Winning Employee Retention Tactics for Managers [webcast]
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You’ve invested a lot of time and money recruiting and hiring the right talent for your small to mid-sized businesses (SMB). The last thing you want to do is let all that hard work go down the drain when an employee leaves for another opportunity. But, many SMBs ask, “How do I keep the talent I worked so hard to recruit?” Borrowing “big company” tactics can help you build a truly effective employee retention program. In this Slideshare, you’ll learn: - Eye-opening statistics on employee attrition’s business impact - How to be an effective manager that keeps teams happy - Tangible tips, tricks, and examples of employee retention programs companies have used
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Winning Employee Retention Tactics for Managers [webcast]
- 1. Winning Employee Retention Tactics for Managers August 25, 2016
- 2. Hi! It’s nice to meet you. #hiretowin Stephanie Bevegni Content Marketing Manager LinkedIn linkedin.com/in/stephhowellbevegni Suzanne Tran Sr. Marketing Manager LinkedIn linkedin.com/in/suztran
- 3. Today’s session will cover: #hiretowin a. Business impact: How poor employee retention can make or break SMBs b. Areas of focus: 5 core areas to focus on to achieve higher employee retention c. Inspirational retention examples: See tips, tricks, and creative employee retention programs
- 4. Business impact: How poor employee retention can make or break SMBs #hiretowin 1
- 5. 5#hiretowin expensive and can drain limited resources $11 billion lost annually Entry: 30-50% annual salary Mid: 150% annual salary Senior: 400% annual salary Sources: Bloomberg BNA, ERE Media Turnover is 1 of 3 new hires quit 6+ mo.
- 6. 6#hiretowin 2.5x to stay at work late 5x likely to refer candidates 27% more likely have “excellent” performance by company 2016 Global Recruiting Trends, Temkin Group, Gallup reduce costs plus increase productivity/revenue Employee retention & engagement programs can 59% less likely to look for a job in next 12 mo. 45% more likely to report high adaptability during change 21% higher productivity
- 7. Areas of focus: 5 key areas #hiretowin 2
- 8. 8#hiretowin Top 5 reasons employees turnover 1 2 3 4 5 Mismatch between job and hire Misalignment or change in the original job description can lead to mistrust Lack of work / life culture 29% of American employees resign due to work overload and lack of healthy work-life balance (Cornerstone) Below market compensation packages 66% of employees whose offices provide free snacks or beverages report being extremely or very happy with their current job (PeaPod) Feeling undervalued 75% of employees receiving at least monthly recognition (even if informal) are satisfied with their job (BambooHR) Stunted growth + lack of coaching, guidance, and leadership 51% of employees report they receive “no input” or “input only once in a while” from superiors on how to perform better in their roles (Mercer)
- 9. Inspirational programs Tips, tricks, and real examples that will inspire #hiretowin 3 Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth
- 10. Consistent and honest communication about the job Problem #1: Mismatch between job and hire Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth Information Collection 1 bit.ly/2016_SMB_Toolbox Writing The Job Description bit.ly/JobPostingKit 2 Phone Screening bit.ly/2016_SMB_Toolbox 3 In-person Interviews bit.ly/30InterviewQuestions 4
- 11. Information Collection Drill down on the core elements of the job Information Collection Answer key questions to describe the role (See InTake Form) Review with key stakeholders (Sanity check) Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth
- 12. Writing the Job Description Include all of the important elements Writing The Job Description Include all pertinent information (See checklist) Use other examples with similar roles for inspiration Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth
- 13. Phone Screening Stay consistent and look for a “good” to “great” fit Phone Screening Review the job description (align with job description) Be honest, open, and upfront about any potential changes in the role Ask the right interview questions Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth
- 14. In-person Interviews Team alignment In-person Interviews Provide team with the job description and candidate resume/LinkedIn profile Ask what does the candidate know about the role Highlight/prescribe key areas to focus during interview Be honest, open, and upfront about any potential changes in the role ROLE-BASED: a.Understanding of the role b.Case examples c.Greatest success d.Example of what he/she would do differently e.Assign a homework assignment BEHAVIORAL: a.Ability to lead b.Judgment & prioritization c.Achievements d.Work relationships e.Accountability f.Growth g.Integrity h.Collaboration Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth
- 15. Encourage and communicate work/life balance Problem #2: Poor work/life balance Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth 1. Keep a pulse on burnout 2. Embrace flextime & telecommuting 3. Bring home to work 4. Promote health initiatives 5. Lead by example (e.g. stay to work hours, leave at reasonable hour) Communicate Work / Life Balance
- 16. Encourage and communicate work/life balance Inspiration Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth Sources: The Muse Ascend HR Corp embraces flextime, telecommuting, and home to work
- 17. Encourage and communicate work/life balance Inspiration Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth Sources: The Muse Fetch Robotics encourages time out for office play
- 18. Encourage and communicate work/life balance Inspiration Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth Sources: The Muse Windsor balances work/play with community service (as a team)!
