The results of a new survey conducted among CEOs suggests that employer attempts to boost employee retention shouldn't simply consist of giving out raises. In fact, the survey suggests that offering employees more money to earn their loyalty may be less effective than the improvement of three simple business practices.
According to the 2008 Management Action Programs Inc. (MAP) Quarterly CEO Survey, the three business practices that employees value most in a company are 1) open communication, 2) employee recognition and 3) involving personnel in decision-making. The survey reports that CEOs "will be improving these fundamental business practices, rather than just giving people raises over the next few months."
In a press release announcing the survey results, Allen Hauptfeld, principal of Vantage Research & Consulting, which conducted the MAP survey, commented that "the number-one business practice--'open communication between management and employees'--was mentioned nearly twice as frequently as 'receiving raises'. Clearly, a work environment where employees are recognized as part of the team is more valuable than simply receiving a paycheck."
Lee Froschheiser, president/CEO of MAP, added the following observations: "Sure, financial reward is important, but the CEOs we interviewed are choosing to motivate first through other key fundamental strategies. For example, creating a workplace culture that recognizes employees for their professional contribution helps keep 'A' players from jumping ship."
"Personal growth is another huge motivator for staffers seeking more of a 'security blanket,'" Froshchheiser continued. "Providing a clear career path for your workers, including clearly defined steps for advancement, also pays big dividends in terms of retaining talented employees. Most of all, clearly communicating the company's vision and mission, as well as making employees feel they're playing an important role in the business' overall success are among these CEO's top employee-retention strategies."