Manager’s Trust and Employee Retention

By Jared W. Geers (TNU 2006)

A hot topic in many organizations today is employee retention. How do organizations foster the right environment in order to maintain healthy relationships with their people and in turn, keep those people on their rosters ? Employee retention is the result of many factors, each with varying levels of impact on how well firms can keep their people. One of the most important factors leading to high levels of employee retention is a manager’s trust.

In the article “Manager’s Trust, A Key Factor in Employee Retention,” author, Caela Farren, a highly respected writer and organizational scholar, offers “retaining employees requires more than offering a bigger paycheck today. The level of trust a manager has for an employee can make or break the relationship.” (Caela 1999)
Caela points out that in a recent survey of over 500 professional conducted by Master Works, Inc., the number one reason that employees left their position with an organization was because their manager or direct supervisor failed to develop a trusting relationship with them. The survey also showed that employees would rather stay in their current organizations due to the reality of having to start all over again in another firm, but also noted that they would leave and find another position if a trusting environment was not available in their current positions.

In this same article, Caela points out five practices that managers and leaders can follow in order to establish trust among them and their employees. The following are called The Five A’s.

I. Appreciate the unique life needs of employees.
II. Assess and respect the capability of employees.
III. Anticipate and speak about the organization’s future.
IV. Align employees’ aspirations with the mission and strategies of the business.
V. Accelerate learning and look for learning opportunities.

It is likely that when a manager is able to incorporate The Five A’s into the interactions and relationships with his or her employees, they will be doing great to establish the manager-employee trust that is crucial in retaining the best people.

Rensis Likert’s Model of Management Systems also supports Caela’s Findings. Likert categorizes the approaches to management in four different systems or levels. Dubbed “System 1, System 2…etc.,” these systems describe varying ways in which management relates to their employees. System 4, said to be the most effective system of management, according to Likert, is described as the following:

Management has a “complete confidence and trust [in their employees] in all matters. Economic rewards are based on compensation system developed through participation; group participation; and involvement in setting goals, improving methods, and appraising progress toward goals.” There exists “Extensive, friendly interaction with high degree of confidence and trust.”

The reader should note that Likert’s highest regarded system of management coincides directly with that of Caela’s in that a manager must have a “high degree of confidence and trust” in the manager-employee relationship. According to these two scholars, as well as in this author’s experience, this trust will lead to the most productive and longest lasting of employer-employee relationships.

Works Cited

1. Caela, Farren. “Manager’s Trust, A Key Factor in Employee Retention.” ACA News. 1999.
    

2. Hersey, Paul; Blanchard, Kenneth H.; Johnson, Dewey E. Management of Organizational Behavior, Leading Human Resources. Prentice Hall. Upper Saddle River, NJ. 2001.

Here are 10 more reasons to hire veterans according to www.HireVetsFirst.gov: 

http://www.military.com &Larena Mitchell (Systems Management, TNU 2006)

Looking for a hard-working, motivated, ethical employee? Try hiring a U.S. veteran. Veterans are disciplined team players that can bolster any employer's business. What's more, hiring veterans is not only a good idea, its good business.

1. Accelerated learning curve. - Veterans have the proven ability to learn new skills and concepts. In addition, they can enter your workforce with identifiable and transferable skills, proven in real-world situations. This background can enhance your organization's productivity.
    

2. Leadership. - The military trains people to lead by example as well as through direction, delegation, motivation, and inspiration. Veterans understand the practical ways to manage behaviors for results, even in the most trying circumstances. They also know the dynamics of leadership as part of both hierarchical and peer structures.
    

3. Teamwork. - Veterans understand how genuine teamwork grows out of a responsibility to one's colleagues. Military duties involve a blend of individual and group productivity. They also necessitate a perception of how groups of all sizes relate to each other and an overarching objective.
    

4. Diversity and inclusion in action. - Veterans have learned to work side by side with individuals regardless of diverse race, gender, geographic origin, ethnic background, religion, and economic status as well as mental, physical, and attitudinal capabilities. They have the sensitivity to cooperate with many different types of individuals.
    

