Retaining Workers is Key to Success

By Rick Dacri, Dacri & Associates

Successful organizations retain their good people. They realize that to compete, they need people knocking on their door to get in—not to get out. Yet many employers subscribe to the myth that turnover is one of the costs of doing business.

After all, study after study shows that the American workforce is disengaged; that today’s workers are more focused on work life balance than just plain work; and that personal careers are more important than company loyalty.

Today’s generation of workers are clearly different from the previous, but that in no way means you cannot have an engaged, focused and loyal workforce. Most workers don’t sign up to work for a company with the idea that they’ll quit tomorrow. Sometimes that happens, but often times quitting has more to do with the workplace, than the workforce.

Great companies focus on engaging and retaining their workforce. They realize that people provide them their competitive edge.

A recent Gallop survey found that companies that engage their employees enjoy higher customer ratings; more success in reducing turnover; higher productivity and profitability; and better safety records.

Few executives would dispute this. In fact, most would say that employee retention is a high priority. Yet, very few have any plan in place to reduce turnover. As a result, they find themselves in a losing battle of competing with companies who understand that no turnover is acceptable and that when it does occur, they need to understand why it occurred, so that it will never happen again.

So why do people quit?

There are lots of reasons—all very specific to the individual and workplace. But in my professional experience, after conducting countless employee surveys, focus groups and exit interviews, one clear message has emerged: 90% of turnover can be prevented. Yes, some turnover is inevitable: people move away, retire, or have children. But most can be averted if managers were aware and employees were engaged.

Many themes emerge when talking to employees who have quit a job or who plan to do so soon: the job wasn’t what I thought it would be; my supervisor lied to me; they didn’t appreciate me; my career was going no where; I grew, the job didn’t; management was inconsistent and unfair; they worked us like dogs; and they never told us what was going on.

Note, nothing was said about money. Few quit because of money, though many will report that they took a new job because of money. If employers pay their employees fairly for the work they do (note I did not say that had to be the top payer) then employees will not leave for money. They will only quit for those other issues cited.

Money is not a major factor in retaining workers. It is a major factor in deciding to take a new job. After all, who takes a new job for less money particularly in this economy? When quitting employees do note increased pay from their prospective employer during their exit interview, employers must probe to determine the true reason the employees is quitting and not assume that the reason they are going to the new company is the same reason they are leaving your company.

Managers often happily accept the money line because it absolves them of all responsibility for the loss. After all, they believe, if people leave for money, I am powerless to stop them. Nothing could be more wrong. People rarely quit jobs for money but often quit bosses for better jobs.

Great companies develop retention programs. They value their workers; analyze every loss; develop unique methods to retain their people; and rewards managers for high retention rates. Great companies are also intolerant of managers who do no embrace this philosophy. Finally, great companies enjoy the fruits of their engaged, long service work force.

It is impossible to build a productive workforce while constantly replacing people who quit. When managers, executives and owners solve their turnover problem, then great things happen.

Rick Dacri is a human resource consultant, featured speaker at regional and national conferences, and author of the book “Uncomplicating Management: Focus On Your Stars & Your Company Will Soar.” Since 1995 his firm, Dacri & Associates has helped organizations improve individual and organizational performance. Rick connects with people in a positive and challenging way to offer practical solutions. He can be reached at 207-967-0837, or via email at rick@dacri.com