There is no question that poor employee retention and satisfaction strategies have a lot to do with the massive turnover in the U.S. At Harvard University, economists have pointed out that the COVID-19 pandemic has given many workers a chance to rethink their employment options. Quite a few of those participating in the Big Quit of 2021 left companies where employee retention and satisfaction were an afterthought.
To achieve success, many business organizations rely on what is known as human resources capital. This means that their operations are crucial to their bottom line success, and they need to be conducted by the right people. The best way to build HR capital is through employee retention and satisfaction; the opposite of this strategy would be a high turnover rate, which invariably results in significant losses.
Fostering Employee Retention and Satisfaction from the Beginning
There is an unfortunate misconception among entrepreneurs and startup company owners who believe hiring a few temps to handle things during the initial stages is a good move. The flawed logic here is that they will look for more adequate employees once things are rolling. Ignoring employee retention and satisfaction from the beginning is not a good way to do business at all.
Most startups will not have sufficient access to capital to hire different workers for all the positions that need to be filled. When this happens, it pays to hire people who will wear many hats and fulfill multiple roles. When these foundational employees help you establish operations and expand, you will want to retain them, but they will only accept an offer if they are satisfied with their jobs. You can keep these employees by making it easier for them to launch the company; they need clarity and accountability of their roles and key performance indicators so that they know what to do and how to shine.
Finding the right people is our second step to business success
See the rest: 6 Steps to Business Success
Personnel management is a significant factor in fostering employee satisfaction and decreasing the likelihood of turnover. Harvard economists evaluating the Great Resignation of 2021 have found that many employees who have quit during this period are mid-career workers with negative opinions about how they were managed. We are talking about individuals aged between 35 and 55, so they are members of Generation X and Generation Y.
Surprisingly, many companies are still applying Theory X
This outdated theory sees workers as individuals who collect paychecks and avoid doing work whenever possible; this line of thinking evolved into the failed micromanagement style that has been heavily criticized since the late 1980s.
Theory Y of employee management considers internal motivation and self-achievement, and it is more conducive to retention and satisfaction. The ultimate in personnel management, Theory Z, which is based on humanistic approaches to management, is not so easy to implement, but it often results in complete employee loyalty.
Understanding generational gaps in the workplace is as easy as understanding that Theory X never quite worked as intended. When working with those used to managing or being managed in the style of Theory X, it is essential to help them understand that micromanagement and mistrust do not translate to job satisfaction.
Learn More About Employee Retention and Satisfaction
Our business advisory services help business owners and managers to improve their bottom line through strategic practices and planning. To learn more about staffing strategies conducive to your company, contact us today below, or read more about how to write a vision and mission statement for your company.
This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.