"Our people are our greatest asset!"

How many of our organizations have something similar to this statement either buried within their mission statement or stated somewhere in some obscure corporate document? How many of us would say the day-to-day business practices support this claim?

The reality is that most organizations would agree with this statement. On some level they realize that it is the people who do the work - the quality of the employees they hire and maintain determines the quality of output. But often, with time, unless we are constantly evaluating and recalibrating, many organizations would be dismayed - or at least surprised - to learn that their employees don't see it that way ... how can we tell?

The biggest red flag should be our rate of employee retention. Face it, it's not 1999. The workplace has changed - employees have more options than ever before and employers need to become more competitive in attracting and keeping talent. More is required of us as managers and leaders - we need to focus on people skills, relationship building - all those so-called soft skills.

How critical is retention?

• 76% of all employees are looking for a job on some level, ranging from casually surfing the net to actively interviewing and being recruited.
• Less than 44% of all employees feel their organizations are actively trying to retain them.
• Only 24% of employees report they feel "truly loyal" to their employers and plan to stay at least 2 years.
• When asked if their companies viewed employees as "an asset to be developed or a cost to be reduced", more than half responded "a cost to be reduced".

Are we actually pushing our employees out the door, rather than having them wooed away by tantalizing attractions? Data suggests employees don't leave a job for salary increases as much as we may think - the seed that leads to leaving usually is planted in the soil of dissatisfaction - factors such as poor job / talent fit, a shortage of appreciation and recognition and a disconnect between individual accomplishments and the organization's strategy. Why should we care about declining job satisfaction? Because happy employees are effective employees - they are more productive, more efficient. They spend less time on gossip, complaining and job hunting on your dime.

Arthur Andersen used to assess company profitability in the typical manner: assets, liabilities, revenues and expenses. Now they speak of a new value framework with four facets of financial, physical, customer, and employee assets. Just as managers, in the past, regularly maintained tangible assets such as machinery and equipment, in the new management reality they have to maintain employee assets. Ken Blanchard has a term he calls The Triple Bottom Line. Rather than focusing on profits alone, companies should measure the bottom line in relation to how well they are doing at being the Provider of Choice, the Employer of Choice and the Investment of Choice. Focusing on one over the other doesn't give an accurate view of the viability and success of the organization.

New Competencies for a New Workplace

Enlightened organizations know that good people skills will determine an organization's success. Hands-on, relational leadership will be the key differentiator, as the changing demographics of the workforce require a new style of management. The single greatest reason for leaving cited on employee exit surveys is a poor relationship with their immediate manager or supervisor. Improving our behavioral competencies will enable us to compete in the war for talent, giving us a competitive edge by retaining talent and thus enhancing knowledge and productivity.

So what are these new workplace competencies? Let's consider two:

Managers need to be relationship builders - take the time to understand what motivates them. When we consider today's diverse workplace in terms of age demographics alone, the need for a deeper awareness of those we lead is evident. Consider your organization's rewards mechanisms - what motivates a baby-boomer may not be as attractive to the GenX'er. A recent statistic from the Bureau of Labor Statistics about "young boomers" - those born at the tail end of the baby boom held an average of 10.2 jobs between age 18 and 38, from 1978 to 2002. These are JOBS, not companies. Not only are we switching companies, we are looking for new careers, more interesting opportunities. Our younger workers' drive to do meaningful work and to maintain a work-life balance is influencing older workers.

Managers need to become better team-builders. Poorly managed workgroups, where morale is low, are the key reason for low productivity and profitability. Managers spend a disproportionate amount of time putting out fires, leading to projects that are completed late, of poor quality, and 44% less profitable. Building better teams comes back to that relationship thing - putting the right people together, getting them rallied around a common goal, then maintaining a culture that encourages creativity and productivity.

How many women are in your workgroup? Men? What races or nationalities are represented? What are the ages of your team members? How many are married? Have children? Have elders they care for? What is the education level of your team? How long have they worked for your company? Now look at your organization's culture and policies - are you doing all you could to ensure retention in the coming years? Could your management style use a little "flexing" to meet the needs of a diverse workplace?

One-size-fits all management is a thing of the past. Organizations that are able to clearly see how relationships, culture and communication have a direct impact on employee retention, productivity and financial performance will prove among the most successful in the coming years.

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