There's a belief in many organizations that you need only find the right employee, and the rest will take care of itself. In fact, nothing could be further from the truth, or more perilous to an employer. Finding key employees is an expense that most companies factor into their budgets, either with aggressive recruiting strategies involving finders fees or through more subtle attraction programs. Either way, the cost to find a skilled employee today can be very high. However, the real struggle is to keep these employees, and it is fast becoming a major issue in today's workplace.

In the practice of building employee loyalty, or retention, as we'll later refer to it, the onus is increasingly on management to play the active role in keeping the best and the brightest. Once hired, keeping the most valuable employees motivated and dedicated may be one of the most important things a manager can do.

Today's employee has an unprecedented variety of choices about where they work. Increasingly we've found that the market is thinner and thinner for quality candidates, making for longer search times. And though most organizations dedicate resources to recruiting, few dedicate resources to retention. The fact of the matter is, sometimes it's not so much who you hire that counts, as who you can keep.

There are also a number of conventional methods you can employ to build employee loyalty. These include more conventional approaches, and we'll offer some suggestions that may be more current, as well.

Conventional methods of building employee loyalty:

  Fair and equitable salary parameters.

Salary parameters should be constructed with a view to current market prices. Ensure that employees performing the same job functions are compensated within acceptable parameters of variance. Employees do talk, and pay inequities are a leading cause of employee resignations. Don't make the common mistake of under compensating employees who have been brought up through the ranks - they are often your greatest resources.

  Commit to the growth of the employee.

No employer/employee relationship will ever get off the ground without a sincere commitment on the part of management to listen to and deliver on the personal goals and objectives of their best performers. Many employees can be motivated with courses and personal development training, the establishment of progress benchmarks, increased responsibilities and titles.

  Rewards for a job well done.

Money is sometimes viewed as the be-all, end-all, and there's no denying that it's a powerful incentive. But it's not everything. Our view is that sometimes money as sole motivator can actually work against an employer. We find that money alone doesn't usually keep someone happy over the long term, because of course, one always needs more. Rewards for a job well done may be more powerful and appreciated in the form of creative incentives, paid time-of and public acknowledgements. It may be difficult at first to strike a balance between cash incentives and authentic creative incentives, but an informal analysis of the employee's own goals may help in designing a suitable program. There are also many books available on the subject of rewards and incentives.

Unconventional methods

(What are you prepared to do?):

  That extra little bit. What are you prepared to pay?

That said, fair and equitable compensation is a right, not a reward. Once you've identified your nucleus, do you really want to risk them being lured away for the sake of five or ten thousand dollars? Think about what it will cost you overall in lost productivity and hours spent replacing that key person if they should leave suddenly. Would it be more advantageous for your company to pay them slightly above market price to deter defections ( which may actually save money in the long term)? Consider offering top performers company shares or bonuses based on performance.

  Human Resources. What are you prepared to invest?

Today's Human Resources Manager is in an unenviable position. The war for talent causes most of their energies to be devoted to the recruitment and replacement of employees, leaving little if any time for Employee Retention and Loyalty. Consider hiring (or promoting) an Employee Loyalty coordinator, whose sole responsibility it will be to engage meaningful workplace dialogue, conduct exit interviews, survey the marketplace and to devise methods of incenting employee loyalty specific to your organization.

  Recognition. What are you prepared to say and do?

If you've never really considered verbal or written recognition, even a sincere "thank you", as a bona fide incentive, it may be something to seriously consider. Those two words together are probably the most powerful and under-used sentiment in today's workplace. People we've spoken to seem to regard thanklessness as even more cruel than excessive over-time, difficult assignments tough clients or internal power struggles. It can definitely make a difference. Consider public and private methods for recognition depending on the achievements.

  Are you prepared to understand why employees leave?

Overachievers are driven by different motivators than most other employees. After several years with a company, overachievers may yearn for a change of scenery, new challenges, and the chance to prove themselves (and be recognized all over again). Devise ways to give these top performers "a change of scenery at home", or new challenges which acknowledge their desire for change and intellectual stimulation. Specific projects or group supervisory functions can help to fill this void, and maximize the potential of your staff. Consider conducting informal exit interviews with parting staff, as they can provide invaluable insights into why they're leaving - and what you can do to prevent others from doing the same.

  Life outside work. How far are you prepared to go?

By acknowledging life outside of work as important, you're also acknowledging that the employee is more than just an employee to you, and is first and foremost a person. This kinder, gentler approach to management yields a wealth of possibilities for employee loyalty. After a series of grueling weeks or difficult deadlines, offer a valued employee a long weekend on the company, or a couple of days off to recharge. Consider offering someone with a family a day family pass to an entertainment park. Even dinners and theatre tickets as rewards are greater than they appear, for they acknowledge the sacrifices being made by the family of the employee during particularly busy times.

  Bad management examples. What are you prepared to do about it?

Consistently bad examples within the management ranks can cause high performers to get discouraged and leave. Research suggests that taking action to deal with poor performers is one of the most difficult and most under-utilized retention devices available to companies today.

Most importantly, show your best and brightest that you are committed to their present and future happiness within your organization. Leave your door open, so to speak. Give and keep a verbal promise by telling your employees that they can always come to you before first making any hasty decisions - because ultimately, you're interested in what's best for them too. This open-door policy is a powerful tool when employees are given outside offers to 'greener' pastures. If your employees know you're open for discussion, there's little chance for hidden discussions and agendas where the potential to lose a valuable team player to a competitor is high.

The new workplace paradigm is a two-way street. By changing the way employees view employees, we also change the way employees view employers. In the "war for talent" every little bit counts.