5. Efficient performance under pressure. - Veterans understand the rigors of tight schedules and limited resources. They have developed the capacity to know how to accomplish priorities on time, in spite of tremendous stress. They know the critical importance of staying with a task until it is done right.
    

6. Respect for procedures. - Veterans have gained a unique perspective on the value of accountability. They can grasp their place within an organizational framework, becoming responsible for subordinates' actions to higher supervisory levels. They know how policies and procedures enable an organization to exist.
    

7. Technology and globalization. - Because of their experiences in the service, veterans are usually aware of international and technical trends pertinent to business and industry. They can bring the kind of global outlook and technological practical understanding that all enterprises of any size need to succeed.
    

8. Integrity. - Veterans know what it means to do "an honest day's work.” Prospective employers can take advantage of a track record of integrity, often including security clearances. This integrity translates into qualities of sincerity and trustworthiness.
    

9. Conscious of health and safety standards. - Thanks to extensive training, veterans are aware of health and safety protocols both for themselves and for the welfare of others. Individually, they represent a drug-free workforce that is cognizant of maintaining personal health and fitness. On a company level, their awareness and conscientiousness translate into protection of employees, property, and materials.
    

10. Triumph over adversity. - In addition to dealing positively with the typical issues of personal maturity, veterans have frequently triumphed over great adversity. They likely have proven their mettle in mission critical situations demanding endurance, stamina, and flexibility. They may have overcome personal disabilities through strength and determination.
    
    

A Company's Success Hinges on G.R.E.A.T. Employees

By:  Johnny Malkiewicz, Debbie Slocum, & Aimee Wise, (TNU, September 27, 2005)

According to the article, Recruiting Toolkit; the success of a company is attributable to the talent of its employees.1

Filling open positions within a company or organization can be a daunting task, regardless the size of the company or the number of positions to be filled. It is important to identify and document the requirements of the job, establishing the skills that the qualified candidates must possess, the applicable rate of pay, and other demographics that relate to the position. Once the initial preparation is complete, the employer must then embark on the difficult, and time consuming task of recruiting for the position.

Local employers often have job fairs on site to promote employment opportunities. Metropolitan areas, college campuses, and employers of all sizes host job fairs to find the right employee for the right job. What is about recruiting that makes the task so difficult? The methods of recruiting include a variety of resources not only limited to printed employment ads within the local newspaper. Organizations now have access to the web, and to sites such as www.careerbuilder.com, or www.monster.com,  even local websites to post ads. If all else fails, and to reduce the agonizing venture of scanning resumes, there is always recruiting agencies to contact. Sure, the printed ads can be effective for specific jobs such as over the road drives or other professions where computer literacy may not be an avenue to explore. An article found on the SHRM website (Society for Human Resource Management) titled Recruiting2, states that recruiting should fall into the strategic planning’ category of human resource management. The article continues to say that there is thirty thousand plus all the job boards on the internet and many more are being created every day.

Employers must take extra steps to create fulfilling jobs, recruit through a variety of methods, and think outside the box. If an ad in a local newspaper does not yield the desired results, post an ad on the web or on the company intranet. Ads should include the specific functions of the position and a teaser as to the type of company to attract excellent and high caliber employees.

An article titled Fifteen Tips for Creative Recruitment3 by Lin Grensing-Prophal provides the following recruiting suggestions:

1. Existing applicants
2. Your employees
3. Friends of friends
4. General Media
5. Job Hotline
6. Internet
7. Trade and lifestyle publications
8. Schools
9. Job Fairs
10. Open Houses
11. Other employers
12. Word of Mouth
13. Rejected Applicants
14. Temporary Services
15. Your customers

There could be current employees within the organization interested in the open position that may even reduce the need to finance the recruiting effort. Word of mouth by current employees can prove to be an asset to a company. Companies could implement a bonus referral program to existing employees. The best complement to a company is having satisfied employees that will promote the organization.

