workspan
October 2009
by William Werhane, global managing director of Hay Group Insight, Hay Group's employee research division and Mark Royal, Hay Group Insight senior consultant
Retaining top talent is a key concern in good times and bad, given the importance of these employees to a company's success and competitive edge. Unfortunately, many organizations rely too heavily on compensation as the answer—a risky endeavor as dissatisfaction with pay is generally not what leads employees to begin exploring alternatives, although the prospect of better compensation elsewhere may solidify the decision to leave. Instead of zeroing in on compensation, organizations should focus on two key areas to keep and motivate their talent: increasing employee engagement and developing systems that provide better support for employees' success.
- Right now, as organizations need to do more with less and strive for greater efficiency, tapping into the discretionary effort of employees is all the more essential.
- To foster high levels of engagement, companies must make greater use of nonmonetary rewards, such as career growth opportunities, meaningful job designs and recognition programs.
- For an organization producing $10 billion in product, increasing productivity by 30 percent by creating a superior work climate would increase output by $3 billion.
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