Overhauling Rewards and Work Systems
People work for different motivators. Some employees are primarily motivated by monetary rewards, others look for a good work-life balance, an still others, prefer a sense of achievement. Maslow’s Needs Hierarchy Theory, Aldefer’s ERG theory and many other behavioral theories expound what motivates people. People quit organizations because the benefits they enjoy may not align with what motivates them. For instance, a salary hike would hardly entice a skilled employee looking at self-actualization to stay, if the work offered does not challenge him. Redesigning job duties to make them more challenging may entice such employees to stay even if salary remains constant. Similarly, people with family may not quit a job that offers flextime or telecommuting options even with fewer benefits compared to a full-time nine to five job.
Organizations looking to meet their employee turnover goals would do well to understand what motivates each employee, and devise integrated retention strategies that include a flexible rewards and compensation system, a work allocation system, work timings and more, to align with the motivation of key employees.
Generally, few employees will leave an organization that offers challenging work assignments or significant job allocations that allow the employee to develop and grow. Specific strategies include maintaining healthy workloads without overburdening the employee, taking steps to establish a stress free workplace, involving the employee in decision making and allowing them to take ownership of work, recognition for accomplishments, flexible work schedules, opportunities for career advancements, and an opportunity to further interpersonal relationships at work, all backed by decent wages and benefits. A cafeteria system where the employee opts for the benefits they value most also helps reduce turnover.