(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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Sometimes I only open my mouth to swap feet...
RE: Retention Strategies
Allow me to clarify. If my current employer paid me more than I can get elsewhere, in an environment that is better than I can get elsewhere, etc.....
I did not mean "matching an offer" after the fact.
"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?
RE: Retention Strategies
Nicely clarified!
RE: Retention Strategies
I think one problem is that virtually all workers have become commodities; yet workers have always been commodities. Unfortunately, this condition has become more visible in recent years. Where I work, we hear the corporate spiel about integrity, teamwork, etc but we all know that to keep our jobs we have to meet the utilization goal or we’re gone.
A company should truly value its employees because of their inherent dignity and employees should value their employer because work has and provides dignity, but those days are gone.
“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?” Managers sometimes lose sight of someone’s value (the only time I changed jobs solely for money was 1986; got a $6,700 raise; and 2 ½ years later my former employer asked me to come back, which I did because I loved working there) but sometimes employees have over inflated ideas of their value. I remember reading somewhere that a salary represents what one can do not what one has done. This is why it is important for managers to have frank discussions with their staff. Some of the younger engineers here (unknowingly) limit themselves because they see some work as beneath them or unworthy of their perceived talents.
Enough rambling, gotta keep my utilization up.
RE: Retention Strategies
It's obvious from the postings that there are a variety of opinions on employee loyalty.
In the old days (I have been told) there was an unwritten contract between employees and employers - work hard - get paid (+ advancement) and both stick together through thick and thin.
Today's employment environment is quite different. As we all know it's no longer: for better or worse, more like: for better and then forget it. The myopic focus on today's momentary bottom line has taken away the long range thinkers. This has been successful for companies: proof record Wall Street numbers, but it does present difficulties in attracting and retaining talented staff.
I have skipped around a little and never once was I asked, during my exit interview, why did you start to look elsewhere.....
The HR focus has never been proactive. Rarely have I seen an HR person experienced in a technical business.
In the past, I've been able to keep good people around me be continueing to see that their busy, happy with their assignments and able to fully utilize all the company benefits.
While this may not work for all, it did work for me.
jjf1
RE: Retention Strategies
I look at my current position in life and realize that I have it better than a lot of folks out there do. But I can't help but read about other fields and other areas and wonder how often in my career I'll be moving from one state (or country) to the next in search of a higher salary.
RE: Retention Strategies
"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."
What I get from that is it is important to hire people that fit into the current work atmosphere. Perhaps it is hard to keep people because people are being hired that should never bave been selected in the first place.
I can think of a similar situation where I am now. We were considering a new guy that was not popular here while on internship, especially with me. If he was hired, I probably would have left soon after and he would not have fit in and may have left soon after. So a year after hiring him we'd be searching for two new people.
Very intersting thread though, nice to see different perspectives....
RE: Retention Strategies
After the year, they decided not to do retentions anymore and I had not had a raise in 4 years. I was commuting long distance to work through heavy traffic.
I asked for a raise and promotion. They wanted me there to continue doing what I was doing and maybe a change in title in a year.
I moved on a few months later to my current IT job (from mech engineering): more $$, closer to home, less stress.
If they were to give me another retention, I probably would have stayed ... not sure. IMO, The savings in gas and stress outweighed the retention bonus.
I spend more time with the family, make more $$ (plus gas savings), better benefits, less stress.
my 2 cents.
Chris
Systems Analyst, I.S.
SolidWorks 06 4.1/PDMWorks 06
AutoCAD 06
ctopher's home (updated 06-21-06)
RE: Retention Strategies
Like many above has stated company/worker loyalty is at an all time low in corporate America (IMO). Their was a time companies offered a retirement plan that would take care of a worker after they invested 30+ years to the company. Now these corporations (Lockheed Martin, HP, <insert name>) have dissolved these in the name of stake holder porfits. I know all the bean counters will spout out but we created 401Ks so you have more control over your retirement....not the same thing. So now the worker has to maximize their salary but "job shopping" or "headhunting" for higher wages.
