Companies make keeping employees a priority
As the economy picks up, companies are hiring again and putting a priority on keeping the workers they have, a recent survey finds.
That's good news if you are looking for a job — or hoping to get more out of the one you have.
“The attitude has gone from telling employees, ‘Be thankful you have a job,' to companies asking, ‘How do you hold on to the valuable talent you have?' ” said Sal Vittolino, a spokesman for global consulting firm OI Partners-Action Management, which conducted the survey. “The name of the game is retention.”
Of the 154 companies surveyed in May, 58 percent reported they added or plan to add workers this year. Just 8 percent expect to cut staff.
At the same time, a third of all employees plan to look for new jobs this year, according to a study by Harris Interactive.
To hold on to good workers — some waiting for years for the chance to change jobs — companies of all sizes are offering employees better compensation and benefits, more flexible hours, tuition reimbursement and even handwritten notes of encouragement.
One of the most popular incentives offered to retain and recruit workers is career coaching and development, which, to some employees, is worth even more than money.
Some companies are offering compensation increases of 10 percent to 25 percent, said Anup Popat, CEO of Systems Technology Group in Troy, Mich., which is working to retain employees and recruit talent.
Companies weigh the cost of keeping a worker with the cost of losing one, which, according to a report by the Society for Human Resource Management, can be twice the employee's salary.
At MIPRO, a Milford, Mich., software consulting firm, Vice President Larry Zagata said he and other executives often thank consultants with personal notes of appreciation, and sometimes even gift cards so that they can take their spouses to dinner.
“The cost of turnover in our industry is very high,” Zagata said. “You've got to do the little things.”
For workers, the improving economy and new hiring gives them the confidence and the opportunities they need to change jobs or seek a new position within a company.
Ed Lucas, who sought career advancement, a better schedule and a less-stressful workplace, said he left his job as a junior underwriter at JPMorgan Chase in Troy three months ago to become an assistant underwriter at Michigan Mutual in Southfield, Mich., a much smaller, but rapidly growing, mortgage lender.
During his interview, he saw a manager taking extra time to help a subordinate, an act that helped persuade him to make the change, he said.
“I was willing to take less to be a part of the company,” said Lucas, 35, who has worked in financial services for 18 years and acknowledged the switch made him uneasy at first. “I was at a crossroads. I just wanted to be a part of a team that wanted to expand.”
At the same time, other mortgage lenders are trying to recruit from Michigan Mutual.
“Our people are getting called, and a measure of how we're doing is: Do they leave?” said Hale Walker, Michigan Mutual's senior vice president and co-founder. “People typically don't quit a company, they quit a boss — or manager.”
Ari Kresch, CEO at 1-800-LAW-FIRM in Southfield, said employees “stay at places where they are happy.”
To help keep his lawyers content, he built an indoor office track. They use it to stay fit — and hold what he called walking conferences.
These days, the job market is so competitive even the experts who advise executives are having to offer more to keep employees.
Charlie Fleetham, the president of the small management consulting firm Project Innovations in Farmington Hills, Mich., said he recently granted an employee tuition reimbursement of about $1,200.
It was a small price to pay, he said, considering what it might cost to replace that person later.
Steve Barone, CEO of information technology company Creative Breakthroughs in Troy, said the business tries to create a culture where workers feel valued, get along and have fun. A few days ago, the employees decided to take a break and went to an amusement park to ride roller coasters.
Barone stressed that it's important to hire workers at competitive pay and benefits and that helps keep them from leaving later.
“It's deflating if you lose somebody because you thought you could save a dollar or two on them. So we don't do that,” he said. “We treat them well when things are bad and good — and their career development is thought out and on track.”
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- As banking goes mobile, branch closures rip through local economy
- Decoding mutual funds jargon
- No more room on iPad? You’ll need to trim some of that fat
- Natural gas industry buys share of Super Bowl spotlight
- Plus-size fashion bloggers recruited
- 8th-grader gets venture capital for inexpensive Braille-printer
- Kennametal plans plant closings, job cuts in fallout from oil and gas decline
- Employers prepare for demographic shift
- Cheap gas lets small business dream big
- Subaru BRZ still needs upgrades
- Trib 30 stocks drop to 4-month low