Employee turnover reached its highest level in almost 20 years in 1999, with an average monthly departure rate of 1.2% of the workforce, excluding layoffs, downsizing, and temporary staff departures. The surge in job turnover can be attributed to several factors. One significant factor is the strong economy, which enables companies to raise salaries and entice workers away from their current jobs with higher-paying alternatives. In addition, the traditional bonds between employers and employees have weakened in today’s work environment, resulting in lower levels of loyalty.
While money and perks may attract individuals to a company, retaining skilled workers requires more than tangible incentives. It is crucial for employers to meet employees’ demands by making adjustments in the workplace to cultivate loyalty and commitment. This includes empowering the workforce, offering career advancement opportunities, ensuring job fit, fostering a positive workplace environment, and above all else, exhibiting high-quality leadership.
Employee ownership promotes empowerment by allowing employees to take initiative and complete tasks without constant instruction. It is important to note that excessive control from managers hinders empowerment. Eitington (161) emphasizes that continuous improvement efforts are only successful when employees feel pride and ownership in their work. Empowerment encourages a strong sense of pride and ownership, motivating individuals to find more efficient ways to fulfill their responsibilities. Involving employees in decision-making through empowerment improves the company’s image, increases employee satisfaction, and reduces turnover.
At Home Depot, based in Atlanta, employees proudly and prominently display their names for customers to see as they maintain product aisles in the company’s stores. A smart organization fosters a sense of ownership among its employees, not necessarily in financial terms like Home Depot. By involving employees in the operation of their departments and business units, the company cultivates loyalty, commitment, and inspiration for optimum performance. Granting employees enough freedom and authority to carry out their responsibilities enables them to take ownership of the outcomes. When individuals perceive the significance of their work and find meaning in their tasks, they remain committed to the company and aspire to grow alongside it.
Secondly, it is crucial to establish clear career advancement opportunities to create a feeling of loyalty, trust, and commitment. Career plans, rewards for accomplishments, and support for further education are effective methods to assist employees. A career plan assists employees in determining their long-term objectives. It involves an agreement between the employer and the employee, outlining what the employee will receive in terms of skill development, such as tuition, time off, formal training, classes, and more. Moreover, these plans include milestones that indicate the achievement of learning goals. Recognizing achievements through either monetary means like a salary raise or non-financial means like a job title change to reflect the level of accomplishment is crucial in nurturing loyalty and fulfillment. Encouraging additional education not only enhances employees’ value to the company but also promotes a sense of well-being and satisfaction, ultimately leading to loyalty and commitment.
Starbucks Coffee operates over 400 retail stores, along with 26 major airport locations. They also have a successful mail order business and directly sell their products to businesses like Nordstrom, Barnes and Noble bookstores, and Delta shuttle. The company experiences an impressive sales growth of 65 percent annually. All Starbucks employees, internally referred to as “partners,” start their careers by completing twenty-four hours of classroom training at one of the company’s regional training centers. During this training, they learn various skills such as retail techniques, coffee brewing methods, customer service, and the art of pouring the perfect shot of espresso. These courses are taught by district managers, specialists, and training managers who have already completed the training and have at least two months of experience working in a retail store. Instead of leaving the company, employees are building long-term careers at Starbucks due to the increased training opportunities and possibilities for advancement that the company offers. This focus on professional development plays a crucial role in retaining employees.
The text highlights the significance of job fit in retaining employees. It illustrates the example of a chemical company that offers new scientists the opportunity to explore various research positions by means of the Research Assignments Program. Under this program, these scientists engage in multiple projects at different research laboratories and, upon completion, are transferred to a position based on their preference, performance, and the company’s research priorities. This initiative benefits new employees by enabling them to gain more knowledge about the company, build connections, and enhance their skills and expertise. By creating such a learning environment, employees remain engaged and enthusiastic about their work. Providing opportunities for growth and development is essential for fostering loyalty within an organization which subsequently leads to increased employee trust.
Corporate culture, company policies, and interpersonal relationships collectively contribute to shaping the workplace environment. The organization and its actions are driven by culture, which encompasses the experience of work and holds significance for members. This includes shared beliefs, values, rules, and rituals within the organization.
The goal should be to foster an environment that promotes and incentivizes openness, freedom, exploration, experimentation, collaboration among diverse individuals, teamwork, and the shared participation in creative experiences. It is important to acknowledge that a closed system, characterized by restricted entry and exchange of ideas, as well as the suppression of thinking, feeling, and imagination, hampers the development of essential creativity (Eitington, 607).
Creating a positive work environment that is stimulating and emphasizes employee growth is how a firm earns loyalty. Nowadays, loyalty is maintained through an organizational culture that promotes motivation, energy, and innovation.
