An already small labor pool is expected to shrink even more during the next several years, but that doesn’t mean you need to break open the bank to attract and retain a high-quality work force.
As the number of available workers between the ages of 25 and 44 diminishes, a startling reality is beginning to emerge — the competition for qualified workers is fierce. “Companies are accustomed to competing for market share — now they’re going to have to compete for work force share as well,” says David Stum, a senior vice president with Aon Consulting.
Stum says a fair salary, benefits and job security get employees in the door, but keeping them happy, and in turn committed, is an entirely different beast.
Aon, a global resources firm with a Cleveland office, has spent the last three years studying employee commitment levels to determine what factors lead to a faithful work force. Its recently issued report identifies the five most important things companies can do to create committed employees.
The study reveals a vast majority of workers is willing to stay on board as long as their employer is committed to them.
Help employees balance work and a personal life
A company’s ability to not only recognize, but cater to, an employee’s personal and family life, is the most important factor in worker commitment. The trend is most obvious in younger employees, who are not bashful about letting potential employers know they have a life outside their career.
“Generation X is leading the way,” Stum says. “During the interview, you’ll get questions like, ‘I’ll do a good job, but you do understand I will need time to climb mountains every December?” Whatever the interest is, people are putting it up front.”
A focus on family and personal life, however, is increasing in every age group. The key to handling this trend is devising a flexibility that allows vacations or benefits which vary according to the needs and schedules of individual employees rather than simply implementing a cookie-cutter program that applies to everyone.
“See if you can make everything as flexible as possible,” says Strum. “If I’m a 42-year-old father with two kids, I may want better stock options. It used to be everybody got the same thing. Being flexible helps commitment.”
Provide personal growth opportunities
The promise of a promotion in exchange for quality work is not the enticement it was a generation ago. Enthusiasm will wane quickly for employees who do not plan to advance up the corporate chain, unless there is an opportunity to learn new skills or tackle challenging projects.
“You have to remember, first of all, there aren’t that many promotions to give anymore,” says Strum. “You have to give them an opportunity to do something different on the job.”
Share customer comments
A vital ingredient of employee loyalty is making workers aware of customer satisfaction. The problem with customer comments is that they routinely do not get any farther than the marketing department. That leaves employees on the manufacturing line oblivious to how their work is perceived by the paying public.
“My suggestion is let employees in on some of that information,” says Stum. “Everybody wants to know what the customer thinks.”
Clearly communicate employee benefits
One problem with benefits is that most employees don’t know exactly how they work. That often creates frustration when a benefit, such as an insurance claim, is fouled up. But employers claim that devising effective ways to communicate to workers the advantages of their benefits is proving to be a major challenge.
“Benefits are worth another 15 to 20 percent of their salary,” says Stum. “The question is, do they know that and do they have a good experience with it.”
Some companies have used videotapes, comic books, even lunchroom skits to explain employee benefits, all resulting in more success than the paperwork traditionally issued to employees.
Hire employees who can keep pace with the current work force
There is often a significant gap between the job description on file at the company’s human resources department and the real world responsibilities associated with that job opening. That can leave new employees overwhelmed, and veteran workers frustrated, when the new hires cannot meet the demands. Often, hires will be placed on teams in a company without any consultation with a supervisor.
“The disconnect is between the human resources department and the team,” says Stum. “They need to be consulted as to what are some of the criteria for hiring people.”