Staff retention: Salary must not dictate employment decisions

Job security and career implications are more important than monetary benefits. Photo/FILE 

By Margaret Kioko

In Summary

• The development of a successful retention programme is an art rather than a science. There is no single framework or strategy, which can be applied across different organisations. Each organisation must consider its unique culture and individual staff needs.
• Some of the key components essential to developing an effective retention programme include: the work itself , people, career opportunities and learning and development opportunities, total rewards, company practices, and quality of life.

As companies across the East African region grow, they are increasingly finding it hard to deal with the dilemma of attracting the right talent and retaining the valued employees.

With the threat of diminishing talent pools looming in most industries, many employers are working to identify and address the issues in their firms that support or sabotage employee retention.

According to Jennifer A. Carsen, author of Mr. How-To: Employee Retention, wanting to maximise retention is about maximising the number of good employees who stay with you because they want to, not because they have to.

Retention also involves weeding out the underperformers to free up space and resources for the high achievers. She clearly states that an organisation’s retention policy should focus on losing the losers and keeping the keepers.

Whether a company is thriving in a rapidly expanding market or struggling to make it in the market, attracting and retaining talented employees is vital to long term success.

Continuing technological advances, a shift from commodity-based to intellect-based markets and major fluctuations in global economies continually force companies to adapt and adjust. Successfully responding to such change requires many things — not the least of which is a competent, competitive and committed workforce.

Retaining staff minimises employee turnover rate, increases levels of employee motivation and job satisfaction, brings a sense of teamwork and leads to efficient staffing.

But how do you create a competent, competitive and committed workforce?

It is important for organisations to recognise that career implications and job security are more important than monetary incentives.

Employees need to know the company values them; if employees don’t feel appreciated, money will not hold them.

Adopting a suitable retention programme will not only motivate the employees but also reduce the risk of jumping ship that can take place as employees acquire hot new skills. In this way, companies save on the costs of replacing key employees and also gain a competitive advantage — in having a cohesive, involved and fulfilled workforce.

The development of a successful retention programme is an art rather than a science. There is no single framework or strategy, which can be applied across different organisations. Each organisation must consider its unique culture and individual staff needs before deciding on a particular retention programme.

Companies need to be creative when developing a retention programme. Don’t be constrained by current human resource policies or timelines.

Some of the key components essential to developing an effective retention programme include: the work itself (work processes, resources, and sense of accomplishment), people (leadership, supervisors, co-workers and customers), career opportunities and learning and development opportunities, total rewards, company practices, and quality of life (physical work environment and work life balance).

All these components are interrelated and leadership should prioritise the key areas of improvement based on their situation.

It is time for companies to stop clinging to the outdated notion that people “go for the gold”, that salary dictates all their employment decisions.

Companies need to recognise that in this time and age, people want challenging and interesting opportunities to learn and to advance in their careers. They want to be recognised and appreciated for their efforts. They want to feel a part of something that adds value to their community.

Margaret Kioko is a human capital consultant with Deloitte East Africa. The views expressed here are her own.