Gindele says the dozen key employees at Dial One — what he calls the company’s “core” — include several mothers. For the past five years, Dial One has allowed these employees to take every other Friday off (which doesn’t count against their vacations). And Gindele recently offered his female vice president, who’s 44, a life insurance policy that will pay out $600,000 — on top of her 401(k) benefits — if she remains with Dial One another 15 years. “It’s kind of a ‘thank you’ for staying with the company,” he says. When the marketing manager at Full Spectrum Remodeling left for another company, Muscarella lured her back with a stronger compensation package and the provision that she could work from her home, thereby relieving her of a 45- to 60-minute daily commute.
No Surprises The best employees often seek new challenges that lead to more responsibility and higher income. So it seems logical that growth-minded contractors would have a leg up on employee retention, if only because they have more management slots to fill. When Swing Line Windows took on an Owens Corning Basement Finishing System franchise about two years ago, it immediately created management openings for offices in both Pittsburgh and Erie, Pa., Moeslein says. But expansion isn’t the sole answer when it comes to employee retention. When Full Spectrum opened new sun-room branches in Brick, N.J., and in Baltimore, it had to hire supervisors from outside because, Muscarella says, current employees were unwilling to relocate.
Many times, career opportunities for key employees are internal management jumps. Case, with about 300 employees in the Washington, D.C., area — two-thirds of them in the field — has promoted lead carpenters to project management and even sales positions, and has turned salespeople into general managers, Richardson says.
A.B.E. Doors & Windows in Allentown, Pa., has no immediate growth plans but is in the process of consolidating its showroom and warehouse operations. This should lead to promotions for some worthy employees, says Mark Rapchak, the company’s general manager, who started with A.B.E. 14 years ago in personnel and order-entry.
A.B.E. Doors & Windows reviews each of its 29 employees every year, during which time managers ask about career goals. For other contractors, review processes are more informal, and the jury’s still out on which method works best when it comes to addressing issues that might lead a valued employee to start looking elsewhere for work.
Dial One reviews all associates semiannually: The first is a merit review, the other a performance review not tied to compensation. At the performance review, the employee and manager set goals for the next six months, Gindele says. He adds that it helps when job descriptions list duties and accomplishments because you can evaluate people based on those descriptions. Full Spectrum reviews new hires after 90 days, 120 days, and then annually.
Wegner of ABC Seamless says the review process is important because some employees are too shy to initiate discussions with supervisors about their jobs or performance. “They don’t want to rock the boat, but you have to find out if they’re happy because by the time they tell you they’re leaving, it’s too late,” he says. Schwartz calls formal reviews “white lines on the highway” that provide employers and those who work for them with guidance about where they’re going. In her opinion, they shouldn’t be limited to annual sessions, nor should reviews score performance. She says that companies need to establish more consistent and regular lines of communication so that when issues are brought up in the course of a review, “it’s something [the employee] has been told all along.”
Experienced managers find that direct, frequent communication with employees is the best way to ensure that issues can be resolved before the employee considers leaving the company. Employees always want more and better feedback about how they’re doing. “We’re a small enough company that you can look in people’s eyes and tell if something’s wrong,” says Adler of All-Seal. Maceda of Stanek Vinyl Window, which reviews employees annually, says he’s on the factory floor daily, “listening to workers.” Statewide, which requires mandatory semiannual reviews, encourages frequent dialogue about job performance between employees and supervisors. “If it’s a surprise to a employee during the review process, then the manager isn’t doing his job,” McCourt says. —John Caulfield is a freelance writer and editor based in New Jersey.
The Boss’ Perspective San Diego–based TEC International, which touts itself as the world’s largest CEO membership organization, recently posted on its Web site a listing of best practices for retaining employees. “Companies that understand what their employees want and need in the workplace, and make a strategic decision to proactively fulfill those needs, will become the dominant players in their respective markets.” TEC states five reasons why employees leave:
- Poor working conditions
- Lack of appreciation
- Lack of support
- Lack of opportunity for advancement
- Inadequate compensation
The organization then recommends a five-step retention strategy that:
- Identifies key employees and positions
- Knows what motivates key employees on an individual level
- Provides deferred compensation plans
- Monitors and manages key employees’ performance
- Reviews those employees annually
TEC also provides some retention tips that include:
- Having longer orientation periods for new hires
- Using creative rewards and recognition
- Having employees sign noncompete agreements
- Creating annual “personal growth plans” for each worker
- Establishing formal succession planning
- Conducting exit interviews with employees who resign