- 19. Encourage and communicate work/life balance Inspiration Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth Sources: The Muse Plated fosters a health and wellbeing
- 20. Compensation can be more than just salary Problem #3: Less than competitive compensation package “Our strategy is to hit 75 percent of what the market is paying…” Susan Strayer LaMotte Founder of Exaqueo. Competitive salary: Includes salaries that are “at market” or above Establish salary ranges to match open roles Research and analyze competitive salary ranges & what your competition is doing Consider incentive pay (reward top performers), bonuses, equity, sign-on bonus, and/or commissions Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth Insurance benefits + 401K: Try to offer dental, vision, and medical insurance Evaluate if company can cover 100% or a portion of costs or consider voluntary benefits Consider covering employee or employee + family Consider add-on benefits like long-term disability, 401K, etc. Employers can deduct contributions made to employees’ 401(k) accounts
- 21. Compensation can be more than just salary Problem #3: Less than competitive compensation package Paid time off: Average employer provides 9 paid holidays Consider reserving all major holidays with buffer days Allow 1+ “floating holiday each year Some companies have Discretionary Time Off Indirect compensation benefits: •Flexible working schedules •Elder / child care •Moving expenses •Tickets to events (ball games, concerts) •Office food/snacks •Recognition and rewards for performance •Annual trips •Office toys / games (ping pong table) •Amenities Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth
- 22. Compensation can be more than just salary Inspiration Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth AddThis gains benefits from free food/drinks in more ways than one
- 23. Sources: The Muse Omnigon plans monthly outings and hosts happy hours Compensation can be more than just salary Inspiration Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth
- 24. Elevate and celebrate your team members Problem #4: Feeling undervalued Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth 1 2 3 4 Be sincere Offering your sincere gratitude for their efforts. Publicize achievements Spread the word about the individual / team’s accomplishments in meetings or to the entire company Highlight work towards the bigger picture Share information about the business and how their standout efforts impacts the company’s overall goals Treat your team members every once in awhile Whether it be an individual or team effort, treat them to dinner, lunch, an outing 5 Management alignment on workplace environment Office culture has a big impact on feeling valued. Managers can set the style for a culture of appreciation and elevating/celebrating their team
- 25. Elevate and celebrate your team members Inspiration Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth UC Davis Medical Center Uber Celebrate career achievements
- 26. Elevate and celebrate your team members Inspiration Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth Google Act-on Software Show public displays of appreciation Allow employees to announce big wins
- 27. Elevate and celebrate your team members Inspiration Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth Facebook Starbucks, PlayStation Honor work anniversaries Create award programs
- 28. Encourage growth with your support Problem #5: Lack of growth, coaching, guidance, and leadership 1 2 3 4 Regular employee pulse check-ins Collect feedback from the employee on how he/she is feeling, what is needed, questions, etc. Career development Conduct bi-annual career development sessions to discuss and detail career growth plans and development needs Support employee goals Building new skills and experience can motivate teams. Consider organizing training and development opportunities, paying for Lynda subscriptions, have a ½ day for learning Mentorship programs Senior staff can share their experience to help junior employees gain new leanings / skills and it also helps make senior staff feel valued Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth
- 29. Encourage growth with your support Inspiration Job mismatch Lack work/life Poor compensation Feeling undervalued Stunted growth a. Think of team members as allies on a tour of duty b. Have courage to discuss that someday your team may decide to work outside of the company c. Discuss how you can work together to transform their career and the company while they’re with you d. Model honesty by communicating your own dreams and aspirations e. Ensure your team is building their skillset on their tour of duty
- 31. 31#hiretowin 5 areas to focus on Summary 1 2 3 4 5 Prevent any misalignment between job to hire Be specific about the job role and responsibilities and open / honest about any changes that could happen Encourage work / life culture Unhappy and burnt out employees result in a continuous revolving door that costs more money and time Attractive compensation packages Offer above industry average OR add creative benefits to sweeten the package Make employee recognition a priority Elevate and celebrate your employees which makes them feel valued and helps prolongs their tenure at the company Stay consistent with coaching, guidance, and leadership Encourage career growth and development with consistent coaching, guidance, and open communication
- 32. LinkedIn Talent Solutions offers a full suite of tools to help you find, attract, and hire top candidates. Contact us to learn more. Call 855-655-5653 or visit bit.ly/contacttalentsolutions #hiretowin
Editor's Notes
- My name is Suzanne Tran and I’ll be your moderator today. I am a Sr. Marketing Manager at LinkedIn with a focus on helping hiring managers and talent professionals of small to mid-sized businesses (SMBs). Specifically, I work with a team of analysts and research specialists to develop educational tips, tricks, and other recruitment resources that help SMBs find, attract, and hire quality candidates for their growing company. I’m thrilled be be joined today by Stephanie Bevegni! …
- Business impact: How poor employee retention can make or break SMBs Areas of focus: 5 core areas to focus on to achieve higher employee retention Inspirational programs: See tips, tricks, and creative employee retention programs from real companies
- Stephanie take us away
- The impact from a poor or non existent retention program can be significant to growing SMBs. Because Turnover is not cheap. It requires tons of time and resources to backfill positions and the cost to do so can paralyze SMB growth According to Bloomberg, $11 billion is lost annually due to employee turnover (Bloomberg BNA) And according to ERE, 1/3 of new hires quite their job after 6 months (ERE Media). Can you imagine all that time and effort wasted to find, interview, and hire 1/3 of your workforce gone in 6 months?!? That would be a huge hit to your company’s productivity! Replacing employees of varying seniority levels can vary but the bottom line is that it’ll all cost you money whether it be time spent sourcing and/or funds on recruiting support. For example: Cost of replacing entry level employees: 30-50% of their annual salary (ERE Media) Cost of replacing mid-level employees: 150% of their annual salary (ERE Media) Cost of replacing high-level or highly specialized employees: 400% of their annual salary (ERE Media) For those SMBs who have a larger population of millennial employees in your workforce… Millennial turnover costs the U.S. economy $30.5 billion annually (Gallup)! The take away here is that, turnover is a major problem but if solved, you can reek the benefits of doing so.
