9.7: Retaining Valuable Employees

What makes a company a great place to work? Ask yourself, what would you want as an employee? Flexible hours, high pay, prestige, recognition, autonomy, empowerment, interesting projects, friendly colleagues, fun events, medical benefits, or something else? We each have our own intrinsic and extrinsic motivators when it comes to work. Managers need to find ways to motivate employees to perform at a high level. This may mean motivating different employees in different ways. Many organizations offer several perks or benefits to employees in an attempt to satisfy the needs and wants of many different employees. Companies would much rather make their employees happy and retain them than have a continuous rotation of hiring new employees; it costs more to hire new employees than it does to keep existing employees. Happy employees are also shown to provide better customer service and take more interest in doing quality work. Employers strive to provide employees with a work-life balance, challenging and interesting work, and rewards that will motivate employees.

Every year, Great Place to Work® compiles a list of the best places to work in Canada. Some of the companies on the 2024 list of best workplaces include Cisco, SAP, Deloitte, ATB Financial, KPMG, TD Canada Trust, FedEx Express Canada, RBC, and Sun Life.^[1]

Job Redesign

The average employee spends more than two thousand hours a year at work. If the job is tedious, unpleasant, or otherwise unfulfilling, the employee probably won’t be motivated to perform at a very high level. Many companies practice a policy of job redesign to make jobs more interesting and challenging. Common strategies include job rotation, job enlargement, and job enrichment.

Job Rotation

Specialization promotes efficiency because workers get very good at doing particular tasks. The drawback is the tedium of repeating the same task day in and day out. The practice of job rotation allows employees to rotate from one job to another on a systematic basis, often but not necessarily cycling back to their original tasks. A computer maker, for example, might rotate a technician into the sales department to increase the employee’s awareness of customer needs and to give the employee a broader understanding of the company’s goals and operations. A hotel might rotate an accounting clerk to the check-in desk for a few hours each day to add variety to the daily workload. Through job rotation, employees develop new skills and gain experience that increases their value to the company. The benefit of this practice is that many companies have established rotational training programs that include scheduled rotations during the first 2–3 years of employment. Companies benefit because cross-trained employees can fill in for absentees, thus providing greater flexibility in scheduling, offering fresh ideas on work practices, and becoming promotion-ready more quickly.

Job Enlargement

Instead of a job in which you performed just one or two tasks, wouldn’t you prefer a job that gave you many different tasks? In theory, you’d be less bored and more highly motivated if you had a chance at job enlargement—the policy of enhancing a job by adding tasks at similar skill levels. The job of sales clerk, for example, might be expanded to include gift-wrapping and packaging items for shipment. The additional duties would add variety without entailing higher skill levels.

Job Enrichment

Merely expanding a job by adding similar tasks won’t necessarily “enrich” it by making it more challenging and rewarding. Job enrichment is the practice of adding tasks that increase both responsibility and opportunity for growth. It provides the kinds of benefits that, according to Maslow and Herzberg, contribute to job satisfaction: stimulating work, sense of personal achievement, self-esteem, recognition, and a chance to reach one’s potential.

Consider, for example, the evolving role of support staff in the contemporary office. Today, employees who used to be called “secretaries” assume many duties that were previously in the domain of management, such as project coordination and public relations. Information technology has enriched their jobs because they can now apply such skills as word processing, desktop publishing, creating spreadsheets, and managing databases. That’s why we now use terms such as administrative assistant instead of secretary.^[2]

Giving employees the freedom to make decisions within their roles and empowering them to take ownership of their work fosters a sense of trust and responsibility. This autonomy leads to greater job satisfaction and motivation to stay with the organization.

Work-Life Balance

Work-life balance generally refers to a balance between your personal and work life. The goal is to strive to keep that balance so that we are managing stress and burnout by fulfilling other areas of our lives that aren’t swallowed up by work.

Building a career requires a substantial commitment of time and energy, and most people find that they aren’t left with much time for non-work activities. Fortunately, many organizations recognize the need to help employees strike a balance between their work and their home or personal lives. By helping employees combine satisfying careers and fulfilling personal lives, companies tend to end up with a happier, less stressed, and more productive workforce. The financial benefits include lower absenteeism, turnover, and healthcare costs.^[3]

Flexible Work Arrangements

One way companies help employees maintain a work-life balance is by offering flexible work arrangements, such as remote work options, flexible hours, and compressed workweeks, allowing employees to adjust their schedules based on personal needs and preferences. This flexibility helps employees manage their time more effectively, balancing work with family, hobbies, and other responsibilities.

The accounting firm KPMG LLP is committed to helping “employees balance work and their personal lives through a variety of flexible work options” and has consistently made the list of Canada’s Top Family-Friendly Employers.^[4]

Remote Work

Remote work, also known as telecommuting, means that you regularly work from home (or from some other non-work location). You’re connected to the office by computer and cell phone. You save on commuting time, enjoy more flexible work hours, and have more opportunities to spend time with your family.

