Strategies to Retain Your Best Employees

If an employee-company relationship is anything like a marriage, employers may want to keep their eyes open for the seven-year itch: when the parties begin to feel dissatisfied with their relationship and consider straying.

But for many employees, the itch can come around much sooner than seven years. Indeed, research from human resources consulting firm Kenexa shows that dissatisfied employees begin casting the job net as early as 18 months into an engagement. An improving economy can ignite the desire to change jobs or careers in even the most loyal employees. Those unhappy employees who have been waiting out the downturn see more opportunities, while those who have suffered benefits or wage cuts have run out of patience.

Employers who can “scratch the itch” save money, time, and effort by holding on to their best workers and not having to hire new employees, a costly endeavor.

Most employers know the telltale signs that an employee wants to stray: taking more vacation and sick days; coming to work in a suit and tie when the dress code is casual; spending a lot of time at the copy machine; closing the office door, or for cubicle dwellers, using the conference room for phone calls; and taking those unexplained long lunches. Perhaps the most bothersome sign is a sudden lack of interest in a normally engaged employee.

While there’s no doubt that turnover costs companies money in lost productivity and connections, sometimes losing an employee opens an opportunity to hire someone better matched or more engaged in the job. So before you attempt to hold on to your employee, think about whether it might not be best to just let the person go.

If you want to keep an employee, approach the situation head-on. While it’s not appropriate to inquire about personal issues, it is OK to open the door for discussion. Begin the conversation by simply asking whether the person is looking for a new job. Tell the employee directly that they’re valuable to you and the team, and ask what you can do to make them happier at work. Are they looking for a new challenge? Having an issue with a co-worker? It might be feasible to offer new responsibilities or to try to mend the relationship. Other reasons for leaving might not be fixable. Employees who really don’t love their work are rarely enticed by additional financial rewards.

To retain your best and brightest employees, try these strategies:

• Create opportunities for them to learn new skills and contribute to the organization.
• Even in small companies, look for ways to promote individuals. Add creative projects to otherwise rote jobs, or build in opportunities to earn extra money, such as bonuses.
• Create a team atmosphere, and encourage employees to make friends at work. They’re less likely to leave a place they feel connected to emotionally and socially.
• Recognize success; if you can’t afford bonuses, offer inexpensive rewards such as movie tickets or gift certificates.
• Set goals for individuals and the company as a whole. Reward everyone for reaching company goals.
• Communicate, communicate, communicate. Keeping secrets doesn’t create the kind of trustworthy environment that encourages employee loyalty. Involve your employees in decisions and plans for the future. Encourage them to come up with ideas for new products or services.
• Create traditions. Strong families get together for holidays to celebrate, and strong companies do as well.
• Create job rotations where employees can try out different roles and learn new skills.

In a lot of cases, employees may be ready to leave no matter what you do. When you hire the next person, make sure they’re the right fit for the job by asking about their long-term goals. If those goals have nothing to do with your company or industry, you may be looking at a short-timer.