Stop Using the “Goodies and Gimmicks” Approach to Retention, Part I
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Part One of a Three Part Series Published by ERExchange.com

Imagine a male colleague of yours coming to you for advice on how to save his troubled marriage. He shares his strategy: “She’s thinking of leaving me, so I’ve got to find the perfect present that will make her want to stay. I’m thinking Caribbean vacation or maybe get her a Miata … Do you think either of those would be the ticket or is there something that would work better?”

Upon hearing this, would your jaw not drop in disbelief? The question itself would be a pretty good diagnostic clue about why he’s having spouse retention problems. Although his approach to the problem is admittedly absurd, it bears a haunting resemblance to the way many – if not most – organizations approach employee retention.

For instance, how often have you been asked “So… what kind of program can you put together to help us reduce turnover?” or “I know morale’s pretty low around here… how about putting on an employee appreciation day?”

Managers and HR professionals who ask these questions have missed the point. Managers and HR professionals whose “retention strategy” revolves around Employee of the Month awards, cool prizes, Fun Fridays, and other things that money can buy; have missed the point. Employee satisfaction and loyalty doesn’t come from Goodies and Gimmicks.

When organizations focus primarily on Goodies and Gimmicks, they usually end up with one of two unpleasant outcomes. First, the cynical, jaded workforce that views these efforts with distrust, because their daily experience contradicts the intended messages of the gala events and “we appreciate you” programs. The second unpleasant outcome is the entitled, “what have you done for me lately?” workforce who sits back and waits for management to surpass their last bribery campaign.

There’s nothing wrong with fun events, prizes, and other goodies. It’s just that they’re the frosting, not the cake. When dealing with people issues, we must never confuse the frosting for the cake. Returning to our hypothetical example of the friend wanting to give his spouse a gift, there’s obviously nothing wrong with giving gifts, it’s just that he’s thinking that applying a “frosting solution” – a material possession - will solve a “cake problem” – relationship needs not being met. If these needs aren’t met, no amount of gift giving matters.

Creating a mutually satisfying, committed relationship with your employees also requires more than material solutions. Whether you frame your goal as “Improving Retention,” “Increasing Morale,” or “Becoming the Employer of Choice,” your strategy should focus on addressing those essential human needs that, when fulfilled, lead to satisfied, committed, productive workers.

Although age and other demographic variables shape each individual’s needs and desires, some needs are universal. We will focus on six human needs, both because of the central role they play in employee satisfaction and retention, and because many employers do a poor job addressing them. These critical human needs are:

  1. Pride in One’s Work and Employer

  2. Work That Has Meaning

  3. Understanding The Goal and One’s Role

  4. To Be a Player And Not Just a Hired Hand

  5. The Chance to Experience Efficacy

  6. To Be Heard
When management and employees co-create a work experience that satisfies these essential human needs, the organization don’t need a bevy of goodies and gimmicks to make coming to work rewarding. It’s like people and their hobbies. No one has to pay you to engage in your hobbies – doing them is reward enough.

In the next two parts of this article, we will use these fundamental human needs as a lens with which to examine your organization. The information derived from this exploration will help you formulate a retention strategy with substance. Each section will include a set of questions you can use to guide your conversations with your management team. I also strongly recommend that you create an Employee Advisory Council and involve them in all aspects of your retention initiative, beginning with the assessment phase.