Retention:  Myths and Realities
By Darlene Davis

What makes an employee decide to stay with a company?  Many assume money is the answer.  True money is important.  Employees want to be paid fairly and competitively.  But there are some proven, non-financial retention strategies that continually top the list.  A sampling:

 Meaningful Work

“To be a great place to work, you’ve got to be a great business,” says Paul McKinnon, senior vice president of human resources for Dell.  “At Dell you work with the best.  People come because they want to be challenged.”  According to McKinnon, “money has worked for a very long time, but at some point it has to be more than a great place to make money.” 

Career Development Opportunities  

“Many companies believe paying techies more helps curb turnover.  But a surprising study shows higher pay may not be the answer.  In fact, according to the survey of 27,000 workers at 180 employers in all industries, the turnover rate in their information-technology department was higher on average by those with the higher salaries.  So why did the IT employees leave?  ‘Lack of career development opportunities’ is cited as a top reason.”

Wall Street Journal, September 26, 2000

“Today people are less and less interested in money and more interested in opportunities to learn and grow,” says Judy Streeter, senior vice president of human resources for the North American Lodging Operations for Marriott International.

     Above quotes from Human  Resource Management News, August, 2000

          (Kennedy Information publication – 800-531-0007)

“Eliminate the myths such as:  Training will only make employees more marketable.  In the long run, providing employees with the latest in learning opportunities may indeed raise their market value.  However, it also helps to motivate them and enhance their performance in their current positions.  Offering training and development opportunities is a very worthwhile retention strategy.” 

Source:  Carol Hollen, Drake Beam Morin. Dallas HR Horizon, September, /2000

Good Bosses

 “A+ employees want A+ bosses.”  – Caela Farren, Mastery Works

 “40% of employees, if they could, would fire their boss.” - DAVID  Ulrich, UN of MI

 According to Saratoga Institute, 50% of workers say their job satisfaction is based on the relationship they have with their boss.  – Saratoga Institute

 “When job opportunities are plentiful, people with crummy bosses leave.”

           Charles A. O’Reilly III, Harvard Business School 

Submitted by Darlene Davis, The Ryan Group, Inc. 10-13-00