Once upon a time, people joined an organisation and remained in it for their entire career. In what was known as the ‘psychological contract’, organisations looked after employees’ training and development and their career progression and in return, they were rewarded with loyal service.
That model pretty much died a long time ago. An exception is US multinational GE Energy, which has offices in Australia and New Zealand. They’re serious about retaining staff, particularly engineers and technicians, and not just in the short term, either. They want their staff to stay with them for their entire careers because, as Sharon Daley, head of human resources (who has been with the company for 30 years herself), says:
‘When someone walks out the door, you’re losing intellectual property and human capital, as well as institutional experience and corporate knowledge. And that’s hard to replace …’
GE Energy is also keen to retain older workers, too, who they believe can be important mentors and teachers.
Part of GE Energy’s retention success lies in the fact that they recognise that people go through different periods in their lives; sometimes they need to work part time, have flexible hours and/or job-share, for instance. Accommodating individual needs, combined with a great employee value proposition and ongoing learning and career development fosters employee loyalty. Employees are so loyal, in fact, that GE Energy’s retention rate is a remarkable 95%.
You can find out more about GE Energy here. Source: ‘People power’ by Sue O’Reilly, the deal, The Australian Newspaper, July 2012.
How do you foster employee loyalty in your work team? Do you think it’s worth every organisation’s time and energy to try to retain employees? When good employees are hard to find, how important is the psychological contract and long-term employment? What do you do to accommodate employees in different phases of their lives? How easy do you make it for team members to come to you to discuss ways tp make their working lives easier and balance their work and home lives?