
Once good employees are in place, leaders must do all they can to retain them. Many leaders and companies don’t have a good system in place to retain their employees. This issue is compounded when you throw in the fire happy leaders. It is possible for the fire happy leaders to hire and train good employees then fire them on a whim. A good employee retention system is a key for keeping the qualified and trained employees.
For an employee retention system to succeed, it must discourage leaders from firing people without taking adequate measures to help them succeed. The following are two safeguards that must be in place for the success of employee retention systems:
- The fire happy leaders must have disincentives for firing people and incentives for employee retention.
- The employees should have performance incentives and retention programs.
Firing Disincentives and Incentives Ultimately, fire happy leaders cost companies lots of money because each time a trained employee is lost, the company has spend money to train a new employee. With disincentives in place, fire happy leaders will slow down or stop firing people. The fire happy leaders that I am referring to are those that fire based on personality conflicts, differing opinions, etc. Some ways to disincentivize firing are pay freezes, pay cuts, holds on promotions, or demotions. Although some of these disincentives seem strong, it is very important for leaders to keep the trained employees within the company. The disincentives will encourage leaders to get over their personality conflicts for fear of punishment.
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