The reality in many workplaces today is that the best and brightest talent will jump ship if they feel they've topped out on salary or can't expect a promotion anytime soon. And that's fair: Workers, especially top performers, will naturally want higher titles and compensation to reflect their contribution levels.
That's especially true at companies where pay has skyrocketed for certain hard-to-find employees while remaining flat or falling for others. So how do companies keep great workers engaged when budget and promotional limits could otherwise stifle career growth?
First, let's be clear about two things:
"Unlimited growth potential isn't required in most situations when trying to retain top performers who otherwise feel connected to their work and are fully engaged," said Rob Hall, senior vice president of global human resources at Avita Medical in Valencia, Calif. "In other words, when people experience self-fulfillment in their contribution levels, their relationship with their boss and the positive difference they believe they make every day, compensation plays less of a role in that individual's overall assessment of their work situation."
Hall further explained that "compensation and vertical promotions may be very legitimate motivators under certain circumstances, but you have to see past that initial excuse to examine whether the real, underlying reason for an employee's departure has to do with the relationship with their boss. Likewise, workers may feel like they're treading water career-wise, doing the same work they've been doing for years with little opportunity for growth, challenge or professional development, which also leads to regrettable turnover."
HR professionals need to start with one basic assumption, though: Their role is not to motivate the staff. All motivation is self-motivation; people are responsible for motivating themselves. Instead, HR should be responsible for creating an environment in which people can motivate themselves. It's an important distinction to understand because the weight of the world isn't on your shoulders to keep people happy.
Few companies have unlimited opportunities to promote people internally, yet they benefit from long employee tenures. Many employers have withheld equity adjustments and even annual merit pool increases because the bottom line has been squeezed so tightly, especially in light of large-scale downsizings in certain industries.
Therefore, now is the time to look at the latter half of the recruitment and retention equation. The time to begin recognizing, appreciating and motivating staff is now. That doesn't mean you have to bring your corporate pompoms to work and play cheerleader. There are, however, several relatively simple ways to create an environment in which people can motivate, reinvigorate and reinvent themselves.
1. Increase Opportunities for Delegation
"When done right, delegation provides on-the-job training that can challenge and motivate people exponentially—as long as what they're working on ties into their longer-term career goals," said Brenda Villa, director of human resources at Desser Aerospace in Montebello, Calif. "This isn't about managers delegating minor tasks that they want off their desk; it's about delegating what they're good at and putting people in a position to gain hands-on experience doing what they're most interested in."
In this case, delegation refers to stretch assignments where employees are able to get their hands dirty learning about and gaining exposure to other parts of the organization that they find exciting from a career development standpoint. "Far better than any 'book learning' or canned workshop, hands-on exposure rotates people into positions of pure learning and growth that's meaningful to them personally," Villa said.
Does a recruiter on your team want to learn more about human resources in general? Assign that person the task of conducting a departmental baseline audit to capture the broader picture of the department's effectiveness. Would it make sense for them to spend a half day every week over the next quarter shadowing their peers in other areas of HR to learn firsthand what they deal with and how they handle challenges? Is the recruiter a high-potential performer who wants to visit corporate headquarters and get to know their international recruitment peers? You won't know until you ask, but delegating or exposing the individual to other areas of the organization can go a long way (with low expense) in re-engaging and retaining talent.
2. Introduce Rotational Leadership for Staff Meetings
"One thing that staffers often look for in an ideal employer is leadership development opportunities," Hall said. "In fact, we know that career and professional development lies at the top of Gen Y and Gen Z wish lists. Place employees into…click here to read full article on SHRM’s website.