RE: Retention Strategies
I'd like to see the true cost of these non-financial strategies - lost opportunity time, cost of HR, etc etc.
For instance, once every 3 months I drive up to head office and we spend the day doing silly socially relevant things (teamwork exercises and the like, and then we go to a pub for lunch). So that's hmm, 32 hours times 200 bucks an hour, 6400 bucks a year that they have forgone in order for me to say hello to the one or two people I don't usually see. I haven't had that big a pay rise in a while.
Cheers
Greg Locock
Please see FAQ731-376 for tips on how to make the best use of Eng-Tips.
RE: Retention Strategies
I really like jjf1's comment about HR being proactive. One problem, though, is I find people will very rarely say they're leaving for money, even though in many cases you know for sure they are. If you press the question, they can't come clean because they already gave their other excuses...
I also think triplez's IT-related response was interesting. I can see how it has allowed people more job choices and firms more candidate choices (just like Ebay has given you all the world's garage sales instead of just the ones in your town), but I'm not sure it's really affected my situation, other than being able to bring in folks from out of state.
One endemic problem is that it's a specialty business and the local firms in the two cities are fighting over the folks that already know the business. These folks are worth more (initially) because they can be productive almost immediately. Our schedules are tight, margins are slim (usually 1.7 to 2.5) and productivity is paramount.
Get this - I found out this week that we are training one of the copy room clerks and an IT guy on AutoCAD!! Can you believe that? Granted, these two happen to be pretty sharp guys, but I just thought it was funny that we're dipping into overhead staff to pull some slack doing drawing pickups!! I'm trying to tell you - it's crazy here...
I also found out today that we've hired a new engineer and drafter. The engineer is from Israel and the designer is from an architectural firm - a CAD whiz, but will be quite shaky on what we do.
We lost another engineer this week - a 15 to 20 year guy that's getting a stiff bump in pay (again) to go back to the company he came from 6 months ago. The kicker? He spent three months before here at yet another company!!
Call me old school, or just stupid, but my Dad worked for the same company for 33 years and they did him right. I know those days are long gone, but 3 companies in 6 months? I just can't do it - even for a big chunk of cash.
RE: Retention Strategies
I didn't mention in my previous post something very interesting I found while researching my paper. Multiple job satisfaction surveys showed that those who are the most satisfied with their job are SLIGHTLY overworked and/or slightly underpaid. The thinking being that you feel like you are earning your pay and that contributes to job satisfaction. It sounds strange but I know that I do feel better after a day when I've solved problems and helped others.
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This is a little off-topic but someone above mentioned the old addage knowledge is power. Some of you have seen this proof but I like it so I'll repeat it.
Everybody knows that Knowledge = Power, Time = Money and that Power = Work/Time.
Now if we substitute our equations,
Knowledge = Work/Money OR Money = Work/Knowledge
From this new equation, we can deduce a few things:
1. If work is held equal, the more money you make, the less knowledgable you are
2. If work is held equal, the more knowledge you have, the less money you make.
3. If money is held equal, the more knowledge you gain, the harder you have to work
RE: Retention Strategies
Some people are just natural job hoppers, but some of us just really don't like to change jobs, especially if it involves moving as well (especially with kids in school, a social life, etc.)
"and the local firms in the two cities are fighting over the folks that already know the business."- that's the problem I alluded to above- they're using a very short-sighted approach rather than bringing new people in.
Seems like I remember seeing a Dilbert comic sometime back where the boss bemoaned the lack of loyalty and asked what had become of all the loyal employees- and was reminded that they had all been laid off sometime back.
RE: Retention Strategies
Some time ago I read an article in a magazine that was titled something like :"Job hopping, the new hobby for young Chinese" and it said that every year in Shanghai area, 1 million persons switch jobs.
Amazing!
RE: Retention Strategies
As a salary earner they still have to get the same work done regardless of the leave, so it should not make that much difference to productivity.
They will come to get used to this additional leave and wont want to lose it.
