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Over the years we surveyed the thousands of companies that use HR That Works and found that hiring somebody they can trust has been the number one concern for most companies.
The second and third concerns have everything to do with the economy; before the recession employee retention was the second greatest concern and productivity the third, while in a tight economy productivity often moves ahead of retention.
In last year’s survey retention climbed back into second place, once again indicating its bellwether position, and employers report difficulty finding quality employees despite continued high unemployment levels.
More than ever, employers must do a good job of employee retention. The greatest factors in retaining experienced employees are the opportunity for advancement and the relationship they have with their immediate boss.
What it takes to advance an employee’s career should not be a mystery at your company. I encourage members to document clear career ladders and tell employees what opportunities exist and what skills and experience are required to reach the next level.
If you are at a smaller company, don’t let the lack of advanced job titles hinder career growth; creating a new title or expanded responsibilities can be better than telling an employee there is no room for advancement.
When it comes to the relationship with the boss, the question is simple: does the boss spend time showing the employee they care about them? Most bosses spend more time dealing with problems created by the small group of non‑producers than nurturing their top talent, and that can be a costly mistake.
All managers should have a plan for improving relationships with top performers that includes discussing job performance, career advancement, and compensation opportunities such as executive-level benefits; see Executive Benefits for ideas on structuring compensation for key employees.
Employers also need to be aware of broader obligations and policies that affect retention and benefits; for guidance on employer responsibilities and retention considerations see Employer obligations under the Patient Protection and Affordable Care Act and employee retention.
HR That Works members should use the Now That I Got Them How Do I Keep Them training module with its related forms, audits, videos, and other resources.
Also review the Employee Retention Program Possibilities Spreadsheet for ideas and consider reaching out to ask an agent if you want help applying these ideas to your organization.
Frequently Asked Questions
What are the most important factors in keeping top employees?
Clear opportunities for advancement and a strong, supportive relationship with an immediate supervisor are the two most important factors in retention.
How can small companies provide meaningful career growth?
Small companies can create new roles, expand responsibilities, or define skill-based steps on a career ladder so top performers see a path forward.
How often should managers discuss career development with employees?
Managers should have regular check-ins—at least quarterly—to discuss performance, goals, and advancement opportunities.