In response to my article on the management consultant blog arguing why expensing options is good for business, I have received dozens of emails asking for my thoughts on how to attract and retain the best and the brightest, particularly in startups and rapidly growing organizations.
There is no argument that money attracts good employees, particularly in the current system in which neither the employers nor the employees have any sense of loyalty to each other. In a recent study by the Society of Human Resource Management found that not only are three out of four American employees looking for another job, most people say that they want a new job for more money. The second highest reason, though, for seeking new opportunities was lack of opportunities in their existing jobs.
Tips on attracting and retaining good employees
There is no argument that money attracts good employees, particularly in the current system in which neither the employers nor the employees have any sense of loyalty to each other. In a recent study by the Society of Human Resource Management found that not only are three out of four American employees looking for another job, most people say that they want a new job for more money. The second highest reason, though, for seeking new opportunities was lack of opportunities in their existing jobs.
Tips on attracting and retaining good employees
- Create an environment which attracts good people. Bo Peabody talks about companies that are fundamentally innovative, morally compelling, and philosophically positive companies. While these terms are self-explanatory, to read more about what he means by these terms, I strongly recommend the book Lucky or Smart? Secrets to an entrepreneurial life.
- Treat employees like human beings. No American is stupid enough any more not to understand that offshoring is the way of life, outsourcing will continue to be the buzzword for years to come, and jobs are not for life. But treat your employees with respect and cut down on the BS. They will appreciate it and as long as they stay with you, they will do their best.
- Think non-cash compensation. Several studies have shown that Americans now attach enormous value to simple perks and small rewards that have small cash value but create a lot of personal value for them. Some examples include extra vacation days, flex-time, ability to take time off at will during the day to attend to personal matters, etc. So think of about five ways in which you can make life of your employees better and they will hang on to you.
- Keep them interested in their jobs. It is only when employees get bored with their jobs that they want to switch jobs or find faults with their existing ones ("I am not getting paid enough here."). Put them on challenging assignments, rotate them according to their preference, and let them work part of their time on projects that they really want to work on (and don't insist on results from this piece).
- Always be fair. It is simply not acceptable to have several sets of standards for employees at different levels. One firm charged $250 for parking from their lower level employees while the senior level executives received free parking. Providing this benefit cost the company just $5,000 a month for top 20 executives but the return on it was very low - the whole company hated the benefit given only to a privileged few.