RE: Retention Strategies
RE: Retention Strategies
RE: Retention Strategies
Promotion/rewards based on performance improves morale. Giving companywide equal percentage distribution of bonuses/raises usually results in better performers to look the other way.
Being "fair" is the most important and most difficult. Once employees are convinced company is fair to them, they usually stay.
Lastly, turn-over is inevitable in any organization. Key is to retain the good performers that you can afford.
RE: Retention Strategies
It was a 15% pay cut where salary was concerned to take her new position, but in return she got an extra week off. The big thing was though if her department met there goals for output, sales and safety they got huge bonuses. Also if the company as a whole made there goals then they got another round of huge bonuses. The bonuses made up for more than any salary she was likely to see otherwise.
The interesting thing about this was it really created a team effort throughout the company. She was telling me that if her unit went down for whatever reason, It was not uncommon for other managers to send her people to help get it back online as quickly as possible and vice versa for her. Also they quite often would brain storm with other departments to help make everybody more effective and efficienct. The thing that really suprised me though was there was a lot of cross functional sales going on.
If somebody could justify they needed a piece of equipment or a person, all of the managers usually jumped on board with it pretty quickly because they knew if would be benifiting the company as a whole. It was also not uncommon for departments to share people. Another thing was they got rid of all of the inner company profit centers, i.e. where one department charges another department for work done.
This really suprised me coming from a company where departments are always bickering and putting each other down. We are constantly having people leave because they can't work with this person or that person.
In theory it really seems like a clever idea to retaining people. I guess to make this work though you have to have reasonable goals.
Zuccus
RE: Retention Strategies
But what about if the company went through a couple of nonprofitable years and people that "banked" on that bonus started to complain. I once took a job based on those these items....HR really painted a rosey picture but didn't tell me they had not given a bonus in a couple of years. Lucky for me, my boss made it right during my review.
You can please some of the people some of the time, but you can't please all of the people all of the time -- Abraham Lincoln
RE: Retention Strategies
Agreed, the only thing she didn't like was the fact alot of her income was based on sales efforts by people she have never and would never meet. Although the company has been doing very well for the couple of years that she has been there. So she hasn't experienced the down turn yet.
Zuccus
RE: Retention Strategies
corus
RE: Retention Strategies
Sounds like a good paper. I did a similar one a long time ago. Back then it was primarly Herzbergs theory. I liked it better than most theorys in OBOT because it seemed to fit with my experience. It sounds from what you wrote the basics are still pretty much the same.
When I jumped jobs I did so for more money and to gain skill. There's the $ 100 a week or so you may gain right away but there should also be experience and skill you gain that will pay off late. It may eve be valuable to you present employer. The experience you bring back in 6 months or a year may truly be worth more money to them.
I think it's more dangerous to have one years experience 10 times than 10 years of varied experience. Someday when you need a job the one years experience ten times may not be of interest to anyone. If you have to jump jobs to get it then jump. Unfortunately engineering is a career that requires constant learning. I read once that engineers are obselete in 5 years, the easiest way to learn is on the job.
RE: Retention Strategies
I think I know what you mean; that the good companies do have retention, it just isn't obvious (to us) how they do it.
Most importantly I would suggest that good companies know exactly how they do it. There are no accidents to success; in a good company nothing is left to chance.
When we see companies embarking on "retention" programs, Team building, investment in people schemes etc it is because they lost the plot long ago ad are in real trouble.
JMW
www.ViscoAnalyser.com
RE: Retention Strategies
RE: Retention Strategies
No wonder engineers are moving at that rate.
Somebody in the salary department forgot that this is a profession as as such you should reasonable expect your salary to increase as your experience increases (in real terms not just amount).
I have heard stories of graduates asking for the same salary as 10 year employees. It sounds like they must have accepted this level of raise.
RE: Retention Strategies
Yes, that is the sad truth that some companies do not take the initiative to pay their people competitive rates, or maybe they do not realize they are not paying competitive rates. Either way, the employee must make the intiative to get paid what they are worth. Bottom line: If you don't ask, you don't get. Just my opinion.