- This is a sample of what types of benefits your SMB can gain from implementing a solid employee retention program that keeps your employees engaged and happy. These statistics of highly engaged employees are eye-opening. Businesses who have highly engaged employees… Achieve 21% more productivity (Gallup) which can easily sky rocket your company’s momentum over competitors. In the SMB world, growing and producing quickly is a key element to success. For SMBs, funds are tight and finding highly effective and cost efficient ways to attract top talent is like hitting the lottery. Good news is, employee referrals is one of those top ways to hire top talent with little cost. Highly engaged employees are more than 5x as likely to recommend a friend or relative apply for a job at their company (Temkin Group). They’re also 27% more likely to be reported as "excellent" performers by their organization. Imagine having a full workforce of “excellent” performers simply by apply some efforts of keep then engaged. In many instances, working longer hours for big projects isn’t new. These employees are 2.5 times more likely to stay at work late if something needs to be done after the normal workday ends without being disgruntled. 45% more likely to report high levels of adaptability in the presence of change. And, SMBs are known to undergo constant change as plans evolve and priorities shift. 59% less likely to look for a job with a different organization in the next 12 months. This gives you 12 months to gain traction and productivity without massive interruption from turnover which can’t be incredibly disruptive and could significantly slow down the company’s productivity/momentum. For example, If not prevented, turnover can happen frequently causing more wasted time and recruitment funds 1 out of 3 new hires quit their job after 6 months 41% of respondents say they will remain at their company for less than 2 years while 37% say they will stay for 3+ years and 22% don’t know how much longer they’ll stay at the company. (2016 GRT) But, you may be wondering, where do I start? Where should I focus?
- I suggest starting with understanding the problems that cause employees to leave their company and then double click into each to brainstorm ways you can solve for those problems. In this session, we’ll explore the 5 common reasons most people leave a company.
- At a high level, here is the top 5 reasons people leave their company but in the following slides, we’ll go deeper into each. #1: Mismatch between job and hire Misalignment or change in the original job description can lead to mistrust and mistrust often time leads to turnover #2 Lack of work / life culture Burn out is one of the culprits of why employees leave a company. In fact, according to Cornerstone, 29% of American employees resign due to work overload and lack of healthy work-life balance (Cornerstone) #3 Below market compensation packages And, with competition being fierce, having an attractive comp package is part of keeping employees happy and retaining them. But, it doesn’t always have to be about base salary. You could couple an “at market” salary with other benefits like food, culture, etc. As an example, according to PeaPod, 66% of employees whose offices provide free snacks or beverages report being extremely or very happy with their current job (PeaPod) #4 Feeling undervalued Everyone feels appreciated if their work is recognized. The more GENUINE ways you elevate and celebrate your team the happier they are with their job. BambooHR reports that 75% of employees receiving at least monthly recognition (even if informal) are satisfied with their job (BambooHR) #5Stunted growth + lack of coaching, guidance, and leadership And finally, when an employee feels he/she does not have growth opportunities, guidance, and confidence in leadership, this is another reason why they look to leave their role. Mercer notes that 51% of employees report they receive “no input” or “input only once in a while” from superiors on how to perform better in their roles (Mercer). That’s more than ½ of a workforce!!! Interestingly, once employees consider leaving, 42% said they might have stayed if their employer had done something. So for you on this call, let’s explore ways you could “do something” and reduce or prevent future employee turnover. http://www.directrecruiters.com/candidate-article/top-10-reasons-why-good-people-quit/
- In this section, we’ll go into ideas and programs that solve for the 5 pain points just discussed with hopes that these examples will inspire you to build an amazing employee retention strategy for your growing team or business.
