Prior to the recession, employee retention was a top concern of employers. Many organizations experienced a reprieve during the recession, simply because most employees weren’t looking for a new job. They were grateful to have work. But now what?
Will retention become an issue again now that we are seeing signs that the recession is turning around? I suspect so. Recent research by Watson Wyatt found that the recession has had widespread and unprecedented impact on employers and employees.
Employers have seen a drop in employee engagement due to the actions employers have taken in response to the economic crisis. Watson Wyatt found that overall engagement has dropped by 9% over the last year. The shocking news was that for top-performing employees, engagement dropped by 25%. And this will most certainly impact whether employees will stay or go.
Not surprisingly, a recent study by the Institute for Corporate Productivity shows that most firms are once again thinking about ways to retain talent. What are their plans?
- 18% of high-performing companies have already increased compensation levels (as compared to 7% or low-performing companies)
- 18% of high-performing companies plan to implement pay increases (as compared to 24% of low-performing companies)
But is offering money the preferred strategy? Companies report that they have been taking other action to reduce further turnover.
- 81% of all companies are increasing internal communication
- 77% have increased their focus on talent management
- 59% are focusing on succession planning
I have found a key to employee retention is helping employees become fully engaged so that they experience spirit at work – that sense that work is meaningful and fulfilling and an awareness of the contribution one makes.
Below are three ways to foster spirit at work used in our spirit-at-work program. More are found in my book Rethinking Your Work: Getting to the Heart of What Matters.
Help employees rethink about their work by:
- Getting to the heart of what matters about their work. Be clear about the deeper purpose of their work, what they are here for and the real point of their work.
- Seeing their work as an act of service. It is not so much about what we do and how we do it and how we think about our work.
- Appreciating their contribution. Understanding and appreciating how we make a difference through our work and celebrating our contribution helps us to be more enthusiastic and inspired.
These three ideas are at the core of my spirit-at-work program which we know positively impacts employee retention.
What is your organization or company doing to retain talent? Is it working?
Val Kinjerski, PhD, is a leading authority in the field of employee engagement and on the topic of “spirit at work.” A consultant, agent of change and inspirational speaker, she helps companies and organizations increase employee retention and boost productivity by reigniting employees’ love for their work. Check out her Spirit at Work Program and Inspired Leadership training at www.kaizensolutions.org. Val is the author of Rethinking Your Work and Rethinking Your Work Guidebook. Available now at www.rethinkingyourwork.com.