Retention?

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Topics: HRExaminer, John Sumser, by John Sumser

In the 21st Century, loyalty is a choice, not an obligation of the employment contract.

When we think of retention, we think of water. The next time someone mentions having a retention problem, ask “Are you bloated?”

It’s a very bad name for a very good idea. The very word retention makes it seem like the organization is the sole actor in resolving the problem of “getting the right people to continue to work at our organization”. The company retains or it doesn’t. The employees are the passive recipients of retention programs.

Even in the current murky environment, employees decide to stay or leave. As long as the cause for termination isn’t downsizing, performance or some other business reason, the employee has at least an equal part in the decision to remain. As the unemployment rate falls, their share in that decision grows.

Although there are certainly a small number of employers who cling to the idea that the relationship is one-sided, most real players acknowledge the change that has happened in the firm’s relationship with its members. In the 21st Century, loyalty is a choice, not an obligation of the employment contract.

We think a better term would be “engagement”. The goal of effective ‘retention programs’ is to improve the bond between employees and the firm; to increase the likelihood that they will stay; to decrease the likelihood that they might leave.

In order to accomplish these objective, the company has to perform several tasks:

demonstrate the alignment between individual goals and organizational success;
create a motivational environment that rewards the investment of passion and focus from employees;
make the benefit of staying higher than the cost of leaving;
show the employee how to increase the value of their contribution;
accept and reward passion and commitment when they are demonstrated.It’s surprising how little of the efforts described as “Retention” focus on the actual work that people do. An “Engagement” Program would start at the level of the actual work and improve the organization by making workers more effective. Hassle reduction and the introduction of useful tools into the environment are the essential keys to success.

About the author

John Sumser

John Sumser is a principal analyst for HRExaminer, an independent analyst firm covering HR Technology and the intersection of people, tech, and work. John’s mix of experience over the course of his career gives him a broad and unique perspective on the industry. Like anyone trying to process a lot of information, he is two or three steps ahead in some areas and still learning about others. Sumser’s work includes deep research into the nooks and crannies of HR Technology to identify and explain rapidly evolving trends. Built on a foundation of engineering, design, and philosophy, John’s seeks to understand and advise clients on where their technology works best, for whom, and in what context. Each year, John examines the insides of hundreds of companies, their products, and ecosystems. He delivers vendor analysis by building the framework from which to deliver the critique. He is constantly connecting and making visible the front end of change. He can help you see the path of evolution and the risks on the journey. The HRExaminer is Sumser’s vehicle for understanding and explaining the inner workings of the industry. With three weekly podcasts, and written commentary, he covers emerging ideas, the state of the industry, and the executives who operate it.

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