Can money and freebies retain employees?

Companies often use compensation and benefits as dangling carrots to attract, retain and push employees to perform. However, is this really sufficient to stimulate minds, drive innovation and produce exceptional results?

Vipul Singh, VP and head HR, ADP India explains,”There are many employers in the market who are willing to lure candidates with great compensation and benefits. But, for the highly individualistic society of today, this strategy without the space for individuality and creative thinking is a rustic one.”

“Hence, with cut-throat competition across industries, there is a very high attrition rate when it comes to employee retention. Because of the wide basket of choices and offerings from companies, employees have no second thoughts about changing their jobs as long as they get a better ‘deal’ from the other party,” elaborates Debasis Chatterji, CEO, Netxcell Limited.

Compensation and benefits are not enough to retain employees

As a result, although compensation and benefits could be among the prime motivating factors, they are not enough and certainly not the only factors that keep an employee happy and satisfied.

Although your employee might quite enjoy taking that leave with pay you’ve offered, his/her performance might not automatically improve just because he/she is better rested if the environment in the office is not suitable. It is also extremely important that employees feel respected and that their work is valued.

“Of course, it is not possible to promote everyone and offer substantial increase in salary. However, it is important that your employees feel like they are moving up and you should be able to offer some sort of gratification. Hence, creating a hierarchy plays an important role. For instance, a promotion would apply that a developer has moved on to becoming a techie and perhaps in the future, a manager. Since such a transition takes time, changing the prefixed title from junior to senior can make a lot of difference,” says Ravi Prasad Dasari, senior manager HR, Cegedim Software India Pvt Ltd.

Monotony of work can be a demotivating factor

Also, it is important to give employees enough scope for growth. If a person feels he/she is stuck and not moving forward, no amount of money or freebies can retain him/her.

“Monotony of work can be a demotivating factor too. Hence, employees should be given the opportunities to try new roles and dip their fingers into different aspects of the company.Training does not necessarily have to be related specifically to his/her task only. Employees must be given an overall understanding of the functioning of the organisation,” says Dasari.

This offers employees great opportunity while nurturing them into broad-minded individuals who can be offered greater tasks as time passes. As Kavita Rao, head HR, Unisys India explains,”It is very important to give employees a clear visibility of their growth options across various streams, competencies required for every growth role and learning activities needed to acquire the necessary competencies, thus letting them be masters of their own fate.”

Hence, it is vital not only to fill the pockets of your employees, but also stimulate their minds, nurture their talent and create an environment they would hate to leave.

By : The Economic Times


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