When an employee leaves an organization, a talent shortage is created. Handling a talent shortage can be challenging for the organization. Recruiting employees to merely fill vacant positions can lead to future talent shortages as employees leave the organization due to lack of job satisfaction. If, however, an employee is allowed to grow within the organization, it is likely that the organization will be able to retain the employee.
Hiring and Training Cost Organizations Time and Money
Most organizations spend a substantial amount of money on hiring and training its employees. Employees are considered assets when they diligently carry out their duties. If these diligent employees become dissatisfied and leave their positions, replacing them also becomes very costly to the organization. To retain talent, organizations must be aware of the reasons that can make employees stay. One of the major reasons employees stay with an organization is that they are satisfied with their position within the organization. This satisfaction may stem from competitive compensation, flex time, shared responsibility, and a stake in the organization such as profit sharing.
Overcoming the Talent Shortage
Organizations can help employees develop their own interests within the organization. This can be advantageous to the organization in obtaining its goals. In developing a motivational strategy in an effort to engage employee interest in the organization, organizations should first uncover what each individual employee requires. Compensation is not the one and only employee motivator. When an organization concentrates its efforts on employee motivation, it can reduce the time and costs associated with training and recruiting. Because retained employees spend more time within an organization, they contribute to increased productivity in the organization. By increasing productivity through employee retention, organizations may also maintain a competitive advantage.
The Focus of Retention
Since compensation is not the one and only employee motivator, retaining employees should focus on issues in addition to competitive compensation. One such issue is performance. Employees who feel that their talents are being utilized in the organization gain the confidence that they are succeeding in their careers. Employees who feel successful in their careers will develop a sense of belonging within the organization. Regular performance reviews is one way that organizations can provide employees with the feedback they need to assure personal and organizational objectives are being met at individual, team and organizational levels.
Another important factor to consider in retention is communication. A well developed means of communication gives employees an awareness of how their performance is contributing to the organization. Communication also gives employees the opportunity to share their feelings. Frequent communication between the employees and the management, other than performance reviews, helps employees develop confidence.
It is also important that management gains employee loyalty. As top management demonstrates loyalty to its employees, employees naturally develop loyalty and commitment to the organization. To demonstrate loyalty to its employees, organizations should be concerned with both the contribution the members make to the organization as well as recognize their personal successes through the work they have performed.
As a means of motivating employees to perform at optimum levels, organizations should find out what motives its employees. Motivated and satisfied employees are less likely to leave an organization. Employees need to feel that they are part of an organization. Employees who feel that they are stakeholders of an organization want to remain as part of that organization. They put forth their best effort to assure that the organization succeeds.
By Shirley J. Caruso, M.A., Human Resource Development