Sona MedSpa International - corporate headquarters, an employer of Franklin, TN hired their associates as follows:

35 % of employees through by word of mouth
30 % from recruiting agencies
15 % through relocations of parent company
5 % employee referral
15 % through employment ads printed in a local newspaper.

These results will vary by employer, but it becomes apparent that hiring the best employees demands organizations to utilize all available options.

So, when recruiting the best employees, keep the following suggestion found in an article titled Hire G.R.E.A.T People4 by Lucia Hamilton in mind:

G – Growing: interested in personal and professional growth, open to feedback
R – Responsible: has a strong sense of commitment to the organization and the job
E – Engaged: displays good alignment between his or her motivators and the position
A – Affiliative: has the ability to work successfully with others and build relationships
T – Thinker: has a sound problem-solving approach and makes strong decisions

Happy hiring!

Assessment Testing will assist organizations screen applicants and decide which the best candidate for the job is. Testing should involve not only their technical skills, but also their personality and behavior traits to insure that the candidate is also a good fit for the company’s culture. The personality and behavior traits necessary for a particular position in some cases can be more important than the technical skills. The organization should understand that is often times easier to teach skills to employees than it is to change behavior or personality. There are tools on the internet to help with this process in addition to websites such as www.profilesontheweb.com. “The Profile XT” is a good assessment tool to match the correct people to the right jobs.

After the appropriate assessment testing, a reputable company such as HireVU through Retail Alliance among other credible companies can conduct a thorough background check. The hiring employer can entered the information via the web and obtain the results within 24 hours. This will help your company to preserve your safe and secure workplace and will help decrease your workplace liability. The background checks can provide the following information: social security number verification, an identity check, criminal record check, motor vehicle records, and credit reports. A local walk in clinic can conduct a drug screening.

After you have decided to hire the perfect candidate for your job opening, it is imperative to complete all required new hire paperwork in an accurate and timely basis. This paperwork includes the W-4, the State of Tennessee New Hire Reporting and the US Department of Justice Employment Verification forms along with signing up for employee benefits.

Providing a work atmosphere that employees enjoy working in can be extremely beneficial for both the company and the employees. An unhappy work force can lead to costly expenses for a company. One of the costs is the additional expense required when a company has a large turnover rate. If companies are not successful in keeping their employees for long periods, it can lead to expensive retraining cost and slower production levels. Therefore, it is beneficial for a company to provide a good working atmosphere, so the employees will want to stay and want to see the company be successful. Some recommendations that can help provide this good working atmosphere include proper training, encouraging employees, and providing opportunity for future promotions.

Providing an employee the opportunity to succeed through the proper training is essential to accomplishing both the company and employee’s goals. The company wins with a faster and more productive start-up curve with new employees. The new employee wins by feeling good about their early job performance and avoiding becoming frustrated with not knowing what to do. Dr. Deming refers to the importance of training in Point Six of his “Fourteen Points” of quality improvement.4 Utilizing statistical control charts can show whether a person is trained properly. There will obviously be a start-up curve with any employee but showing improvement through statistical analyst should provide encouragement, so the employee does not become frustrated. In the “Managing of Human Relations” book by Luis R. Gomez-Mejia, David B. Balkin, and Robert L. Cardy5, there are four important questions to ask about training:

• Is training the solution to the problem?
• Are the goals of training clear and realistic?
• Is training a good investment?
• Will the training work?

Taking the time to answer these four questions can help employers better understand their training practices. Providing the proper training cannot only lead to a more productive performance, it can also prevent unnecessary and costly training. Affective training programs can lead to a win-win situation for both the company and the employees.

One of the easiest and cheapest ways to motivate employee is through encouragement. There are several ways to encourage employees, but one of the best ways is by eliminating the fear of making mistakes. Dr. Deming explains in Point Eight that it is important to drive out fear, so employees will ask questions allowing them to better understand what the job is or what is wrong or right about their performance. Most companies claim their most valuable asset is their employee. Encouraging these important assets will only increase the possibility of employees wanting to stay with the employer and in return, provide the company with an experienced workforce.

