From time to time, I have always thought it a good idea to “plug in to” a review of how to retain our key employees. Many of the ideas that are listed in retaining key employees can be utilized by the ECA to strive to retain our own ECA members! There are good lessons that we may already know in this article, but it does not hurt to refresh our minds!
Retaining key employees is critical to the long-term health and success of your business. Managers readily agree that keeping your best employees ensures customer satisfaction, increased product sales, satisfied, happy coworkers, and effective succession planning and historical and institutional organizational knowledge and learning.
Why Employee Retention Is Important
Employee retention matters. Failing to retain a key employee is costly to the bottom line and creates organizational issues such as insecure coworkers, excess job duties that coworkers must absorb, time invested in recruiting, hiring, and training a new employee.
According to Gallup:
- “The cost of replacing an individual employee can range from one-half to two times the employee’s annual salary — and that’s a conservative estimate.
- “So, a 100-person organization that provides an average salary of $50,000 could have turnover and replacement costs of approximately $660,000 to $2.6 million per year.”.1
This is not only because of the lost revenues but also due to the fact that hiring and training a replacement is costly to your organization.
For your more senior positions, often the services of a headhunter are required which can cost your organization up to a third of the position’s annual salary. When these positions pay in excess of $150,000, this is a huge cost for your organization to absorb.
I know I wrestled with various ideas and efforts to engage our key employees at Kirkwood Bly, Inc. Some ideas worked pretty well; some fell a bit flat. We did attempt to do “Exit Interviews” and those are useful if conducted properly. How about doing “Stay Interviews”? Find out what keeps your employees staying at your firm and use that to cultivate your company culture and core values. Also-the work environment can be adjusted utilizing the information from Stay Interviews before it is too late, and a key employee has left to greener pastures. Develop and tweak the work environment to accommodate retaining those employees rather than doing a report on why a key employee went over to a competitor’s shop!
- Make certain employees know what is expected of them. Constantly changing expectations and putting modified work expectations on employees creates stress and uncertainty.
- Make sure your managers are quality people. Most employees leave because of manager strife rather than the actual work. Managers and supervisors need to be very clear on the following causes for employees to leave:
- Lack of clarity about expectations
- Lack of clarity about earning potential
- Lack of feedback about performance
- Failure to hold scheduled meetings.
- Failure to provide a frameworkwithin which the employee perceives they can succeed.
- Provide a means for an employee to speak freely within the organization. Solicit feedback. Listen. Feel free to criticize and work towards continuous improvement of the company, the manager, the culture and the employee.
- Allow the employee to use their skills. This may have to be done outside of their specific job duties, but it will go a long way to motivation of that employee!
- Provide methods of fairness and equity in compensation and promotion opportunities. Sounds simple, but sometimes friendships, family relationships, and personal opinion can trump good decisions on who gets what compensation and advancement opportunities.
- Employees must have the right tools to do their jobs. If you are expecting an operator to produce 400 lf of ditch a day, make sure he or she has the right excavator for the conditions! Duh. Again, sounds simple, but isn’t.
- Continuing education, seminars, and opportunities for the employee to grow are very important. Send them to additional exposure training. Let them learn and bring back ideas that might help your firm and that job production.
- Meet with your employees periodically. Get to know them, what is bothering them, what is going well for them.
- NEVER threaten an employee’s job or income. Even if layoffs are approaching, don’t say anything as it will make that employee nervous, and they will dust off their resume and start looking!
- Make them feel appreciated. Bonuses and commissions are good!
If I had practiced what I just wrote about better, I might still be owner of a construction company. But I didn’t. I hope you all do these things on a regular basis and your company flourishes from your greatest asset-YOUR EMPLOYEES!
That’s all folks!
Windsor Material Recovery Facility was approved by the DTSC in a variance to receive treated wood waste at their Windsor facility. This went into effect yesterday. Windsor Material Recovery Facility
590 Caletti Ave, Windsor CA 95492, 707-838-2597
Marin County News
College of Marin Honors!
College of Marin is happy to announce its ranking as the #1 community college in California and #5 out of 839 community colleges nationwide!
To read the article (courtesy of North Bay Leadership Council), click on this link—
Marin County and San Anselmo Reject Changing Sir Francis Drake Blvd Name-courtesy of the Marin IJ, here is the story-link
Marin County Flood Control Work Affected by Voters Rejecting Tax Measure.
Marin County flood planners are headed back to the drawing board after a tax measure that would have helped pay for a $6 million Santa Venetia levee project failed by three votes.
The Marin County Department of Elections staff hand-counted the mail-in ballots for Measure A after the machine-counted initial returns last week came up about 0.4% shy of the two-thirds majority needed for approval.
Story from Marin IJ here–
Napa County News:
Bill Dodd Co Authors bill to help fire victims. Courtesy of the Napa Register, here is the story-link
Napa to Allow Micro Wineries to do Wine Tasting. Perhaps there is some private work opportunities from wineries that want to revamp their facilities to take advantage of upcoming changes. To read the article courtesy of the Napa Register, click on this link–
Where and When Do YOU Get Vaccinated?
In Sonoma County-To find out what your vaccination eligibility is, go to link
In Marin County- To find out what your vaccination eligibility is, go to link
In Napa County-go to – link