How to Retain Employees Without Increasing Labor Costs

This question is pertinent to our economic times. Many companies like yours are looking for ways to attract, motivate and retain quality employees without necessarily increasing labor expenses. In truth, to retain quality employees with financial strategies solely would not retain all your employees and, non-financial strategies don't always have enough traction to make everyone stay. So in the end, a measured combination would likely be the solution. Yet, this is what has worked for me in the past:

First: Defend your employees: sometimes customers are obnoxious, supervisors are abusive and employees are rude. So take the stand and publicly defend and support that employee on the receiving end. A customer who is belligerent to your employees is also likely to badmouth and disrespect your company. And not all customers are worth keeping at any cost.

Second: Protect your employees: Even in less hazardous industries, accidents and safety accidents happen. Raise awareness and help them prevent work related accidents. Show your employees that you are concerned and diligent about their own safety.

Third: Reward positive decision making: Employees who have gone the extra step to analyze a business risk, to craft a new policy or, to come up with a new solution to an old problem, they did it without being paid. So the money is not necessarily relevant in these cases. That is when reward such like being included in leadership teams or like additional valuable responsibilities would have a fuller weight. Let them choose which additional responsibility they would want and give it to them.

Fourth: Fair and consistent treatment: Everyone understands what fair and consistent means regardless of the education level. Ask any five year old. This concept is basic yet employers don't seem to pay notice. Fairness and consistency make the company and its leadership appears predictable and safe in a positive manner.

Fifth: and Do not seek to retain everyone. Not all of your employees need to be retained. Allow for a natural exodus. Some people will move on because it is time to move on and that is not necessarily bad for the employee or the company. So determine and accept that a portion of your employees will go no matter what you do. If you spend too much time and energy in retaining them then (1) you would only delay the inevitable and, (2) others would ask why are you so clingy?

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