Six Truths about Employee Turnover—truths 4-6

Truth No. 4: More Money Is Not the “Silver Bullet”Talented workers want to feel they are being paid comparably to what other companies pay for similar work in the industry. They also care about being paid equitably with others in similar positions making comparable contributions. When these two conditions exist along with interesting and meaningful work, acceptable working conditions and good management practices, the prospect of making a little more money in an another organization where these softer factors are unknown is usually not enough to pull the employee away.
Truth No. 5: Managers Hold Most of the Keys to Keeping the Right TalentOne recent study showed that 50 percent of the typical employee’s job satisfaction is determined by the quality of his/her relationship with the manager. Many companies are floundering today in their attempts to improve employee retention because they have placed the responsibility for it in the hands of human resources instead of the managers. Many companies have begun to measure managers’ turnover rates and vary the size of their annual bonuses accordingly.
Truth No. 6: Reducing Turnover Starts with CommitmentThe organizations that achieve the most dramatic reductions in turnover and maintain those lower levels are usually the ones where the top executive or owner makes it a priority. Even when the top executive is not committed, however, one committed manager can still make a difference.
Adapted from—KEEPING THE PEOPLE WHO KEEP YOU IN BUSINESS: 24 Ways to Hang on to Your Most Valuable Talentby F. Leigh Branham (AMACOM; October 2000)