If Money is Your Only Retention Plan, You’re Not Going to Retain People

If Money is Your Only Retention Plan, You’re Not Going to Retain People

money

While interviewing two staffing executives for our latest e-book (click to download), “What You Don’t Know About the War on Talent,” a secondary question came up when discussing their employee retention plans. I asked them, “How do you retain a great employee when a discrepancy in pay exists with other industries?” For example, how would an all-star sales rep feel working in copier sales, where they could make a higher base salary working for say…pharmaceutical sales?

Their answers provided tremendous insights for hiring managers and executives at any level, in any industry. Below I have summarized these insights, and included some audio clips from the interviews.

Brendon Davis, President

Really focus on what makes your company great, and market the $#*! out of that.

Communication is the number one factor for retaining employees, says Davis. While there may be a discrepancy in pay between your organization and other industries, be laser focused on what makes your company great, and market the $#*! out of that. Make a pros and cons list about working for your business and come up with a game plan to share the pros with your employees via company announcements, posters or newsletters that remind people of the differentiators about your business. For example, the intangible things that add up that an employee would not be offered at other companies. Communicate other factors that come into play such as cost of living vs. office location, your culture, etc.

Ryan Clutterbuck, Chief Operating Officer

“If money is your only retention plan you’re not going to retain people.”

You have to have passion. If you’re passionate about what you’re doing, and hire the right people, it’s not always about money. Money is obviously a motivator but there are other things that keep people going. Whether it’s the culture, career-pathing, or giving people the opportunity to have an impact on other aspects of the business, you cannot simply rely on money as your retention plan. You need to create an environment that they can be passionate about and can contribute to.

What does your company do to retain its employees? Comment below or Tweet us @TheDavisCos.

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