Tool 9. EMPLOYEE RETENTION PLANS

About This Tool

An Employee Retention Plan is an interesting concept in that many organizations don't really "plan" on how they're going to retain their employees. That is - until they have a turnover problem. At that point, it's not exactly a plan, but more of a reaction. A reaction that's typically too little and too late to have any impact.

When unwanted turnover hits, the first response oftentimes is to get the recruiting machine cranked up. At that point, it feels more practical and easier to recruit than to retain. Let's face it, once turnover gains momentum, there's little an organization can do to stop it in any systemic way. So why not invest that time and energy in recruiting. Those folks that are leaving or looking are already gone - right? Perhaps.

That's why companies need to take advantage of down times (i.e. economic down times) and get a plan in place. That doesn't mean thinking through what the company is going to do when turnover hits. It means thinking through what the company is going to do to prevent the turnover from hitting again.

Using This Tool

This tool is not a specific retention plan, although it does include numerous specific issues and possible solutions. It's actually intended, however, to provide a roadmap of how to think through devising and implementing an organization's retention plan.

Research and experience show that employees don't leave because of faulty HR programs and processes. They leave because of their experience with the managers for whom they work. That realization is a key for two reasons: first, there is no difference between effective retention tactics and sound management practices; and, second, managers (not HR) are in the best position to detect growing turnover risks and to do something about them - before it's too late.

This tool is based on the experience and learnings of various companies and institutions. It can help an organization: get a more conclusive picture of what drives their turnover; identify some of the warning signals that managers should know about; compare their causes and possible solutions with those found and addressed by other organizations; and evaluate the various possible solutions as to their value and priority.

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