OPENING DISCUSSION: EMPLOYEE RETENTION How Can Employers Kee The' Performers? p H Top Employees Who pmdUCE quality work and enhance a company's image are Prized assets to any organi- zation, EmDIOYErs want to keep their top performers because the costs of replacing them are high. When experienced employees leave a company. they take valuable skills and knowledge with them, possibly to a competing company, and are usually replaced with new employees who require significant training and time before they become productive. Training and time cost the company money, and if the new employee is not Successful in the job role, the costs incurred by the company are even greater. Due to Canada's shrink- ing available workforce (because of an aging popula- tion) and talent mismatch (job seekers skilled in areas where jobs are not available]. companies may not only have difficulty finding rightfit employees but are also in continuous competition to hire these employees Jefore their competitors do. Employers may have a difficult time retaining top-performing employees if they don't understand what employees want. Managers do not always motivate employees in a fashion that aids retention. Studies repeatedly show that the number one reason why employees choose to stay at or leave their Current employment is their relationship with their supervisor or manager.1 Employers need to offer incen~ tives that motivate and encourage emplOyees to stay with the company. One company that has successfully created a work ing environment that engages employees and supports the creative experience is 5A3, the world's largest pri- vately held software company. with more than 12 000 employees in 400 offices worldwide .2 By providing employees amenities such as health care. subsidized child care. a recreation and fitness centre. numerous wellness programs. flexible work hours, free car park- ing, religious observance room, profit-sharing. tuition subsidies, and a number of other wonderful benefits, the company boasts one of the lowest employee (continued) turnover rates in the industry: 2.6 percent, while the infotech industry average is 22 percent.3 The company welcomes employees to provide confidential feedback on their manger's performance and each year con- tracts independent consultants to conduct confidential employee satisfaction and engagement surveys. Selected multiple times over the past few years as one of Fortune's 100 Best Companies to Work For,'1 SAS believes that happy. healthy employees drive the inno- vation that keeps SAS in a leadership position among BISCUSSEUN QUESTIONS 1 . What would make you want to quit your job? . cs vendors; such an atmosphere is in art thanks to the policies of SAS CEO Jim GOOdnight_ :ccording to Good night. 3A5 fosters a creative environ. ment by:5 I Keeping employees intellectually engaged I Removing distractions so employees can do their best work. . . I Making managers responsrble for sparking creativity. _ _ _ I Eliminating the arbitrary distinctions between administrative \"suits" and more abstract \"creatives.\" I Engaging customers as creative partners. in addition to encouraging strong professional lives, SAS supports its employees in their private lives. "The corporate philosophy is. if your fifth grader is in his first school play, you should be there to see it,\" says Goodnight.5 Such a philosophy has placed 8A8 on Working Mother magazine's list of best companies multiple times. 2. Besides the costs involved in hiring and training a new employee. what other losses might a company incur when a new anioyee does not work out and is asked to leave? 3. What do you think is the biggest motivator for most employeesmoney. interesting work. recognition on the job [employee of the month}, or something else? Which incentives most appeal to you