Another approach to a productive and happy work environment is the feeling of a brighter future. Allowing for possible promotion opportunities can motivate employees to want to work harder and work better with their fellow employees. An employee with an ambitious future will also be more interested in the company’s success. An attribute of a successful manager is how well he or she prepares their employees for possible promotions. Providing feedback to help an employee improve will help both the employee and company in the long term. There are several different methods to provide employee feedback. The most important message is to provide information so the employees will work toward continued improve and position themselves for possible promotions.

The Gung Ho book summarizes how important it is to train and monitor performance, encourage employees to make decisions, and provide them the opportunity to provide input toward success. It provides two contrasting management styles with the same company. The department with the approach of letting the employees make decisions is much more successful than the departments where management or people not doing the actual job occupations making the decisions. This particular system derives from three old Indian proverbs listed below:

• The Spirit of the Squirrel
• The Way of the Beaver
• The Gift of the Goose

Putting these three approaches in to place throughout the rest of the plant allowed the plant to be successful and stay open, when it appeared they were probably going to be shutdown. Proper training, encouraging employees, and providing the possibility for a brighter future are some of the ways a company can provide a good working environment for their employees. However, the employees are not the only ones that benefit for this working environment; the company will be more successful in the long term.

Work Cited

1. Recruiting Toolkit. 9 September 2005. www.shrm.org/hrtools/toolkits_published 

2. Recruiting for Retention. Danny W. Avery. 2002.  www.shrm.org/hrresources/whitepapers_published   

3. Fifteen Tips For Creative Recruitment. Lin Grensing-Pophal. June 2002. www.shrm.org/hrresources/whitepapers_published/CMS_000359 

4. Hiring G.R.E.A.T People. Lucia Hamilton. February 2005. www.shrm.org/hrresources/whitepapers_published/CMS_011676 

5. Walton, Mary. The DEMING Management Method. New York: The Berkley Publishing Group, 1986.

6. Gomez-Mejia, Luis R., Balkin, David B., Cardy, Robert L. Managing Human Resources. 4th Edition. New Jersey: Pearson Education, Inc., 2004.

7. Blanchard, Ken, Bowles, Sheldon. Gung Ho. New York: William Morrow and Company, Inc. 1998,

According to the U.S. Bureau of Labor Statistics, by 2008, women and minorities are expected to make up seventy percent of new entrants to the workplace. These statistics highlight the fact that the U.S. population is becoming more diverse by the day and that to remain competitive in today’s world, companies need to embrace diversity as a strategic initiative (U.S. Bureau). Companies that embrace having a diverse workplace culture and train and educate their employees on working together, position themselves well to take advantage of the global competitive environment. Diversity issues are not limited to race, ethnic background, religious beliefs, and sex, but also include an aging workforce and technology issues.

Kelly Julow (TNU 2005)

U.S. Bureau of Labor Statistics, www.bls.gov, August 29, 2005.

Non-Voluntary Benefits Required for Today’s Lifestyle

By Debbie Davis, Vivian Seals, and Amy Kaderi (TNU 2006)

One-third of surveyed full-time employees are interested in a wider array of voluntary benefits.

On a Wednesday morning at 7:00 a.m., Michael, a thirty-eight year old manufacture worker, cumbersomely fills out medical forms required prior to his surgery in an out patient clinic. Michael’s employer, a major foreign-owned automotive manufacture, provides excellent health coverage that will cover the expense of his surgery except his $250 deductible. Unfortunately, his employer does not provide the needed sick leave that Michael will require to recuperate from the surgery. Michael finds himself in a catch 22 situation. His health coverage will pay his medical bills, but the rest of his bills will go unpaid. Michael will be off work 15 days without pay or use vacation time (if he has it) before qualifying for temporary disability. Many workers are experiencing similar situations in today’s work environment.

Because of the rising cost of health coverage in the last decade, some employers have cut expenses by passing along the cost of health care to its employees or by simply cutting other benefits, such as sick leave. Benefits have become, now more than ever, a recruitment tool to attract and keep the best skilled workforce on the market.

