Retaining Your Top Talent

March 27, 2013

Now that the U.S. economy is beginning to show signs of life and companies are looking to hire again, it’s important to remember that this also opens the door for existing employees to explore their options elsewhere.

The last thing you want now is to lose your top talent to competitors. But if you don’t focus on the things that are important to these employees, you may find that they will indeed leave for greener pastures.

According to a recent CareerBuilder survey, nearly one-third of employers (32 percent) report that top performers left their organizations in 2012 and 39 percent are concerned that they’ll lose top talent this year. And while two-thirds of workers stated they are generally satisfied with their jobs, one quarter said they will change jobs in 2013 or 2014.

More than 3,900 full-time workers nationwide participated in the survey that was conducted online by Harris Interactive November 2012. The survey explored which job factors are most important to today’s workers.

“What determines job satisfaction is not a one-size-fits-all, but flexibility, recognition, the ability to make a difference and yes, even special perks, can go a long way,” said Rosemary Haefner, Vice President of Human Resources at CareerBuilder. “Being compensated well will always be a top consideration, but we’re seeing work-life balance, telecommuting options and learning opportunities outweigh other job factors when an employee decides whether to stay with an organization.”

A better job title is not important to more than half of workers (55 percent), however, upward mobility is key to job satisfaction and employee retention. Other things more important than job title include:

  • Flexible schedule – 59 percent
  • Being able to make a difference – 48 percent
  • Challenging work – 35 percent
  • Ability to work from home – 33 percent

Not surprisingly, nearly three quarters of workers reported that salary increases are the best way to boost employee retention while 58 percent pointed to improved benefits. Other actions workers said employers should take to reduce voluntary turnover include:

  • Provide flexible schedules – 51 percent
  • Increase employee recognition (awards, cash prizes, company trips) – 50 percent
  • Ask employees what they want and put feedback into action – 48 percent
  • Increase training and learning opportunities – 35 percent

Three areas I want to focus on include flexibility, being able to make a difference, and effective managers.

Flexibility
As I’ve written about previously, the flexibility to do the work when and where people want is an important way to stimulate employee engagement.

The premise of Results Only Work Ethic or ROWE is that employees are paid for results rather than hours worked. This provides both the freedom for employees and the results for employers. ROWE is based on the assumption that employees will do more and better work when given the latitude to decide how and when it is done.

In order to do this, of course, requires that these results are closely tracked and measured. If companies can do this and also trust their employees not to take advantage of the flexibility, then they should provide an opportunity for many to work at home.

Making a Difference
When it comes to being able to make a difference, employers need to continually remind workers the importance of their individual and collective contributions. Ensure that no matter the position, every person in every company knows how their contribution leads to the success of the organization. All of us can lose sight of this the further we are from the customer or the end result of our individual efforts.

Having a boss who reminds us of the benefit of our direct contribution can mean the difference between job satisfaction and the need to look elsewhere.

Effective Managers
Another thing to keep in mind is that people are attracted to and seek jobs at companies based on their reputation. On the other hand, people leave companies because of a bad boss. Although it may not show up directly in the research due to fear of retribution, many employees choose to leave a company not because they want better compensation, but because they don’t like their boss.

This dislike could be based on many factors, but it is worth looking into before it becomes an epidemic. Many managers and directors simply never got adequate training and instruction on how to be effective at leading people.

Talented people won’t let an incompetent or unfair manager stand in their way of job satisfaction, and will move on if necessary.

Ensure that your managers and directors know how to motivate and lead people in a way that brings increased productivity without sacrificing employee engagement. This may require training, mentoring, coaching or other interventions that are vital to keeping your top talent.

Don’t let your top talent leave now that the economy is improving. Instead, determine how you can provide what your employees need to increase overall productivity while also what they want to raise employee engagement. Then they will stay.

Telecommuting: When Does it Make Sense?

March 15, 2013

Yahoo’s chief executive Marissa Mayer recently declared that her company’s employees may no longer work from home and this has created quite a stir—both inside and outside of the company.