- Starting with Problem #1: Mismatch between job and hire. The key here is to be consistent and honest about the job at every stage of the interview and hire process. This is no surprise but what MAY be are the steps and efforts required to ensure you hold true to this. As we mentioned previously, Candidates/employees who find that the job was not as expected are more likely to turnover. All too often the job changes from the original description and what was promised during the interviewing stages. It becomes painfully clear to the new hire that their new company played the bait and switch game which ultimately leads to mistrust. The new hire is now thinking, “What else are they lying about?” This is never a good thing especially since bad news travels way faster than good. This could damage the employer brand and reputation for a budding SMB that is prioritizing growing the workforce. So, as basic as it sounds, solving for this problem starts with building the details of what you’re looking for in the role you want to fill. Honestly, many hiring managers and talent professionals of SMBs don’t take these stages. We have written toolkits for each of these stages. You can download each by typing in the links here to get your templates, checklists, and forms. Don’t worry tho, you’ll be receiving this presentation this week so no need to copy the links. Information Collection: One of the first steps to the recruiting process is collecting information on the open position you’re looking to fill. 2. Job Description Development The second step is writing an accurate, descriptive, and compelling job description is a key element to finding your perfect candidate. 3. Phone Screening: The next stage is phone screening. This is your opportunity to 1) confirm the details of the role to prevent any uncertainty of what it entails and 2) get a sense of the candidates potential fit for the role. Don’t settle on candidates. 4. In-Person Interviews: Finally, it’s in-person interview time! This is where you should continue to be open and honest about the role and ensure your interview team is align on those details. Let’s take a closer look into each.
- Information Collection: The initial set of questions you should ask yourself or discuss with the hiring manager is the most critical moment in the recruitment process. Here, you’ll learn about the details of the position, agree upon the recruiting timeline, and build an execution strategy. If you’re a talent professional (recruiter or HR representative), make sure that the hiring manager or the team you are meeting with understands the purpose of the conversation and the questions you’ll be asking before going into the meeting. This allows the manager or team to come prepared with answers to your initial set of questions.
- 2. Job Description Development When writing the job description, ensure you have all of the pertinent details included. This helps ensure only higher qualified candidates apply reducing the labor to sift through mounds of less qualified candidates. It also helps to ensure you’re CLEAR about the role upfront from the very start of the recruitment process. I recommend you gain thoughts / feedback from a few other key partners who will collaborate with this candidate. This ensures you didn’t miss anything important. If you’ve got writer’s block, try researching other job descriptions on job boards and professional networks like LinkedIn to get inspired.
- 3. Phone Screening: As mentioned, the phone screening stage is your opportunity to 1) confirm the details of the role to prevent any uncertainty of what it entails and 2) get a sense of the candidates potential fit for the role. Don’t settle on candidates. You should have a “good” to “solid” sense that the candidate meets the needs of the role based on the questions you ask. Remember, settling on mediocre/less than qualified candidates often times results in turnover (voluntary or involuntary) due to the mismatch. Remember, stay consistent and clear about the details of the role. If for some reason, the role has some element of uncertainty or vagueness or potentially expected change, this is the time to be honest and upfront about it. It’s better to have the candidate make their decision to continue on in exploring the role vs. being surprised after being hired and soon quitting disgruntled due to mismatch of the job.
- 4. In-Person Interviews: Finally, it’s in-person interview time! This is where you should continue to be open and honest about the role and ensure your interview team is align on those details. TO ensure there is no confusion on the role, ask your candidate to share what he/she knows about the role. The candidate should be able to give you a good high level summary based on the job description, phone interview, and research he/she should have conducted prior to the interview. If there is a disconnect about the role, you should time a moment to detail the jobs role and responsibilities to ensure you both are align before continuing on with the interview. Again, if the role has changed or is expected to change, be open and honest about what the role could transform into. This is the stage where you’re also asking questions to get a better feel for the candidate’s skills and abilities to perform in this role. It allows you to learn about the candidate's past behavior and performance in certain situations. Remember, do not settle for mediocre as this may end up in more headaches and ultimately turnover. Try asking a series of questions related to role, provide case examples to see how he/she responds, probe into behavioral questions that touch on: Ability to lead (if this is a leadership role or requires cross collaboration) Judgment and prioritization Etc. That wraps it up for solving problem #1. Let’s move into how to address problem #2.