Average per-employee costs rose 7.5 % in 2004-More than inflation, which was about 3.3 % for the same year. (MetLife)

Appearing in April’s McKinsey Quarterly, a recent survey indicates 58% of corporate executives surveyed believe the main reason for benefits were to attract and retain talented workers. However, 43% surveyed admitted not knowing what their employees wanted from a benefit package. Russell Roberts, a Kellogg Graduate School Business professor explains, “once you have competitive salaries, your benefit package can be the one [thing] that makes a difference [in getting] the targeted talent that you want.” (Bridgeford)

An Explanation on Benefits

Employers are required to offer employees certain benefits. Federal and state statues mandate that these benefits are made available to all employees; Social Security/Medicare, unemployment insurance, workers’ compensation, COBRA and/or coverage under the Family Medical Leave Act (FMLA). Voluntary Benefits though are benefits the employer believes are the ones their employees want, and those that meet the objectives of the company as well. Voluntary benefits can divide into two categories, traditional voluntary, and elective voluntary. Traditional voluntary benefits include health and dental care, paid time off, and retirement savings plans, while elective voluntary benefits cover all other extras offered by the company such as auto and home insurance, dependent care assistance, banking services, etc.

“A periodic employee Benefits needs assessment is an excellent way to determine which voluntary benefits will best meet the short-and long-term needs of an organization.”  Explains Leslie A. Weatherly, contributor to HR Magazine. According to Miss Weatherly, “The top five reasons that elective voluntary benefits continue to grow in popularity, according to employees, are 1) payroll deduction is convenient (60%); 2) payroll deduction helps me be more disciplined about savings (51%); 3) no medical exams (50%); 4) more convenient than shopping on my own (43%); and 5) better rates/group rates (41%) (METLIFE 2005.)

American Benefits Council: www.americanbenefitscouncil.org

 America’s Health Insurance Plans: www.ahip.org/

“Today, administrative costs represent close to 30 cents of every health care dollar spent.” Susan J. Wells (HR Magazine)

“Time off is one of the most important items in the benefits portfolio” Shelly Wolf (Watson Wyatt Worldwide)

Non-Voluntary Benefits Required for Today’s Lifestyle

Finding the ‘right’ benefits for employees is an important part of business survival; rising premiums are causing small companies to take the responsibilities and risks of self-insurance. “Companies that turn to self insurance are likely to find that some of the reductions in their outlays for health will be impressive at the outset but unsustainable over the long term, while others will be smaller but more predictable year after year,” explains Nancy Woodward (HR Magazine).

This is so, because “There may be some short term savings that first year because of substantially reduced claims, because the old plan is still on runoff- the previous carrier is still paying on claims, from that benefits period.” Says Gary Kushner President and CEO of Kushner & Co. Therefore, companies look to alternative benefits to enhance their employees’ choices and voluntary benefits alternatives. Cost, tax breaks, availability, and feasibility of benefits offered determine the ‘kind’ of benefits a company will make available to their employees. As employees become more shrewd about their choices, new voluntary benefits become popular and employees’ demands for better and more individualized choices become the norm, companies have to think outside the box to provide useful benefits to their employees.

1. Bridgeford, Lydell C. (2006) “Benefits mangers may have to show those in corner office the light what employees values.” BenefitNews.com. Retrieved September 01, 2006.

2. Gemus, J. (2004). Voluntary benefits improve job satisfaction. Human Capital, 6, 4, 18-19.

3. Lee, K. (2005). Pricing worksite benefits right: The best price is not always the lowest when it comes to voluntary and worksite benefits. Employee Benefit News, 8, 1+.

4. MetLife. (2005). The Metlife study of employee benefit trends: Findings from the 2004 national survey of employers and employees. Retrieved November 15, 2005, from www.metlife.com.

5. Metlife. (2004). The Metlife study of employee benefit trends: Findings from the 2004 national survey of employers and employees. Retrieved November 10, 2005, from www.metlife.com.

6. Weatherly, Leslie. “Voluntary employee benefits and job satisfaction.” HR Magazine December, 2005.
   Wells, Susan. “Finding a Remedy.” HR Magazine August, 2006.

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