Ken Keller: Retaining Your Employees is Job One

Retaining Your Employees is Job One

KEN KELLER

SCVBJ Contributing Writer

Ihave been encouraging my CEO clients to focus on retaining good employees. It is a topic of discussion at every Strategic Advisory Board meeting I facilitate.

There are three questions CEOs to answer when creating a supporting strategy to retain.

The first question is, aside from losing experience and tribal knowledge, why do I seek to retain? Second, how do I determine who I should focus on retaining? Third, what can I do to retain the employees I want to keep?

The most obvious reason to retain your better employees is cost based. The average cost of recruitment is close to $4,700. Adding hard and soft costs, a $60,000 position could cost $180,000 to fill the job.

Who you should focus on retaining is going to depend on varying perspectives, starting with who your A, B and C players are. CEOs and managers have their own definitions of what those letter grades mean.

I’ve recommended using the 9 Box Grid to rate all employees (see graphic).

Employees are placed using the definitions provided and each placement determines future courses of action for management to take.

What I have discovered is that it is easy to identify the Stars and the Low Performers. The other seven boxes appear to be more arbitrary, but they shouldn’t. Go through the employee list several times to make sure that placement is accurate.

Which leads to question three, what can the CEO do to retain the employees that the company wants to keep?

For starters, there is a book titled “The Dream Catcher” by Matthew Kelly I recommend reading. It debunks the thought that all employees want is more money.

When my grandfather immigrated from Ireland, he didn’t ask about the pay, he wanted a better life. So do your employees. The work environment you create is key to employee engagement and retention.

Research suggests ten motivating facees who want to work for a company that has a future and a plan to get there.

I don’t mind sharing that communication of these items to all employees is essential. Unfortunately, CEOs and managers do not do a very good job of doing this. A quick example: how many CEOs praise people and the work they do versus criticize them?

But let me discuss the elephant in the room.

People working today are impacted by decisions made elsewhere that are reducing everyday purchasing power (food, gasoline). In addition, costs for the essentials for living (rent, utilities) are increasing with no end in sight.

If the money you are paying your employees is not meeting their basic needs, the employee will do what is necessary to survive. Don’t wait until they have received a better offer before you match it. Be proactive in your quest to retain. „

Who you should focus on retaining is going to depend on varying perspectives, starting with who your A, B and C players are. CEOs and managers have their own definitions of what those letter grades mean.

9 Box Performance-Potential Matrix

High

Needs Development 1C

Poor Performance High Potential Meets

Expectations 1B

Good Performance High Potential Exceeds

Expectations 1A

Outstanding Performance High Potential

Moderate 2C

Poor Performance Moderate Potential

(new role) 2B

Good Performance Moderate Potential 2A

Outstanding Performance Moderate Potential

Limited 3C 3B 3A

Poor Performance Limited Potential

Good Performance Limited Potential Outstanding Performance Limited Potential

Poor Good Outstanding

Performance - technical skills, abilities, and subject matter knowledge in job related field; ability to develop and maintain working relationships which incorporate DOHR’s values.

Potential - the ability or capacity for growth and development into a leadership role.

Leader - one who guides, directs, influences, and shows the way to others.

tors employees desire to have at work: „ Appreciation or recognition for a job well done „ Being in the know about company matters „ An understanding attitude from the management „ Job security „ Good wages „ Interesting work „ Career advancement opportunities „ Loyalty from management „ Good working conditions „ Tactful discipline

Notice where “good wages” is on the list.

Almost every item on this list can be addressed by having a positive, desirable culture that attracts and retains employ-