Innovative new perks help firms cut turnover, boost loyalty

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For the past few weeks, the focus of this column has been about recruiting, one of the biggest problems facing employers. But you'll be fighting a losing battle if you don't pay attention to the flip side of this issue: retention. If your workplace is a revolving door of employees coming and going, not only will it cost you plenty, the net effect is low morale and productivity, even for those who stay. Every time a good employee leaves, their co-workers inevitably ask themselves, "If everyone is leaving, what am I still doing here?"

Monetary compensation has long been felt to play a large role in retention. But the basic compensatory packages such as vacation, sick leave and insurance are giving way to innovative enticements, according to a new study by BDO Seidman and the University of Wisconsin-Whitewater. These new benefits include such things as stock options, goal incentives, retention bonuses, optional vacation days, relocation aid, and family leave benefits.

The study also found a new type of benefit is gaining in popularity- lifestyle perks. This is the fastest growing segment of benefits in the battle for good employees. These innovative perks include such things as flexible scheduling, employee assistance programs (which provide counseling and referrals on everything from drug and alcohol problems to financial counseling), on-site amenities such as shoe shops, dry cleaning services and day care.

So what should your company do about this? Read on:

·        Experts agree that companies need to align their recruitment strategies with their retention strategies. (The letter that was featured in last week's column was a perfect example of this. A job candidate submitted a resume after seeing a flashy recruitment advertisement, only to be turned off by the unprofessional and even hostile treatment he received when he went for the interview.)

·        Top management has to buy in to the importance of this issue and do what is necessary to create a healthy culture. And the immediate supervisor or manager plays a huge role, too. This is the person who is the company to their employees. The study agrees, "Loyalty grows when employees feel good about their contribution to the company. In addition to incentives and compensation, individuals feel good when they are respected, involved in teams, have clear company goals and participative management."

Here are some additional ideas companies use to increase retention and loyalty:

·        Allow employees to use pre-tax money to pay for medical expenses or day care.

·        College scholarships for employees' children.

·        Company/employee recognition and awards program.

·        Give a random day off.

·        Employees work in different areas of the company (job switch days).

·        Paid time off to volunteer at child's classroom or school activity.

·        Banking flexible leave time.

·        Job sharing.

·        Work at home (or half time at home).

·        Company trips.

·        Productivity bonuses.

·        Provide 360 degree feedback (from manager, peers, employees).

·        Exit interviews.

·        Surprise "spot" bonuses for a job well done.

·        401-K and pension plans.

·        On-site convenience store.

·        Employee sports teams.

·        Include family members in company functions.

·        Give a customized reward that the whole family will enjoy (dinner at a restaurant, theater tickets, charter boat, etc.)

·        On-site massages.

·        Deferred compensation.

·        Programs to create open communication.

·        Programs that encourage employee ideas and participation.

·        Sabbaticals.

·        Rotating job responsibilities to increase learning and decrease boredom.

·        Give day of golf on company time.

·        Vacation discounts to families.

·        Growth and development opportunities.

·        Errand runners to take care of day-to-day needs.

·        Concierge service in-house.

·        Management training for good communications and employee relations skills.

(Copies of the study, "Special Report- Finding and Retaining Qualified Workers," are available through the University of Wisconsin-Whitewater (414-472-1194.)

Good managers know that employee satisfaction is essential to healthy teamwork, initiative and productivity.  Based on an in-depth study of the most innovative ideas in creating a culture where employees thrive, our recruiting & retention tools have all the secrets you will need to find and keep the best employees.

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