Workforce retention: How do you keep your best employees?
In my first two blog columns for Reliable Plant, we discussed the first two steps in becoming a talent management organization. Now that you have a good idea of how to attract and hire right-fit/best-fit talent, the question becomes, “How do you keep them?” After all, if you are going to spend the time and money to put a process in place for recruiting and hiring the best of the best, it is self-defeating to drop the ball after the employee comes on board.
Jac Fitz-enz, author of the book “The ROI of Human Capital: Measuring the Economic Value of Employee Performance”, had this to say about corporate culture: “The more I study organizational profitability, the more I am convinced of the power of culture.” He cites a study published in Fortune magazine that reported on the 100 most admired companies in the world. The study found that corporate culture was a key factor in differentiating top-performing companies from average companies. Bruce Pfau of the Hay Group, who led the study, said, “The single-best predictor of overall excellence was a company’s ability to attract, motivate and retain talent.” CEOs, in referring to this study, said that corporate culture was their most important lever in enhancing this key capability.
According to Bain & Company in an article published in Harvard Management Update (January 2008), 91 percent of the 1,200 senior executives at global companies surveyed agreed that “culture is as important as strategy for business success.”
The foundation for employee retention is a strong orientation program that conveys the culture of the organization and ensures that new employees understand their role in delivering on that culture. It clearly communicates expectations of employees’ behaviors and actions while on the job and provides the tools that enable the employees to deliver on those behaviors and expectations. Most companies have an orientation of some kind. But I am not referring to eight hours in a room reading from the policies and procedures manual.
So, what are the elements of an effective orientation program, taking into consideration the specific needs of the organization, its corporate culture, and the employee and customer demographics of the region? Very broadly, they are:
1. Introduction: A warm welcome sets the tone. Every person should be greeted and welcomed personally by the facilitator of the program. Whenever possible, a personal welcome by a company executive makes a lasting, positive impression.
Sidebar: One organization that we have recently assisted with the redesign of their orientation program now has the CEO make an appearance at the beginning of each program. She takes about two minutes to introduce herself and tell the group how excited she is to have them on board. The goal is for her to make her welcome as a personal appearance, but for those times when she is not available, they have created a video that is shown at the very beginning of the orientation program. The response from the groups so far has been very exciting. In evaluations at the end of the program, the No. 1 comment is that having the CEO welcome them makes them feel special and valued.
2. History: Give the new employees a sense of where the company has been. Only by understanding where the company has been and how it began can the new employee understand how it arrived at its current position in the market place. The history should include stories about the mistakes, the struggles and the successes of the company that give the employees a sense of the real people and founders that are the core of the current culture.
3. Present: Talk candidly about where the company is today - who you are, how you operate, and how customers interact and do business with you. This is also a good time to talk about current milestones and successes, and the processes, policies, procedures and philosophies that have made the company successful.
4. Future: Clearly and passionately articulate the vision for the future and the employees’ role in making that vision a reality. If possible, give information regarding exciting projects on the drawing board and the benefit of joining the company at this time.
5. Tools/Resources - to include but not limited to:
- Policy and procedural manuals
- Contact lists
- Employee handbook
- Insurance information
- Other collateral deemed necessary
- *Service theme
- *Service standards
6. Fun: A great orientation program builds in fun through activities and interaction. For example, when I was a traditions (orientation) instructor at Walt Disney World, we interacted with the new cast members (employees) with a quick and simple activity. Each table was asked to name as many Disney characters as possible in one minute.
It seems frivolous and a little silly, but the activity actually has meaningful purpose:
- It fosters teamwork, a big part of Disney’s culture.
- The animated characters from Disney’s world-famous films are not only part of the company’s culture, but guests often ask cast members questions about characters.
- It engages the participants and increases the energy level.
One of our clients who we are assisting with a redesign of their orientation program is incorporating an activity they call “Show what you know” at the end of each major segment of the program. They are presenting it like a game show and the participants get small rewards for answering questions related to the module they just heard. Again, this small activity has a multi-purpose goal: It keeps the energy level high and it ensures that the participants are retaining information.