- Problem #2: Poor work/life balance There are times when management demands that one person do the jobs of two or more people. This is especially true when a company downsizes or restructures resulting in longer hours and possible weekend work. Employees are often forced to choose between a personal life and a career. Although this is common is SMBs, the tenure of an employee is probably shorter than companies who have more of a balance. If you’re looking for employee longevity at the company especially to retain TOP talent, here are some ideas of how to incorporate a work / life balance culture. 1. Keep an Eye Out for Burnout As an employer, part of your responsibility is to look after your employees’ well-being, in addition to just their job performance. A key part of this is learning to spot burnout. Chances are, your employees aren’t going to admit to you directly that they’re feeling overworked or stressed (they don’t want you thinking they can’t handle their job, after all). This means that most of the time, it will probably be up to you to recognize when your employees need more balance. Signs can include excessive absenteeism, increased error rates, and clear physical exhaustion. If you spot an employee who might be burning out, suggest they leave early one day, or try not to give them any extra projects for a bit. 2a. Embrace “Flextime” Allowing your employees to have flexible work hours or days, often referred to as “flextime,” is a great way to encourage a healthy work-life balance at your office. There are several different options for flextime: you can give a weekly hour requirement, but allow them to space the time out however they choose (10 hours on Tuesday but 6 on Wednesday, etc.) as long as they reach the required total, you can offer an hour range (35-40 hours per week, for example), or even have no requirement so long as the necessary work gets done. Flextime like this will allow your employees to have a life outside of work as well – they can get their work done and still attend their child’s soccer game or go to that housewarming party. This shows your employees that you value them as people, not just as workers. 2b. Support Telecommuting In addition to letting employees set their own schedules, consider allowing them to work from home at least a day or two. While there might be concern that employees won’t be as productive from home, which is completely understandable, the truth is actually quite the opposite. Companies as large as Apple and as small as UrbanBound (a Chicago-based, 52-employee company that provides web-based relocation software) are allowing their employees to telecommute, and are reaping the rewards. In fact, studies show that workers are up to 13% more productive working from home than working at the office. Plus, this gives employees the chance to get things done that might have required them to take a full day off of work. For example, working parents might need to stay home with a sick child, or someone could have a doctor appointment that was only available in the middle of the week. Supporting telecommuting will allow them to take care of their personal needs, while still getting work done. 3. Bring the Home to Work Trying to maintain a balance between home life and work life is no simple task. So why not make it easier on your employees and bring their home to work? Sponsor office events, like LinkedIn’s Bring In Your Parents Day, where employees are encouraged to invite their families (or a friend – working parents aren’t the only ones who need balance!). Events like these will give employees the chance to spend time with their loved ones, but also give you a chance to get to know your workers a little better. Plus, involving their families will make your employees feel you value them as human beings (rather than just workers), which creates a better working atmosphere for everyone. 4. Promote Health Initiatives An integral part of work-life balance is prioritizing health. Long work hours (and frequently, long commutes) often force employees to sacrifice health and fitness. However, as an employer, there are a few things you can do to help your workers maintain healthy lifestyles. For example, you can offer discount gym memberships for a fitness center near the office (this way, it will be more affordable and convenient for employees). You could also hold optional classes at work (think office-wide yoga at 3 pm on Tuesdays), or sponsor company club sports teams – this promotes work-life balance and your company’s image at the same time! Most conversations surrounding work-life balance are focused on the employees: what can they do to set their boundaries and priorities. However, as an employer, encouraging a healthy balance shows your employees that you don’t just value their job performance, but that you respect and value them as people. 5. Lead by Example Even if you let employees know that you support their healthy work-life balance, that doesn’t necessarily mean they will take responsibility for it themselves. We’ve all seen it – the boss says employees don’t have set hours, but the workers stay until 8 pm anyways; employees are given unlimited PTO, but they never actually take a vacation… balance is a lot easier said than done. So, lead by example. Head out of the office by 5 on certain days. Say you won’t be answering emails after work hours. If your employees see that you value personal time, they won’t feel guilty for prioritizing theirs.
- Ascend HR Corp nationwide HR services and talent acquisition firm, Ascend’s top-notch team specializes in recruitment process outsourcing. Using modernized methods and the latest technologies, diversely trained agents search high and low to find the perfect professional fit for job vacancies in healthcare, IT, energy, and real estate industries. Ascend HR Corp’s laid-back culture lets employees work from home and schedule their own hours, but employees prefer the office environment so much that they still love coming into work every day. Kristie Lopez, a talent acquisition coordinator, says that Ascend has made it easy for her to reduce stress in her personal life by letting her work on her own time—and the office even lets her bring her dog to work when she needs to take care of him!
- Fetch Robotics Fetch Robotics is creating innovative robotic solutions for the logistics market. With its first-class robotics and software programming, Fetch Robotics designs autonomous and collaborative robots to streamline operations, provide real-time warehouse information, and ultimately increase productivity. But it’s not all work and no play at Fetch Robotics—employees also find it important to take time out to increase their energy and creativity with games of laser tag around the office. As a single parent, Tashana Simon, Procurement Manager, loves that she doesn’t have to worry about taking time off to see her daughter. Fetch Robotics’ flexibility makes it easy for her to be both a mother and a full-time employee. “We’re a close-knit family with a casual atmosphere. Everyone gets along with each other, and we have a lot of fun,” she says.
