RSS icon

Top Stories

DEAR WORKFORCE

How Could Our Not-for-Profit Boost Retention Even Though We Can't Compete on Salaries?

Retaining top talent is emerging as a big issue, but our organization can't rely solely on increasing salaries and bonuses to keep our best people. For one thing, our competitors are often larger and can offer more money. What steps could our not-for-profit take to increase the odds of retention? How do we adopt a total talent management strategy?
October 5, 2011
ASK A QUESTION
Related Topics: Career Development, Reward (Recognition) and Incentive Programs, Employee Engagement, Compensation Design and Communication, Retention, Dear Workforce, Compensation
Reprints

Dear Money's Not the Object:

There is good news. Many studies have revealed that, for most companies, compensation is not the primary driver for employee retention. According to a recent BlessingWhite Inc. study, "The top reason employees give for jumping ship is: 'My career. I don't have opportunities to grow or advance here.' On the other hand, the top reason employees worldwide give for staying with their employer is: 'My work. I like the work that I do.' Career is the second-rated reason people stay."

So how should you use talent management to retain top talent in a cost-efficient way? First, create talent management programs that foster career growth. Second, ensure employees are fairly evaluated and compensated.

Let's take a look at some of the different areas of talent management and show how they can contribute to top talent retention.

Learning and Development

  • Career paths using a common competency model: Documentation and resources around "career pathing," coupled with a common corporate competency model, will help employees own their career growth and feel supported by their company and manager.
  • Support 70/20/10 development: Many companies utilize close to 100 percent class-based learning opportunities, while studies have shown that the most effective learning programs utilize only 10 percent class-based learning, coupled with 20 percent relationship-based learning (such as mentors) and 70 percent experiential learning (such as stretch assignments or project-based work).
  • Accelerated leadership development: Giving top talent accelerated leadership development opportunities keeps them engaged.

Succession Planning

  • Top talent identification: Utilizing talent reviews and succession planning to identify top talent early ensures focused attention on your highest performers and high-potential employees.
  • Long-term development planning: High potentials like varied experiences, so taking the long view with your top talent when planning succession will help to increase retention.

Performance Management/Compensation

  • Fair, objective and differentiated performance management/compensation: Unfair or undifferentiated performance management and compensation processes will cause your best talent to feel underappreciated, so make sure you get this one right.
  • Manage underperformers: Keeping underperformers around will demotivate your top performers and keep them from maximum contributions.

Talent Acquisition

  • Support for internal mobility: Keeping a talented employee from moving to a new position to learn something new is a sure way to prompt that employee to start looking for a job elsewhere. Ensure your leadership and management support the idea of internal mobility.

Keeping these principles in mind when designing your talent-management strategies and processes will have a much larger impact on retention than simply increasing salaries, allowing you to win the war for talent against your larger competitors.

SOURCE: Andy Rice, Newman Group, Los Angeles

LEARN MORE: For more on defining talent management, please click here.

Workforce Management Online, October 2011 -- Register Now!

The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.

Ask a Question

Dear Workforce Newsletter

ASK A QUESTION

 The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.

If you have any questions or concerns about Workforce.com, please email customerservice@workforce.com or call 312-676-9900.

The Workforce fax number is 312-676-9901.

Sign up for Dear Workforce e-newsletters!

Comments powered by Disqus