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STAFF & BENEFITS MARCH 20, 2000


What Makes Employees Want to Stick Around?

It isn't always money. Sometimes, a kind word is all anyone needs

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And you thought dealing with customers was a hassle. With unemployment at a 4.1%, employees are at least as picky. So employers are throwing around cash, benefits, and perks like never before to attract warm bodies. But once you've snagged them, how do you keep them from being lured elsewhere by a better deal?

The simplest answer is to make your workplace too attractive to leave. It sounds expensive, but it doesn't have to be, says Richard Hadden, partner of Contented Cow Partners, an employee-retention consulting firm in Jacksonville, Florida. Why? Turns out that most of what really matters to workers requires more common sense than cash.

1. Communication. Start with a question, says Hadden. Literally ask each of your workers what they require to become more committed to the company. In his consulting practice, Hadden has asked hundreds of employees that question. Guess what? Perks and amenities consistently rank low on the wish list. What tops the list is open communication. "People want to read mysteries, not live them," Hadden says. Employees want to know what the company is trying to do, where it's going and what it stands for. You may think that you've communicated this information before, but you might be surprised. Ask a few employees to outline the firm's three highest priorities. "If you ask six people for three priorities and you get 18 answers, you've got a problem," Hadden says.

2. Appreciation. It's astonishing how often something so basic is overlooked. "Employees tell us that they never hear the words 'thank you' from their bosses. People are hungry for appreciation," says Roger E. Herman, founder of The Herman Group, Inc. a Greensboro (N.C.) consultancy that specializes in workplace issues. It costs nothing, but can yield signifcant benefits.

3. Training. This one can cost a few dollars, but it's worth the investment, says Anne Pasley-Stuart, President and CEO of Boise (ID)-based Pasley-Stuart HR Consultants. One of the most common reasons employees leave is because they don't believe they're developing professionally. In today's knowledge-based economy, the best people pick up skills and capabilities wherever they can and move along when they get bored. Pasley-Stuart suggests providing learning opportunities at every level of the organization - either in the form of formal seminars, subsidized educational opportunities or internal training programs.

4. Making a difference. Does your company exist for any reason besides making a buck? If your employees answer no to that question, you're going to have a retention problem. "It's tremendously important for people to feel like they're doing meaningful work, and are making a difference," says Hadden. This isn't about making the world a better place on some abstract level. It's about building a shared sense of mission in the workplace. Hadden suggests including people who have minimal client contact to client meetings, as well as getting support people into the field to see how real people are using your product or service.

5. Making life easier. You'll make your employees happy (and boost their productivity) if you eliminate some the nagging distractions that pull people away from their jobs. One low-cost method is to become an information resource. For example, day care is a perennial problem for parents. Pasley-Stuart suggests spending a couple of hours creating a directory of good day-care centers in your neighborhood. You could do the same with elder-care facilities, an area of increasing concern. You can also make it easier for employees to do their personal chores -- for example, by arranging to have a dry cleaner stop by the office once a week. Flexible scheduling also is important.

A caveat: none of this will work if your heart isn't in the right place. "You can't artificially create a healthy, positive, supportive work environment," says Wayne Outlaw, head of the Outlaw Group, a Mount Pleasant (S.C.)-based staffing consultancy. Outlaw observes: "It has to be genuine -- and that comes from the core values of the business owner and the company." And the truth is that there's no substitute for competitive salaries and benefits. But all things being equal, if you truly respect and value your employees -- and show them that you do -- you've got a better shot at having them sticking around for a while.


By Alison Stein Wellner


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