Recent studies have shown that companies are not doing what they should to retain their top-level talent.
As employers laid off workers during the recession, those remaining were asked to take on even more responsibilities. This has led to a rather hefty increase in the number of disengaged workers and plummeting morale. Moreover, retaining talent has also become an issue with the millennial generation as well: younger workers don’t share the sense of loyalty toward an employer as previous generations did.
As a result, recognizing and rewarding good work is now essential to keeping the best workers.
It doesn’t seem all that difficult to figure out who your top performers are and to reward them accordingly, yet – surprisingly – not that many companies are good at doing this. Doing so involves a process management strategy that theorists call segmentation, which is the process of determining who is contributing the most to the company’s performance and then developing a management and rewards program designed specifically for these people.
According to studies, the top five factors influencing employees’ decision to remain with a company are the nature of the work they are doing, salary and other compensation, the work environment, opportunities for professional development/career advancement, and their co-workers.
Top performers want to do work that is interesting and that challenges them. They want to feel they are really making an impact with what they do. And they want to do that work at a company that supports them and appreciates their work. They also want an opportunity to grow in their work and to advance.
Many companies know who their top performers are, but only about one-quarter of the firms surveyed take the next step and recognize standout employees. Moreover, companies also do little to figure out which employees have those skills that are crucial to the company’s success.
Companies need to do more, according to business experts. Recognizing top performers is only one phase of retaining top talent. Once you have identified the best people, you then need to work to set up a customized training and development plan for them.
To hang on to their workers, companies need to focus on those employees who really do the most to drive the business.