- Windsor Circle Windsor Circle is revolutionizing e-commerce marketing by providing automated, continuous analysis of customer, product, and purchase data to clients. What began as a small startup has now grown into a world-class software company with the goal of employing 300 creative professionals. How does Windsor Circle balance work and play? By doing community service as a team! Each quarter, the company has a team day when employees devote half the day to learning new skills and the other half to volunteering in downtown Durham. The Windsor team strives to have a positive impact on its community—through active support for initiatives like Real Durham—and is strongly committed to investing in early childhood education organizations like Crayons2Calculators and Book Harvest.
- Plated Plated is revolutionizing the way Americans eat and cook meals. When customers subscribe, they get ready-to-cook fresh ingredients and chef-designed recipes delivered straight to their doors, and each meal is designed for a fun and convenient cooking experience. At Plated, it’s easy to live an active lifestyle. Employees often get together for spinning and yoga classes, and they even take time to exercise their brains with a monthly book club. Of course, there’s lots of fun to be had in the kitchen, where Platers get to taste test new dishes before they get delivered to customers’ doors. “What I love about Plated is that the fun happens naturally—there’s no need to schedule it,” says Nick Karrat, SVP of Marketing.
- 3) Management freezes raises and promotions. Money isn’t usually the first reason why people leave an organization but it does rank especially when an employee can find a job earning 20-25% more somewhere else. Make sure your wages are competitive and your benefits package is attractive. Resources like www.salary.com can provide accurate and appropriate information. Salary You'll have to decide: Will the company set salaries at, above, or below market? What's competitive?: A competitive compensation package includes salaries that are “at market” or above. If you can't be at or above market on salary, you can make up for it by being generous in other categories. Start your process by identifying all current and planned jobs at your company, defining the associated work and establishing salary ranges that match all of the job descriptions. To determine salary ranges, research and analyze the competitive salary ranges for all relevant jobs based on geographic location. Identifying salary ranges ensures that pay is competitive with other organizations. As you consider pay, you'll want to look at bonuses and commissions as well (startups, don't forget about equity!). Often, smaller companies work with a vendor to help analyze salaries, create ranges, and identify an overall approach for how to handle pay. Insurance You'll have to decide: Which insurance options will the company provide? What's competitive?: At a minimum, try to offer health insurance, vision, and dental insurance and cover a portion of the employee’s premium. There are a variety of insurance options to include in a comprehensive compensation package. The most popular is healthcare insurance. With the passing of the Affordable Care Act, it's important for small companies to understand what's required for a business of their size when it comes to offering healthcare benefits. When providing healthcare coverage, a company can choose to cover 100% of the premium or a percentage, with the employee paying the other portion. Businesses may also choose to offer coverage to just the employee or to the employee as well as family members. Other types of insurance that can make your benefits package more attractive are short-term and long-term disability, dental, and vision insurance. Again, when embarking on a plan to offer insurance options for employees, it’s important to work with experts and identify providers with options that fit the budget as well as meet legal requirements in your industry and city/state. Voluntary benefits: These benefits traditionally include additional insurance for vision, dental, life, disability and even pets. They can also include group legal plans, financial planning assistance and employee purchase programs. Putting together a voluntary benefits package that employees can buy into if they’d like to is a great way to create value without adding to your company’s costs. 401(k) plans You'll have to decide: When offering 401(k) benefits, will you provide an employer match? What's competitive?: One way to encourage employees to invest in their retirement is by automatically enrolling new employees into employer-provided 401(k). Automatic enrollment has grown more popular in recent years and now is used by 39 percent of employers, according to the Society for Human Resource Management's 2012 Employee Benefits survey report. One of the primary reasons companies offer 401(k) plans is to attract and retain top talent at every level of the organization. A 401(k) provides an easy and cost-effective way for employees to plan for retirement by making tax-deferred contributions to an investment fund. Employees aren't the only ones who receive tax deductions from a 401(k) plan -— employers can also deduct contributions made to employees’ 401(k) accounts. These tax benefits are important to consider as you determine how to the costs and benefits of your overall compensation package. Small and large businesses generally select a 401(k) provider to help administration for their program. Retirement plan professionals, like the team at Captain401, are available to help organizations manage 401(k) administration. Keep in mind, even if you work with an outside provider, your company must ensure responsible management of the plan and balance it with your other benefit offerings. Paid time off You'll have to decide: Will you have one PTO balance or separate accounts for sick, vacation and personal days? What's competitive?: The average employer provides nine paid holidays. One way to set your company apart is by offering more paid holidays than other employers, or by allowing employees one “floating” holiday each year that they may use for a holiday that the company does not observe. Paid time off (PTO) generally consists of specific allotments of time for paid time off that cover vacation, sick and personal days. Instead of maintaining different policies and PTO