As experts in Human Resources (HR), we hear a lot about employee retention. A client recently said, “competitors are stealing my best employees with increased salaries.”
This statement is SOMEWHAT correct. Leaving a company for more money is a common reason employees give for leaving. However, often the employee uses this reason to get away from management and company culture.
The amount of money it takes to lure an employee away from your company is DIRECTLY proportional to the level of engagement they feel toward the mission and the management of your organization. If they like their boss, enjoy their current role and believe they are being treated fairly, it takes a pretty BIG number to lure them away. If you are paying your employees market rates, this number is something that your competitors are unlikely to offer.
However, you should be paying HIGHER than market rates if the following statements apply to your organization.
- Expectations are unreasonable.
- Positive feedback is intermittent.
- Extrinsic and intrinsic rewards are insufficient.
Unfortunately, some owners are hesitant to make real investments in improving management and leadership skills and other engagement initiatives. They think a summer cookout and a holiday party in December should be enough to buy employee engagement. But studies are clear – people join companies but quit bosses.
This highlights the importance of investing in how your organization manages and promotes people. Contact the Davidson Group to get details about specialized programs in employee engagement and retention. We are passionate about all areas of HR.
