In the book The 7 Hidden Reasons Employees Leave by Leigh Branham published by the American Management Association, NY, 2012, Mr. Branham outlines the reasons why people leave. based on what over 20,000 people who were asked by their companies said. In terms of management, by having better management or good management which translate into low w turnover, no matter the industry and sector, the company saves money. If it has a high turnover, it wastes both money and people

Reason # 5   Feeling Devalued and Unrecognized

Everyone wants to feel important. So how do so many organizations manage to make so many people feel so unimportant? There are many variables to this answer, part of the answer is: our economy is a service economy and everyone thought we would be paid more and have more leisure time. The reality is something different. Wages have decreased or stagnated; expectations of a long career at one place are reduced and there are many opportunities and challenges in the workplace and people are willing to do more for a less for a limited time frame.

Possible solutions

Offer competitive base pay linked to value creation

Reward results with variable pay aligned with business goals

Reward employees at a high enough level to motivate higher performance

Use cash payouts for on-the-spot recognition

Involve employees, and encourage 2 way communications with designing new pay systems

Monitor the pay system to ensure fairness, efficiency, consistency and accuracy

Create a culture of informal recognition founded on sincere appreciation

Make new hires feel welcome and important

Ask for employee input, then listen and respond

Keep employees in the loop

Give employees the right tools and resources

Keep the physical environment fit to work in

Linking to dividend paying stocks, as long as the company is profitable and can pay a dividend, all the pay issues are the company’s concern, except for the top executives salary which are released in the management report or the annual report. There is no one solution, however if during the coaching sessions, the manager can tailor to the employee, assuming the base pay is reasonable.

There are more questions than answers, till the next time – to raising questions.