Retaining talented employees is one of the topmost priorities of employers today. Without the right people with the right skills, your business can’t consistently fulfill your customer’s needs. The challenge is not only to attract the best talent but also to retain them.

Rising opportunities for career development, lifestyle decisions, job mobility, unbalanced work life, poor mentoring and stress are some factors which influence and individual’s decision to continue or quite. Among other things, a retention strategy demands respecting employees’ concerns right from their entry into the organization till their retirement. It encompasses the organization’s ability to provide the best of work climates.

What Troubles Employees?

Employees expect from their employers to:

• Provide induction
• Create a good work environment
• Motivate them to work
• Train them
• Provide a suitable compensation package
• Implement reward strategies
• Counsel them
• Hold affable exit interviews

An appropriate HR strategy alone can satisfy employee expectations.

Where are companies going wrong in these times of change?

Too many companies approach the retention of key employees during disruptive periods of organizational change by throwing financial incentives at senior executives, star performers, or other “rainmakers”. The money is rarely well spent!

There is a better and less costly approach to employee retention—and one that will serve companies well as they merge, restructure, and reorganize to seize strategic opportunities as the economy picks up. It starts with identifying all key players, but targeting only those who are most critical and most at risk of leaving. These people are then offered a mix of financial and nonfinancial incentives tailored to their aspirations and concerns.

Three suggestions for Retaining Employees

• HR and line managers need to work together during times of major organizational change to identify people whose retention is critical. Yet too often companies simply round up the usual suspects—high-potential employees and senior executives in roles that are critical for business success. The “hidden gems” might be found anywhere in the company: a Business Development manager who is nearing his retirement age and is no longer on the company’s list of’ high potentials”. Even if the employees’ performance and career potential are unexceptional, their institutional knowledge, direct relationships, or technical expertise can make their retention critical.
• One-size-fits-all retention packages are usually unsuccessful in persuading a diverse group of key employees to stay. Instead, companies should tailor retention approaches to the mind-sets and motivations of specific employees.
• Financial incentives play an important role in retention—but money alone won’t do the trick. Praise from one’s manager, attention from leaders, frequent promotions, opportunities to lead projects, and chances to join fast-track management programs are often more effective than cash. Leadership opportunities are a powerful incentive in any sector.

When financial incentives are required, it is important to design them appropriately and use them in a targeted way.

Closing Thoughts

Targeting retention measures at the right people using a tailored mix of financial and nonfinancial incentives is crucial for managing organizational transitions that achieve long-term business success; it’s also likely to save money.