{"id":2697,"date":"2007-04-01T08:32:22","date_gmt":"2007-04-01T13:32:22","guid":{"rendered":"http:\/\/72.167.124.155\/tilt-uptoday\/?p=2697"},"modified":"2015-06-08T03:42:34","modified_gmt":"2015-06-08T08:42:34","slug":"employee-retention-requires-person-centered-plan","status":"publish","type":"post","link":"https:\/\/tilt-up.org\/tilt-uptoday\/es\/2007\/04\/01\/employee-retention-requires-person-centered-plan\/","title":{"rendered":"Employee Retention Requires Person-Centered Plan"},"content":{"rendered":"
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By Shawn Abraham, Corporate Recruiter, Structural Group sabraham@structural.net<\/em><\/p>\n

Recently graduated from a top engineering program, Robert had a career\u00a0on the rise within a large, international specialty-contracting firm. This bright young man successfully completed the company\u2019s three-year project manager training program and had become one of their most reliable and promising employees. He was rewarded with the responsibility of managing and coordinating multi-million dollar projects and everyone expected Robert to\u00a0be the firm\u2019s next superstar. So when Robert suddenly resigned his position\u00a0to return to his home in the Midwest, his decision shocked his coworkers, including his manager. Ironically, if the firm had known about Robert\u2019s interest in changing locations, the company could have considered relocation. Somehow, communication had failed and the firm felt the sting of losing a project manager who was expected to play an important role in the growth of the company.<\/p>\n

Like Robert, many good employees leave firms bewildered – wondering what went wrong. But companies don\u2019t have to wait for employees to make the next move. By taking a proactive approach to developing
\nan effective employee retention program, the anxiety of high turnover can be reduced. True, employee retention takes time, effort and resources, but the rewards can prove valuable.<\/p>\n

THE IMPORTANCE OF RETENTION<\/strong><\/p>\n

Retaining good employees is critical to a firm\u2019s long-term success. And in the engineering and construction markets, employee retention is especially serious since the job market is tight and competition\u00a0is fierce for top candidates. When you add the costs of recruiting and training employees, the financial impact alone is staggering. Some studies estimate that losing an employee costs a company 100 percent of that employee\u2019s salary. When reduced efficiency, lower effectiveness, workforce instability and lost productivity are added to the cost to find and train a new employee, the stakes become high.\u00a0A company simply cannot afford to ignore employee retention.<\/p>\n<\/div>\n

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Yet many well-meaning companies fail to invest in retention. The architecture\/engineering\/ construction (A\/E\/C) industry is fast-paced, and firms are scrambling in the day-to-day business of bidding, estimating and managing projects. Making a commitment to retention seems like an impossible task when managers\u2019 plates are already full. But when firms consider the long-term value of committing to employee retention, the effort is well worth the investment of time and resources.<\/p>\n

One of the major drivers for investing in a retention program is the financial impact of recruiting and training valued employees. No less important is the effect on co-workers. When people leave a firm, morale can be deeply impacted. Other employees may become fearful and uncertain about their status within the company. Such apprehension and insecurity can spread like\u00a0a virus, and soon turnover may\u00a0seem uncontrollable. High turnover also can give a firm an unhealthy reputation in the marketplace, making recruiting future candidates especially difficult. To avoid these pitfalls and to keep moving toward success, companies must be willing to devote time, money and resources to understanding and implementing diverse employee retention strategies.<\/p>\n

EFFECTIVE STRATEGIES FOR RETENTION<\/strong><\/p>\n

Understanding what motivates a person to look for another position is an important step. In creating\u00a0an effective retention program, compensation and benefits are certainly factors in a person\u2019s job satisfaction, but a caring workplace where employees feel valued is critical. Companies have found that the reason employees look is not always the reason they leave. Why do some firms do a better job of retaining employees than others? Keeping employees for the long\u00a0term doesn\u2019t happen magically or by good luck. Rather, firms must make\u00a0a conscious effort toward employee development. The key lies in the planning. Companies that establish a clear, definitive strategy for retention will benefit tremendously. Below are some strategies that are invaluable in a retention program.<\/p>\n

