Jay Sachetti joined Jeff O’Brien, partner at Husch Blackwell and Dyanne Ross-Hanson, president of Exit Planning Strategies talked about the market for mergers and acquisitions, exit planning opportunities for companies that don’t end up for sale and how companies can maximize their eventual sale price during an early October panel at the first Upsize on Tap event at Summit Brewing Co. in St. Paul.
When the state Legislature passed a law requiring employers to provide paid leave and safe time for employees, Justin Bieganek started hearing differing details from friends, colleagues and peers.
MINNESOTA IS HOME to one of the lowest unemployment rates in the country, a statistic that has many local job seekers beaming with confidence. For businesses, a low unemployment rate suggests a tight hiring market where skilled workers are harder to find and competition for those workers is high. Once companies have hired a top professional, retention is crucial. In May 2018, the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey reported the quits rate, which measures the number of quits as a percentage of average employment, reached 2.4 percent, its highest level in more than 17 years. More than 3.5 million people quit their jobs that month. Since then, the quits rate has dipped only slightly.
To strengthen recruiting and retention efforts, it may help hiring managers to know the reasons why workers choose to leave their jobs. In a recent survey by staffing firm OfficeTeam, a division of Robert Half, professionals were asked the most likely reason they’d quit their job. The top answer? More money, according to 44 percent of Minneapolis workers. Other reasons cited by Minneapolis workers include being bored or unchallenged at work (15 percent), not feeling appreciated (13 percent) and leaving for a company with a higher purpose (8 percent).
For many professionals, the start of a new year signifies a time to set new career goals and to create an action plan for seeing them through. Those goals may include asking for a raise or finding a new job. As workers strategize on how to broach these topics, managers may want to prepare for these conversations ahead of time by doing their research.
For instance, in the event an employee wishes to discuss pay, it’s best to benchmark salary using any number of dependable resources. Some websites show average pay for certain roles based on area. Other tools, such as salary guides, can be helpful in drilling down further and evaluating salary ranges based on skill level. Salary guides help managers customize compensation for individual roles based on title, location and experience. For a quicker assessment, online salary calculators can also be useful.
Even professionals earning healthy salaries may still feel undervalued or underappreciated for their contributions. Pay alone does not guarantee employee satisfaction or happiness. In fact, many companies are offering higher salaries to workers who announce they’re planning to quit for a better job opportunity. Our research suggests this method serves only as a stop-gap retention strategy for employers and isn’t a long-term career solution for employees. Employees who accept counteroffers typically end up leaving the company within two years. Counteroffers are typically a knee-jerk reaction to broader staffing issues and while they may seem like a quick fix for employers, the solution is often temporary.
In today’s hiring environment, it’s critical for employers to offer solid benefits, perks and incentives, along with a positive corporate culture, to attract and retain top performers. Another survey from Robert Half revealed that flexible work schedules, a compressed workweek and the ability to telecommute are the most sought-after nonmonetary perquisites for workers. However, while many companies offer flexible work schedules, fewer than one in five offer shorter workweeks or remote work options.
While pay is still king, there’s clearly more to puzzle. In today’s competitive hiring environment, job candidates seek more than just salary and bonus. They’re looking for the complete package and place added emphasis on quality of life. Companies that offer in-demand nonmonetary perks in addition to a competitive salary and benefits are likely to land and keep top performers.
Employee compensation — It’s essential in this competitive labor market for companies to offer attractive compensation packages. That includes salaries, of course, but also bonuses, paid time off, health benefits, retirement plans and all the other perks that can distinguish one workplace from another.
Recognition and rewards systems — Every person wants to feel appreciated for what they do. At the minimum, managers and leadership should be thanking direct reports when they go the extra mile, whether it’s with a sincere email, a gift card or extra time off. You may also want to consider putting a more formal reward system or program in place. This could involve an award, a special title or simply bragging rights. It all boils down to showing appreciation for employees, which is key in this tight hiring market.
Work-life balance — What message is the company culture sending?
If staff are expected to regularly work long hours, the company will likely run into issues with employee retention. Burnout is real. A healthy work-life balance is essential, and people need to know that management understands its importance. Encourage staff to take vacation time and, if late nights are necessary to wrap up a project, see if you can offer late arrivals or an extra day off to compensate and increase job satisfaction. Many companies offer telecommuting or flexible schedules to improve work-life balance for their employees.
A final tip: Remember to assess employee retention strategies at least once a year. Stay current on market salary rates, benefits and best practices in developing workplace culture and manager-employee relations. Doing so will help keep staff morale high and turnover low.
