Financial crisis and Employee Retention

In the previous posts I had written about motivation and retention in normal circumstances. After reading it someone asked me How can employees be retained during financial crisis?. The first thing that came to my mind is that; if an employee has to stay with an employer at the time of need, it has to be because of their loyalty and a feeling of being a part of that organization. This can be created only in the long run by the superiors with the help and co-operation of the HR department. Some of the tried and tested methods are the following:

1. They say- "keep the vibe alive" which is attained by open communication and making the employees feel that they are appreciated.
2. Reduce the number of days of work and thus reducing the payroll costs along with it.
3. Send employees (those who can afford) on offs without pay for education or otherwise- here subsidizing the cost of study will keep the employee with the organization at the same time will benefit the organization when the employee returns.
4. Giving the staff the option of working full-time  on 3/4 pay for 3 years and giving an off of one year with the 3/4 pay.
5. Cut down paid overtime giving employees a better work life balance and reduce the pay bill at the same time.
6. Analyzing the key talents not just the top employees but people who can think strategically.
7. Establishing retention plan for key employees by reviving the salaries with regard to market data to ensure the company is competitive.
8. But the most important thing is communication- clear and certain communication that the employees are valued and needed.

These are the methods that can be used during the financial crisis. However some methods are such that  they create a loyalty in the employees and these methods have to be practiced on a continuous basis:

1. Give the employees respect, kindness and dignity which will fetch loyalty of the employees.
2. In addition to compensation people should be involved in decision making. This not only helps retain the key talent but also gives better ideas to improve organization's effectiveness and progress.
3. Giving feedback on developing networks, maintaining work life balance, attaining skills training etc- this will build relationships, support groups and action groups.

References:

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