July/August 1999

The Golden Rule for Retention

Newspapers across the globe have hailed the U.S. economy as a "modern miracle." At 4.3 percent, the U.S. unemployment rate is at its lowest in 30 years. Productivity is up, the stock market is strong, and there´s nothing but more of the same in the forecast. All this good news does bring at least one downside for businesses, however: finding and retaining good employees. Because it´s an employee´s market, many companies are rolling out the red carpet to keep top employees.

But it´s not always more money or bigger company cars that lure the best workers. As you´ll see in this issue of Duck Tales"!,employees often appreciate the "little things" like a word of thanks or interesting assignments over "big things" like raises and promotions. Of course, the latter can´t hurt, but there´s nothing like respect and honesty to incite feelings of loyalty among employees. People who genuinely like their companies are far less likely to go job searching than those who are unhappy in their jobs´ no matter how much money they make or how great their benefits are.

You might say it all comes down to that little Golden Rule: treat others how you would like to be treated. If you can do that, you´re golden.

Finding Talent and Keeping It
Money is hardly the only incentive companies can use to attract competent people. Contrary to what most managers believe, employees are less motivated by cash than by a stimulating work environment and opportunities to play an active role in the company´s future. In a recent survey, managers and employees were asked this question: What motivates employees? The top three answers given by managers were compensation, job security, and growth opportunities, whereas the top three answers provided by employees were doing interesting work, being appreciated by management and being well informed. To attract and retain valuable employees, consider these tips:

1. Take interest. Learn about individual employees and what drives them. What do they care about most? What do they enjoy? What inspires them? Understanding employees´ preferences will enable you to create a work environment in which they thrive.
   
2. Validate employees. Show people that you´re interested in them. They need to know that their thoughts and concerns matter.
   
3. Seek employee feedback. To offer the best incentives, use employees´ input. You may not be able to meet everyone´s needs at all times, but your sincere efforts will be appreciated and result in high morale and productivity.

You Can Have It All
One of the greatest fallacies among managers today is that overworking employees is simply a fact of life. But all work and no play makes Old Manco Duck® a very dull bird. A growing number of companies, therefore, have decided to forego the 80-hour workweek for more satisfied, productive employees, and ultimately, better products and services for their customers.

Here are some other common misconceptions among managers today:

Lightening the load will result in lazy employees. The opposite is true, say workplace experts. If you want more productive workers, cut them some slack. Ernst & Young instituted a review committee to curb burnout, thereby reducing turnover.
It´s the employee´s fault. Overworked employees are not necessarily responsible for their excessive hours. While some workers believe they have to work long hours, management needs to evaluate work activities that may be eating away at productivity.
The client is king. In an effort to please customers, some managers jump at their every command, thereby forcing employees into intolerable work conditions. Deloitte & Touche, for one, decided enough was enough and cautiously offered a modified work schedule to its workers. While initially leery that its clients might react unfavorably, Deloitte & Touche found instead that clients were hoping for the same type of respite for their staff. In the end, the work was completed and clients and workers alike were pleased.

Walk the Talk
Working by a set of well-defined values and ethics is commonplace today. More and more mission statements include words like integrity, honesty, and family values every Duck® aspires to. But employees today are astute: Show them a mission statement with values like these, and they´ll hold an organization to its promises. Those companies that actually put their mission statements to work are reaping the benefits.

According to John Kotter and James Heskett, authors of Corporate Culture and Performance, over an 11-year period, companies that consistently valued and cared for their employees, customers and stockholders had revenue growth that was four times faster than other organizations . On the other hand, when an organization´s value statements don´t match its actions, morale plummets, productivity takes a nosedive and employees quickly head for the door.

For example, when the drugmaker, Merck, was acquired by Medco Containment Services, Medco workers wanted the family-friendly benefits Merck was known for. And they didn´t give up until the policies were built into labor contracts. Organizations are finding that employees as well as prospective employees expect organizations to fulfill their mission statements. Companies like Apache Corporation in Houston have found actions speak loudly. Apache polled its employees about values, created a matching mission statement, and then when the market plummeted, it stuck to its promises, avoided layoffs and continued training programs. The result? Employees happy with the company culture and the company.

Overhauling the Way We Work
It´s called "work redesign," and at least in some cases, it´s creating a saner, more efficient workplace. Work redesign is the employer´s answer to the employee´s problem of the - 90s´ too much work that leaves too little time for a real life.

Organizations like Hewlett-Packard and BankAmerica have discovered that when they ask workers what would enhance work and their personal lives´ and then actually implement their ideas´ everyone benefits. As one executive explains, "We want to know all the dumb things we do." Work redesign is based on the premise that strategies promoting efficiency should be shared with employees.

Those who´ve implemented work redesign say once they ask employees for suggestions, ideas for streamlining work come nonstop. At BankAmerica, for example, 60 percent of employees offered ideas on how to change the way projects are accomplished. Many of their ideas were implemented immediately, and the results came just as quickly. Customer satisfaction rose at two call centers, where focus groups and 800-numbers were used to solicit employee suggestions. Hewlett-Packard trained 30 work teams in a "work reinvention" strategy. Employees outlined work/life problems for the teams, who then redesigned schedules and addressed other employee concerns. The results include better employee retention and improved customer response time.

Quality for Hire
Some business leaders hope for the best; others expect it. Still others make it happen. For the CEO of Amazon.com, Inc., Jeff Bezos, nothing but the best will do. Bezos uses some innovative techniques to make sure every employee his company hires brings another level of quality to the organization. How does he do it?

Bezos encourages his managers to choose candidates with more skills and talents than the managers themselves. While that´s a daunting and sometimes unnerving task, as Bezos explains, "Managers have to understand that if they don´t hire them, they´ll be working for them down the road." Bezos also extols raising the bar for excellence. He continually raises the standards by which employees are hired. He also advises managers to hire employees who have talents and qualities unrelated to the tasks at work. Bezos says his workforce must be composed of "people who are interesting and fun to be with."

Bezos is also known for asking unorthodox questions during the interview process. For example, he may ask," How would you design a car for a deaf person?" Those who reply they would plug their ears and drive around before creating a design are the types of candidates Bezos admires because they´ve proven that they put themselves in the customer´s place. Reference checks are equally extensive. Amazon asks at least 23 questions in its reference evaluations to determine not only what candidates have accomplished, but also how they have accomplished it.

Thank You Goes a Long Way
Sometimes, behind-the-scenes support employees end up behind the flock in recognition. While many companies have formal incentive programs in place for management, not all offer equal recognition for their support staff. Rewarding good work not only leaves employees feeling appreciated, it serves as a powerful motivator for performance. "The effort is small, but the results can be big," says Bob Nelson, author of 1001 Ways to Reward Employees.

One bank with over 40 branches encourages workers to send thank-you notes to each other. Employees proudly display their growing stack of notes in a large gold paper clip they received in a quality training program. The bank, which receives a copy of each note, then enters the notes into raffles for small gifts. An orchestral organization, on the other hand, awards points to its support staff for work above and beyond the ordinary. Employees use their accumulated points for prizes such as restaurant gift certificates or free concert tickets. The organization also issues less traditional awards, such as the opportunity to leave work early.

Incentives like flex time and extra vacation days, say motivational experts, are more cost-effective than expensive incentive items. Verbal and group recognition can also be effective motivators. Coors Field, home of the Colorado Rockies baseball team, honors employees of the month with a chance to attend batting practice and meet the players. Employees are also recognized during games, often in the presence of over 50,000 fans.

Sincerely, Your Friend,

Manco T. Duck