Golden Handcuffs -- Do they work?
A good friend of mine was sipping a morning coffee telling me about their business. As we sat together, they described life as a corporate benefits sales agent. They told me "we've got everything that employers want for their company's people - we help them put on the 'golden handcuffs'". In other words, a company's compensation packages can be so good, no one would ever leave!
I remember when I was hiring as a new manager early in my career. I heard someone say how they liked to find eager recruits who had plenty of debt. I realized later this was so off-mark. Setting the criteria for employee engagement around their need for income was a recipe for turnover. What I found out was that retention is not in compensation, but starts somewhere else…
"Setting the criteria for employee engagement around their need for income was a recipe for turnover."
It is not unusual, for employee retention plans to begin with salary and benefits. The problem is that a culture that centers on incentivizing people to keep them is short sighted. You may have heard people remark that the jobs/responsibilities that were motivated by money often ended in regret.
There are many compensation experts of which I am not one. What should be noted is how we keep the best people in our organization. Compensation is best used as a reward not as a tool for retention (although negligence here can cause employee loss, so it's not to be ignored). Here is the best way to retain employees.
"Here is the best way to retain employees..."
Retention is always best when the culture keeps people engaged. It's been said, "people don't quit companies, they quit bosses". This is true except it rarely comes out at the exit interview as the reason for leaving a company. What we know however is that the leader passively or actively creates the culture.
"Retention is always best when the culture keeps people engaged...the leader passively or actively creates the culture."
There are three culture drivers that bring strong retention and can be impacted by the leader. These three drivers when all in place make it hard for employees to want to leave a company.
The three culture drivers for retention are when your people:
are recognized for their contribution and feel valued.
know who counts on their work.
are known for who they are as humans.
Test these drivers via survey with your teams and continue to support them. It will improve the culture and cultivate a strong performing environment as well.