balances for each type of time off, some businesses have adopted a PTO program that awards employees a specific number of paid leave days that employees can use for any purpose. Managing PTO benefits requires an understanding of federal, state and local laws (including laws around family and medical leave, wage and hour, and military leave) that regulate the payment of all or a portion of pay to employees who take leave. Also keep in mind that when it comes to employee satisfaction, it's much easier to add components to your package rather than taking them away if budget becomes an issue. When you take a strategic, thoughtful approach to building a comprehensive compensation package, it will support your ability to hire, develop, engage, and retain the talent you need to deliver business results. “Competitive” can vary by local market and industry, but it’s important to get a ballpark figure through a salary survey or website. If you’re able to meet only 50 percent of the market-rate salary and limited funds to build a health insurance or 401K program, then consider beefing up your with other things
- For those SMBs who have a healthy millennial workforce, we know that millennial are hungry for flexibility, great cultures, new experiences and opportunities where they can learn and grow. These are also benefits – not the sexy work environment or free food – but powerful benefits that you can offer your company. If you do, dial it up in your employer branding efforts and highlight them throughout the recruitment process. Paid time off You'll have to decide: Will you have one PTO balance or separate accounts for sick, vacation and personal days? What's competitive?: The average employer provides nine paid holidays. One way to set your company apart is by offering more paid holidays than other employers, or by allowing employees one “floating” holiday each year that they may use for a holiday that the company does not observe. Paid time off (PTO) generally consists of specific allotments of time for paid time off that cover vacation, sick and personal days. Instead of maintaining different policies and PTO balances for each type of time off, some businesses have adopted a PTO program that awards employees a specific number of paid leave days that employees can use for any purpose. Managing PTO benefits requires an understanding of federal, state and local laws (including laws around family and medical leave, wage and hour, and military leave) that regulate the payment of all or a portion of pay to employees who take leave. Besides cash, employees are motivated by other forms of recognition and rewards. For example, consider establishing an annual trip to reward employees who have achieved certain annual goals. Besides increasing motivation, company-sponsored trips build camaraderie and teamwork. How you train, develop and manage your employees also drives retention and performance. However, paying them as well as you realistically can — based on their performance — is one of the best ways to heighten their motivation.
- AddThis AddThis’s website tools are used by over 14 million domains around the world, and its site sees 1.8 billion unique users on a monthly basis, enabling websites and marketers to obtain granular insights, personalize experiences, and activate marketing campaigns through paid, owned, and earned media. AddThis employees enjoy all kinds of perks, but a team favorite is the constant supply of free, delicious food. Lunch is catered on a daily basis, and free snacks and drinks are available all day long—with even more options during its hosted speaker series. AddThis knows that good food fuels creativity—and the company is committed to making sure it has plenty of both. The company also has an open leave policy that encourages employees to take time off as they see fit. AddThis’s culture is built on personal trust and mutual responsibility, which is why employees are allowed to work from home or remotely.
- Omnigon Omnigon is a digital consultation firm delivering brand optimization to leaders in the sports, media, and entertainment industries. The company’s offices are fun-packed with epic good times and endless perks. The company plans outings to exciting destinations monthly and holds 5 PM happy hours with foosball tournaments every Thursday. Employees can unwind with superb professional massages offered in office, recharge at the coffee and espresso bar onsite, or indulge appetites with Omnigon’s fully stocked pantry and weekly Fresh Direct deliveries. Ultimately, employees love working at Omnigon because it’s clear exactly how much the company cares about making them happy.
- 5) Feeling undervalued. It’s human nature to want to be recognized and praised for a job well done. And in business, recognizing employees is not simply a nice thing to do but an effective way to communicate your appreciation for their efforts and successes while also reinforcing those actions and behaviors that make a difference in your organization. 6) Lack of decision-making power. Too many managers micromanage down to the finest detail. Empower your employees and allow them the freedom make suggestions and decisions. I realize that Empowerment is a ‘catch-all’ term for many ideas on employee authority and responsibility; but as a broad definition it means giving employees latitude to do their jobs and placing trust in them.
- Not sure where to start? Take a look at these real-world examples of employee recognition done right. They’re inspiring, cost effective (under $100!) and easy to execute. Celebrate career achievements Employees feel appreciated when their employer or colleagues applaud their professional success. A great example is UC Davis Medical Center. Their Department of Pathology and Laboratory Medicine’s Facebook page not only shares news and engages faculty, but it’s also a tool to celebrate each other. When one of their faculty members received the highest award for undergraduate medical education, they went to Facebook to share her success. Uber certainly goes the extra mile to reward employee’s achievements. When one of their policy/communications managers passed the California State Bar exam, the Head of Global Communications brought out the bubbly – literally. Sarah Maxwell was beyond excited to see a bottle of champagne, flowers and a personal note of congratulations on her desk the day after results were posted.