*Below is a brief explanation and definition of a service theme and service standards:
Service Theme:
The service theme represents the purpose or promise statement. It does the following:
- Supports the brand promise
- Identifies a common goal
- Supersedes all tasks
Service Standards (also called Service Values):
Because service is an integral part of the long-term success of an organization, a supporting structure must be in place. We call these service standards or service values. They:
- Define service
- Enable employees to make decisions, make judgments and prioritize actions
- Ensure consistency in the delivery of service
Service standards provide the tools that employees need to deliver on the service theme. They are prioritized and ranked by order of importance, defined clearly for the new employees, and they must be told how to use them to make good decisions in the field. Typically, companies utilize three to five service standards. For example: A bank for whom we provided consulting and training services determined that their services standards are:
- Security
- Accuracy
- Professional courtesy
- Responsiveness
Security is first because, through surveys, the bank learned that their customers considered courtesy and responsiveness, while important, secondary to the security of their money and the accuracy of transactions.
Teaching the service theme and service standards to new employees in orientation is one way of ensuring that all employees understand what is expected of them and provides the tools that will enable employees to consistently deliver on the common goal(s) of the organization.
An additional note about orientation
One of the questions that we frequently get from our clients is “How many hours per days should we devote to orientation?” Most of our clients find that an effective orientation is comprised of a seven- to eight-hour day to address the topics we have discussed above and a second day of three to four hours to convey policies, procedures, review insurance, etc. However, each organization is different with varying needs. Only you can determine what will work for you. The key is to remember that your orientation program lays the foundation for your expectations of the new employees and provides them with the tools and resources to deliver service that is in alignment with your culture and your values.
We would be very interested in hearing about your orientation program. If you have questions or need clarification on anything discussed here, please feel free to contact me at Debbie@globalLSA.com. You may also want to visit www.globalLSA.com to see offerings from Leader’s Strategic Advantage.
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Filed Under: People Management | Tags: employee engagement, hiring, mentoring, talent management

Comments
By Leticia Casarin on February 17th, 2009 at 1:40 pm
How successful has this approach been with the economic downturn?
By Debbie Zmorenski on February 22nd, 2009 at 2:01 pm
Hello Leticia:
You have asked a great question! The answer is this: All of the clients that we have assisted in implementing an orientation program that aligns with their culture and enables them to clearly state expectations for their new employees have seen a reduction in turnover. Now, that’s not to say that a strong orientation program alone will reduce turnover. However they and we agree that if you are spending the time and money to recruit and hire right-fit employees, the next measurable step is to lay a foundation through your orientation program that gives the employees the tools they need to be successful in their jobs and assure that they feel good about working for you.
There are many stats out there in the business world regarding the cost of turnover; sometimes you will hear that the cost of turnover is as much as 3 or 6 times the salary of the person who leaves, depending on their level and status in the organization. No matter which numbers you use to measure turnover, one thing is definite–turnover is costly!
In the past, during economic downturns, most companies cancelled all training. Today, premier organizatons who are future minded and progressive, realize that it is counter-productive to cut all training. It makes much more sense to determine which training programs deliver a return on the human capital investment. A good book to read is The ROI of Human Capital by Fitz-enz, mentioned in this BLOG. While not a new book, it is especially relevent during these tough times.
Last year we designed an orientation program for a major medical facility in South Florida and have been asked to do the same for another of their hospitals. Additonally, I am in the process of assiting a not-for-profit health care organization redesign their orientation to improve its effectiveness and to ensure that the orientation program sets the stage for their very unique culture.
So, the short answer to your question is that, as part of many resources that organizations can use to survive these tough economic times, a strong talent management program is one that delivers a return on investment, and an effective orientation program is a critical element of that program.
I hope this answers your question. Please feel free to contact me at debbie@globalLSA.com if you have further questions or need additional information.
By v.kulasekaran on March 27th, 2009 at 11:50 pm
need time to comment
By B D PAWAR on May 25th, 2009 at 5:16 am
Good thing you are doing! Nice blog.
Caring of employess and sharing of knowledge is most important in any area
By Penny Brichta on August 18th, 2009 at 1:38 pm
I like your practical approach. From a Human Resources perspective, the effectiveness comes from partnering with senior management. If you can get the top person with you, you can greatly impact the culture.
By Debbie Zmorenski on August 18th, 2009 at 3:01 pm
Hello Penny:
You’re right–the effectiveness of any retention process is reliant on top management’s buy-in. With executives on board, the sky is the limit in impacting cultural change. In fact, I will stick my neck out and say that without top managment’s support, there can be no real effective cultural change of any kind.
However, I do believe that management can impact the culture within their scope of control–their department/s and/or division/s and we are always encouraging managers to do anything they can to implement effective retention policies and processes that are within their parameters of authority.
Thanks for the input!
Debbie Zmorenski
LSA Partners