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Culture and Commitment:<\/strong> It is\u00a0a common misconception that retention is the sole responsibility\u00a0of a company\u2019s Human Resources (HR) Department. In practice, a successful program includes buy-in from all departments and levels of an organization. Owners, top executives and managers must jointly establish company operating principles that define its value system. Further, these leaders must take an active role in promoting, communicating and practicing this culture. A strong company culture is one that places value on people, fosters teamwork,\u00a0is forward thinking and encourages open communication.<\/p>\n

Additionally, it is important to point out that employees typically don\u2019t leave companies. Rather, they leave managers. A poor relationship with a manager is one of the primary reasons people become dissatisfied. One solution is periodic leadership training and retraining directly taught by company leaders. These\u00a0sessions can help all employees re-connect with the company\u2019s values and mission. Additionally, allowing employees to attend conferences and professional development seminars validates a keen interest in an employee\u2019s professional development — strengthening not only the individual\u2019s commitment to the company, but also the message that the firm cares about the long- term success of all employees.<\/p>\n<\/div>\n

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INTEGRATION<\/strong><\/p>\n

Welcoming an employee into your company may seem like an easy task, but many organizations fail to plan accordingly. Understand that integration must begin before the employee\u2019s first day of work. While a new job can be exciting,\u00a0it also comes with feelings of fear and vulnerability, not to mention the stress of fitting in, meeting new people, and learning new processes. An individual\u2019s first impression\u00a0can be lasting, so it is critical for companies to take a proactive approach toward easing their transition.<\/p>\n

Begin with a welcome letter from a direct supervisor, the owner or other recognized leader. The letter should share the company\u2019s vision, culture and outlook for the future, and it also should reaffirm the company\u2019s excitement about the hire. Also, it is ideal to have the employee\u2019s work space furnished, business cards and name tag ordered, office supplies stocked, and any other required tools ready for the first day of work. What better way to prove your company\u2019s enthusiasm to your new colleague? When the new employee arrives,\u00a0make it someone\u2019s job to greet\u00a0and welcome him or her. Provide introductions to existing employees and schedule lunches with a variety of people.<\/p>\n

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Having a buddy system or assigning a mentor to each new employee also is very helpful for easing tension or feelings of nervousness. Ideally, the mentor is someone who recently held the same position. Typically, new employees have numerous questions \u2013 some big and many small, and the mentor becomes a person the employee can confide\u00a0in, offering support and information needed for a smooth transition.<\/p>\n

An orientation program should not conclude after a series of PowerPoint presentations and paperwork on the first day. A truly effective orientation program is one that demonstrates\u00a0a long-term commitment toward employee development. Many firms have formal training programs that last several weeks to several years. Training programs vary in nature; but typically in the A\/E\/C industry, training programs are very job specific.<\/p>\n

In other industries, Fortune 100 companies have experimented with methods that educate employees about all aspects of a business. For example, many accounting firms and financial institutions provide training programs that allow new employees to work at every level of the company \u2013 from teller to assistant manager — for their\u00a0first two years before they can assume a management position. This broad experience gives employees an understanding of\u00a0the challenges faced in a variety of roles and provides a clear picture of department interaction.<\/p>\n<\/div>\n

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The A\/E\/C industry is learning from the successes of these broad-based training programs. Some savvy firms have initiated training programs that rotate new employees throughout numerous company divisions,\u00a0such as project management, estimating, business development, manufacturing, branch operations, detailing\/project coordination and engineering\/design.<\/p>\n

Whether job-specific or broad in scope, training programs do more than teach processes and procedures. They promote teamwork, allow employees to build relationships, increase employee support channels, illustrate potential career paths and broaden the individual\u2019s knowledge of the company and industry\u00a0\u2013 ultimately helping employees\u00a0feel valued and connected to the organization.<\/p>\n

Beyond welcome letters, mentors and training, it is also vitally important that goals be established for the employee within the first few months of employment. A manager should understand as early as possible what the employee wants\u00a0to achieve in the short and long term and begin establishing measurable objectives to reach those goals.<\/p>\n

OPEN COMMUNICATION<\/strong><\/p>\n

An open line of a communication between an employee and his or\u00a0her manager is a critical goal in ensuring employee satisfaction. A manager is the key in this element\u00a0of the retention plan, and ideally\u00a0he or she should receive training in communication and its importance to retaining employees. In addition to training managers in communication, implementing specific strategies will help facilitate open communication. A few ways managers can promote open communication include:<\/p>\n