Telecommuting offers many benefits as it removes wasted time travelling back and forth to the job; it provides employees the flexibility to balance work and family around the individual’s schedule; and because there may be fewer interruptions than in the workplace, it allows for more focused attention that can lead to increased productivity.

Telecommuting also raises employee engagement. The more flexibility workers have, the higher their job satisfaction and the less likely they are to leave the company.

Research has found that they also work harder. A 2010 Brigham Young University study found that office employees work only 38 hours a week before they feel as if they’re neglecting their home lives. People who work from home put in up to 57 hours before they feel stretched too thin.

Nearly 15,000 Yahoos currently enjoy the freedom to do their jobs from home. And according to the independent employment research firm Telework Research Network, 20 million to 30 million Americans currently work from home at least once a week.

So what do we know about these telecommuters? According to the above study updated in 2011, the typical telecommuter is 49 years old, college educated, a salaried non-union employee in a management or professional role, earns $58,000 a year, and works for a company with more than 100 employees.

If all the potential telecommuters worked from home just half the time, the national savings would total over $700 billion a year including:

  • The typical business would save $11,000 per person per year
  • Telecommuters would save between $2,000 and $7,000 a year
  • The oil savings would equate to over 37% of our Persian Gulf imports
  • Greenhouse gas reduction would be the equivalent of taking the entire New York State workforce permanently off the road

The Congressional Budget Office estimated that the entire five-year cost of implementing telework throughout government ($30 million) would be less than a third of the cost of lost productivity from a single day shutdown of federal offices in Washington DC due to snow ($100 million).

So why can’t telecommuting continue at Yahoo? The answer could be manifold and surely includes Mayer’s need to reboot the company culture, cut deadwood and discipline the slackers who have taken advantage of the work at home policy.

Mayer was one of Google’s first 20 employees where data is used to measure just about everything, including people analytics. Now that Mayer is running Yahoo, she may be trying to instill this data-driven methodology to increase productivity, even if it means upsetting the company culture to do so.

While Google generates a whopping $931,657 in revenue per worker, Yahoo generates just $344,758. And Google actually encourages their employees to work in the office because, among other things, they say it generates a more collaborative atmosphere.

High technology companies have long been on the leading edge not only in products and services, but also in flexible work hours and employee benefits. Instilling the Results Only Work Ethic or ROWE model, for example, makes it easy to justify employees working whenever and from wherever they choose.

But there is something to be said for people working in the same physical space where serendipitous interactions can help stir creativity and innovation like nothing else. Bell Labs long ago designed their campuses around the management philosophy that innovation happens when you force smart people to collaborate in person where they can constantly bounce creative ideas off each other.

So how do you enable the benefits of telecommuting while retaining those of working in the office?

A Rational Telecommuting Policy would include:

  • Identify which jobs lend themselves to telecommuting. Those who work in the fast food industry certainly can’t telecommute. However, those who work in certain types of sales and customer service who need only a computer with a telephone certainly could.
  • Determine how to track and measure performance. Like any job, we should measure employee effectiveness in ways beyond how often they sit in an office cubicle and stare at a computer screen. Data can’t measure everything, but it can certainly contribute to overall accountability. This should be monitored regularly to avoid problems.
  • Hold telecommuters responsible. Anyone who regularly works away from the office like outside sales people need to check in frequently to make themselves visible. Telecommuters need to do this as well and keep up with virtual communication so they remain top of mind to coworkers and supervisors.
  • Demand that telecommuters be in the office on a regular basis. This is important because of the necessity of building rapport and fostering trust that is so vital to effective team building as well as increase the opportunities for collaboration and serendipitous creativity to spur innovation. Maybe it’s two days a week or maybe one day every two weeks, but consistency is key so others can plan around it.

Telecommuting offers many benefits to individuals, their families, the organization, and the environment. It’s not going to go away and I suspect Yahoo’s Mayer will find a way to bring it back to certain employees.

In the end I believe companies need to give employees the flexibility to work away from the office, yet measure and hold them accountable for the work they need to do. At the same time, they should demand that these employees work in the office at least part of the time, because this strengthens teamwork and encourages collaboration. And that’s good for the organization.