Retention Are - Or Soon

¶ … retention are - or soon will become - major issues for most organizations.

Why? For one thing, the declining birthrate means that there are fewer people in the labor pool to replace those who retire. What retention strategies/practices are you familiar with, to reduce turnover and to make a particular company or organization (or job) so attractive that people will not want to leave?

Often, it is assumed that certain establishments do not care about high rates of employee turnover and retention, because the shorter employees stay, the less the establishments have to pay these individuals in terms of raises, benefits, and bonuses. But even in the fast food industry, which has one of the highest employee turnover rates, training costs far more in the long run, than paying raises to good, current employees. One business professor at the University of Buffalo who went undercover as an employee at several fast food establishments noted that quite often, in defiance of conventional economic wisdom, employees would flock to a better-managed fast food place paying 5.50 an hour, versus one paying 7.50 an hour on the same road ("Counter Feasts," NPR, 2007). Why? At the places with the lowest turnover, good mangers showed respect for their employees. They were serious when things were in a crunch, but could unwind and have fun. They respected employees' need for flexible hours when possible, and were compassionate to employees during times of stress and strain. They also respected employee's input about inefficient processes on the food assembly line. Excellent employees were also targeted for higher-track positions in the company, and favoritism was not shown to friends of the management.

It is not only fast food companies that can make use of such effective retention strategies, however. Any good manager will listen sincerely to employees, and endeavor to make them feel like valued members of the company, by showing compassion for their need to care for children, elderly parents, and balance home and work demands. Retention is not simply about pay raises. It is about creating relationships at work, making employees feel as if their contribution to the organization is unique and valued, and not forcing employees to choose between a personal and a professional life.

Thinking about companies and organizations you are familiar with, what are some examples of HR practices that are consistent with that organization's strategy? and/or, some examples of HR practices that are inconsistent with the strategy?

Microsoft's commitment to diversity as a corporation is consistent with its desire to be a global player in the international community. Microsoft employs people from more than 135 different countries and regions, and has groups within the organization to provide mentorship and support for members of underrepresented groups in it, such as women and African-Americans ("Programs and Initiatives," Microsoft Corp: Diversity, 2007). This is not simply good public relations for Microsoft. It is also helpful for an international company to have input as to different customs in Microsoft outposts around the world, and also to understand how to market company products differently in minority market segments. The company's provision of scholarships, internship programs, and other outreach programs to minority and female students is not simply compassionate, but creates a new generation of Microsoft users with positive feelings about the company.