- Show some PDA: Public displays of appreciation A simple pat on the back or “Thank You” goes a long ways. That’s why Google built a tool called gThanks, which lets Googlers publicly thank one another for going above and beyond. In addition, Laszlo Bock created a low-tech version at no cost. A "Wall of Happy" hangs outside his office to publicly recognize employees who are doing great work. As he explained in his LinkedIn status update, “What’s great is this not only facilitates a culture of recognition and service, it also encourages employees to act like owners and call out the good work they see.” Allow employees to announce big wins The day-to-day grind can really get to you, especially in sales. After countless unreturned InMails and several “No’s,” winning new business is a major celebration. That’s why Act-On Software brought in a celebration gong. Ted Polhemus spent months on a business case for a potential client, beating out three competitors and surviving “bare knuckle boxing” discussions on pricing. After his blood, sweat and tears, he unexpectedly received the order form late on a Friday. How did they celebrate? With gong smashing, high-fives and of course, a cold brew. Truly an awesome experience to close out a big sales win and show off success.
- Honor work anniversaries Work anniversaries are the perfect opportunity to reflect on your employees’ time, accomplishments, and professional transformation. That’s why "Faceversaries" are a big part of Facebook’s company culture. They shower employees with festive balloons and post heartfelt wishes on the platform itself, which encourages both friends and colleagues to participate in the celebration. Even after 7 years at the company, Natalie Hergert finds it rewarding and humbling to hear from her peers who share their congratulations and memories. As she puts it, “At the end of the day, you realize how much our company appreciates everything we do and this gesture is just a small token to say thank you.” Create award programs When you hear “Employee of the Month,” you immediately think of butcher paper and gold stars. But not at Starbucks and PlayStation. These two companies boost employee’s passion to new levels with physical awards that are anything but cliché. While Starbucks has a seriously robust employee recognition program with both performance and service level awards, nothing is more coveted than the “Partner of the Quarter,” also known as POQ. The program recognizes the significant contributions of café attendants, baristas and shift supervisors. Each quarter, one partner from each store is awarded with a frame-worthy certificate, special edition aprons & shirts, and a monetary bonus. Starbucks celebrates 28,000 partners each year. Similarly, Sony Computer Entertainment America (the team behind PlayStation) honors their biggest champions in an iconic way: the 5 Years of Service award, which is displayed in a five pound glass PlayStation controller. This symbol of appreciation makes employees feel valued for their ongoing dedication and contribution to the business and ultimately the gaming industry.
- Monthly career development meetings The pressure of daily business seems to always crowd out career conversations, so have managers schedule one-on-one career-focused meetings with their direct reports. Discuss their goals and needs, ensure that expectations are clear, and check that progress is being made. Regular check-ins demonstrate that managers care, and allow the employee to bring up any potential issues before they can grow into serious problems. 7) Too little coaching & feedback. Many managers have no clue on how to help employees improve their performance. In addition, many managers put off giving feedback to employees even though they instinctively know that giving and getting honest feedback is essential for growth and in building successful teams and organizations. Your role as a manager is to help your people find the right behavior, not just tell them what to do. 8) Management lacks people skills. Remember that many managers were promoted because they did their first job well, but that doesn’t mean they know how to lead others. People skills can be learned and developed but it really helps if a manager has the natural ability to get along with people and motivate them. 9) Too few growth opportunities. One of the most common reasons employees express for leaving their jobs is lack of challenge and potential for career growth. The most successful employers find ways to help employees develop new skills and responsibilities in their current positions. 10) Loss of faith and confidence in corporate leaders. With employees being asked to do more and more, they see less evidence that they will share in the fruits of their successes. More often than not, when revenues and profits are up, employers are still thinking competitive wages but employees are thinking bonuses, stock options and creative development opportunities.
- Monthly career development meetings The pressure of daily business seems to always crowd out career conversations, so have managers schedule one-on-one career-focused meetings with their direct reports. Discuss their goals and needs, ensure that expectations are clear, and check that progress is being made. Regular check-ins demonstrate that managers care, and allow the employee to bring up any potential issues before they can grow into serious problems. 7) Too little coaching & feedback. Many managers have no clue on how to help employees improve their performance. In addition, many managers put off giving feedback to employees even though they instinctively know that giving and getting honest feedback is essential for growth and in building successful teams and organizations. Your role as a manager is to help your people find the right behavior, not just tell them what to do. 8) Management lacks people skills. Remember that many managers were promoted because they did their first job well, but that doesn’t mean they know how to lead others. People skills can be learned and developed but it really helps if a manager has the natural ability to get along with people and motivate them. 9) Too few growth opportunities. One of the most common reasons employees express for leaving their jobs is lack of challenge and potential for career growth. The most successful employers find ways to help employees develop new skills and responsibilities in their current positions. 10) Loss of faith and confidence in corporate leaders. With employees being asked to do more and more, they see less evidence that they will share in the fruits of their successes. More often than not, when revenues and profits are up, employers are still thinking competitive wages but employees are thinking bonuses, stock options and creative development opportunities.
- In this section, we’ll go into ideas and programs that solve for the 5 pain points just discussed with hopes that these examples will inspire you to build an amazing employee retention strategy for your growing team or business.