Excerpt from:  Small Business Virtual Office Tips
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May 07, 2008

Small Business Management: Employee Retention

Small business tips for improving employee loyalty, increasing retention rates and keeping staff happy

When I had my first job many years ago, I remember how nervous I was not to make a mistake, to complete every project detail with precision and care, and to work above and beyond in order to make a good impression. I was hoping to thrive in my position, and stay with the company for years to come.

In today’s business climate, it seems like workers change jobs as much as their wardrobe. From a management point of view, this can wreak havoc in terms of training time and money, as well as morale and team unity. According to Dale Carnegie Training, evidence would indicate that a large number of employees in today’s workforce will change jobs every two years. In the first 10 years of their career, many younger workers may have as many as 8 jobs.

So, what can businesses do to retain top talent? Engaging employees is key. Peter Handal, chairman, president and CEO of Dale Carnegie Training, believes there are certain steps businesses can take to keep employees engaged and evoke loyalty in order to cultivate strong talent. He provides the following suggestions when considering programs focused on engaging employees and developing high potential talent:

Support employees in building strong skill sets.  By supporting employees in building both technical abilities and transferable skills (communication, confidence, leadership, and people skills) an organization can demonstrate their interest in the development of their employees. A more holistic approach to employee development is a key first step in employee engagement.

Prepare employees for, and support them during, times of transition. Individuals face transition in both their personal and professional life. Starting a new job, taking on a new role, moving to a new location are all times when the transition can overwhelm an employee. By helping employees prepare for job and role transitions, supporting them during the transition, and then recognizing their successes in the new situation, organizations can create a connection with employees that strengthens their engagement with the team and their willingness to help others during their times of transition.

Foster a sense of ownership within employees. The old encouragement to “act like you own it” is good advice. The challenge is making the adage practical. It is difficult to build a sense of ownership when the plans, activities, and details are dictated to you. Managers need to find ways to actively engage employees in contributing ideas to plans, activities, and outcomes.

Help employees see the link between current efforts and future opportunities. When employees view their efforts as a disconnected series of activities it is easy to begin looking for other opportunities where their work can be more meaningful. Providing employees with a clear line of sight between their work and the larger initiatives of the organization is a solid method of engaging employees and retaining top talent.


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