Employees appreciate a workplace where their contributions are valued and encouraged. It is crucial to promote knowledge sharing and employee feedback in order to retain talented workers. Implementing an open door policy allows employees at all hierarchy levels to ask questions, give suggestions, and resolve conflicts. Creating a culture of collaboration ensures that everyone has a say in shaping the desired corporate environment.
A company that values interpersonal relationships promotes managers meeting with their employees, such as over lunch, to answer questions and exchange information. This practice helps foster a stronger connection between employee and employer, as the breaking of bonds between them is a contributing factor to high employee turnover. One-on-one meetings with managers and peers encourage employees to regularly discuss various topics like project status and training and development plans. Regular business meetings offer a great opportunity for obtaining employee input, making improvements, and addressing concerns proactively, thus preventing them from turning into problems.
Employees can become frustrated with company and administrative policies, especially when they are unclear or unnecessary. To reduce dissatisfaction, it is important for a company to ensure that their policies are fair and applied consistently for all employees.
Employee retention relies on various elements, including employee empowerment, enhanced training avenues, increased career prospects, suitable job placements, and a conducive work environment. However, the key driving force behind these factors is effective leadership. It is well-established that leaders play a crucial role in establishing and ensuring these aspects. Notably, research indicates that an employee’s immediate supervisor possesses the highest impact on their job satisfaction.
Organizational Skills Associates (OSA) is a management and organizational development company located in Madison, WI. They design employee surveys to assess individuals’ feelings towards their supervisors, work environment, availability of career advancements and training, level of information exchange, and more. According to Bob Morris, the president of OSA, these factors contribute to overall job satisfaction. It is worth noting that the common sources of satisfaction have evolved in recent years. Morris explains that company loyalty no longer plays a significant role, as people are now more loyal to their colleagues and supervisors. The satisfaction of employees generally increases when they have a supervisor who understands them and offers choices in their work environment.
Bob Nelson, a management consultant, believes that in order to maximize employee potential, a manager must establish a supportive work environment. This type of environment fosters creativity and encourages employees to take initiative in their roles. There are several techniques that a manager can utilize to create a supportive workplace. One approach is to ensure that employees feel secure and are therefore comfortable sharing both positive and negative news with their supervisor. In a safe environment, employees are more likely to take risks, and management provides clear feedback on the outcomes, whether they are positive or negative.
Opening up communication channels is crucial for an organization to achieve ultimate success. When employees can engage in open and honest communication with one another, it greatly impacts their motivation.
Another method for managers to retain skilled workers is by establishing and preserving trust and respect. Maintaining open communication is crucial, and this includes being receptive to employee feedback and ideas. Additionally, managers should set goals for employees, and acknowledge and celebrate their progress.
According to Eitington (281), individuals require jobs that are well-organized and meaningful, with a clear objective. It is crucial for them to comprehend the significance of their tasks and what defines success. Furthermore, workers need timely feedback to mitigate uncertainty and ensure they are progressing towards their goals. Achieving success serves as a major motivator. Ultimately, employees desire closure and a sense of fulfillment in their work.
A manager must acknowledge hard work and effort. This includes providing feedback to team members so they understand expectations, their current performance level, and how they are doing overall. Feedback must be honest and straightforward. Proper handling of corrective feedback and effective feedback is vital for maintaining transparent and open communication.
Implementing employee ownership, fostering career development opportunities, and cultivating a positive work environment are successful approaches to efficiently managing and retaining talented employees in today’s workplace. Recognizing that employees constitute a company’s greatest asset, it is crucial to nurture them. Skillful managers who effectively oversee their staff can earn their trust and dedication, leading to loyalty.
In today’s work environment, it is crucial to establish a partnership between managers and workers. The success of the employee/employer relationship relies on managers’ ability to energize, empower, support, and communicate effectively. Rather than merely organizing and analyzing, they should strive to create a positive atmosphere at the workplace by generating excitement. In my experience with the current work environment, I propose granting managers more autonomy in decision-making instead of constantly relying on upper management. Presently, managers are perceived as conveyors of negative information, acting as intermediaries between upper management and employees. This dynamic hampers creativity and discourages the need for managers to motivate employees, resulting in an unfavorable work environment.
When considering the retention of skilled workers, it is important to acknowledge that I did not mention salary, dress code, benefit packages, and child-care. Nevertheless, as mentioned before, these factors can successfully attract employees to a company but do not contribute to building loyalty and commitment. The key lies in enhancing the relationship between employer and employee. The leadership style plays a vital and immediate role in shaping this connection.
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