Retaining Workers – Three actions employers are taking

Based on interviews with Express franchise owners in regions across Canada and the United States, Express has identified three actions employers are increasingly taking to improve employee retention.

Raising Pay

“It’s a wage war right now,” said Jeff Rey, Express franchise owner in Howell, Michigan. “Even small increases in wages can be enough to entice employees to change jobs if they don’t feel invested in their current companies.

As such, employers are more frequently evaluating their pay rates in comparison to their competition and prevailing wages in their communities. Those who aren’t re-evaluating are more likely to lose skilled employees.

“Overall, wages are increasing for both recruiting and retention reasons,” said Dave Kehlor, Express franchise owner in Indianapolis. “There is a shallow pool of quality unemployed workers available to meet the high demand for people. So employers are trying to attract workers who are already employed through higher pay rates.”

Recognizing Generational Differences

Compared to older generations, Millennials are more willing to change jobs frequently and to leave a job after a brief period of employment. That is due in part to the increasing burden of student loans.

“After finishing a degree, Millennials tend to prefer a job in their specific field and are less flexible,” said Annette Grant, franchise manager in Brantford, Ontario. “But when student loans are due, they may have to re-assess their choices.”

Employers who recognize that Millennials and Baby Boomers often value different things in the workplace are more likely to be successful at employee retention.

“Millennials think nothing of crossing the street for an extra dollar or two per hour,” said Jessica Culo, franchise owner in Edmonton. “You need to keep them interested in what’s going on and build the relationship.”

Whereas previous generations were more likely to remain loyal to an employer, Millennials are less likely to feel that level of commitment. Team building, effective communication, and providing a sense of direction are all key components to earning the loyalty of the younger generation.

Building Relationships with Employees – and Training Them to Move Up

Janis Petrini, a franchise owner in Grand Rapids, Michigan, explains that not all benefits are tangible.

“Retention has to do with the company’s responsibility of providing a strong culture and high engagement for their employees—that they have an excellent talent strategy for each one of their employees,” she said. “A lot of issues could be resolved by examining the culture. Money is not the only reason people leave. Workers are leaving because they’re not feeling engaged.”

“Retaining employees means thinking about more than their financial needs. It means allowing for a good work-life balance, a positive company culture and opportunities for personal growth, Nolfo said.

Chosen excerpts by Job Market Monitor. Read the whole story at  The Next Trend in Employment: Retaining Workers in a Tight Labor Market |.