While roughly 40% of Canadian jobs can be done from home, telework capacity varies substantially across industries. For example, about 85% of workers in finance and insurance can work remotely, compared to only 4% of those in the agricultural fields. One challenge for employers seeking to implement telework is to accommodate the diversity of employee preferences. Around 90% of Canadians feel as productive or more productive when working from home. Approximately 41% of remote workers would prefer to work half their weekly hours remotely.^[5]

Telecommuting isn’t for everyone. Working at home means that you have to discipline yourself to avoid distractions, such as TV, personal phone calls, and home chores and also not be impacted by feeling isolated from the social interaction in the workplace.

Flextime

Employers who provide for flextime set guidelines that allow employees to designate starting and quitting times. Guidelines, for example, might specify that all employees must work eight hours a day (with an hour for lunch) and that four of those hours must be between 10 a.m. and 3 p.m. Thus, you could come in at 7 a.m. and leave at 4 p.m., while coworkers arrive at 10 a.m. and leave at 7 p.m. With permission, you could even choose to work from 8 a.m. to 2 p.m., take two hours for lunch, and then work from 4 p.m. to 6 p.m.

Compressed Workweeks

With compressed workweeks, rather than work eight hours a day for five days a week, you might elect to earn a three-day weekend by working ten hours a day for four days a week.

Job Sharing

Under job sharing, two people share one full-time position, splitting the salary and benefits of the position as each handles half the job. Often, they arrange their schedules to include at least an hour of shared time during which they can communicate about the job.

Personal Time

Additionally, generous paid time off policies, including vacation days, parental leave, and personal time, give employees the opportunity to recharge and attend to personal matters without financial stress. Employers also support work-life balance by promoting wellness programs, providing access to mental health resources, and fostering a work environment that encourages employees to take breaks and disconnect from work outside of business hours. Employee Assistance Programs (EAPs) provide confidential support for personal issues, ranging from stress management to financial and legal advice.

Caring for Self

Both KPMG LLP and BASF Canada provide employees with generous vacation allowances and personal days for employees to use in any way they want, in addition to offering employees comprehensive health and dental benefit coverage programs. Both organizations also offer an Employee Assistance Program for employees experiencing personal and/or work-related problems that may negatively affect their job performance and overall well-being. If staying fit makes you happier and more productive, BASF Canada offers a $400 fitness club subsidy, and KPMG LLP offers the equivalent of 1.25% of an employee’s salary for home gym equipment.^[6]

Parental Leave and Support

Beyond the standard maternity and paternity leave, many companies offer extended paid parental leave for both primary and secondary caregivers. This provides employees with time to care for their new child without the financial strain of taking unpaid leave. New parents in Canada are guaranteed paid leave via Employment Insurance Maternity and Parental Benefits. BASF Canada tops up these payments for new parents to 100% of salary for up to 17 weeks. KPMG LLP further supports new parents by providing those on leave with support in their transition back to work.

Concierge and On-Site Services

Some companies offer concierge services to help employees with personal tasks such as scheduling appointments, making travel arrangements, or even organizing home services. This service allows employees to delegate time-consuming tasks, freeing up personal time for other activities.

Some employers provide on-site amenities like childcare services, dry-cleaning, fitness centres, or even grocery delivery services. These perks save employees time that would otherwise be spent outside of work, allowing them to focus on their job and personal life.

Family-Friendly Programs

Moreover, many companies offer benefits that assist employees in managing family responsibilities, such as on-site childcare, family leave policies, or subsidies for childcare services.

In addition to alternative work arrangements, many employers, including KPMG LLP and BASF Canada, offer programs and benefits designed to help employees meet family and home obligations while maintaining busy careers. As exemplar companies, they offer the following benefits.^[7]

Dependent Care

Caring for dependents—young children and elderly parents—is of utmost importance to some employees, but combining dependent-care responsibilities with a busy job can be particularly difficult.

Some employers provide on-site childcare, which allows employees to pop in at lunch to see their child. This also reduces time spent commuting to and from daycare and offers peace of mind knowing their child is nearby. Many employers provide access to backup or emergency childcare services for employees who experience last-minute disruptions in their regular care arrangements. This can include a network of approved childcare providers or services that offer temporary care when needed. Employers may offer financial assistance to help employees cover the cost of childcare. This could include subsidies, vouchers, or a reimbursement program that partially or fully offsets childcare expenses.

Flexible schedules, remote work, or compressed workweeks are often offered to employees with dependent care responsibilities. These arrangements allow employees to manage their work and caregiving duties more effectively by adjusting hours or working from home.

Employers are increasingly offering support for employees who care for aging parents or other elderly dependents. This can include access to elder care resources, counselling, and even subsidies for caregiving services.

The Personal Care program at KPMG LLP provides employees with up to 50 hours of paid time off annually to help with a range of personal matters. They also offer emergency backup dependent care all year round, either at a provider’s facility or in the employee’s home. KPMG LLP also has a Working Parents Network and a Special Parents Network, offering support for parents raising children with physical, emotional, and behavioural issues. Meanwhile, BASF Canada offers its employees a privately run on-site childcare facility.

Positive Work Culture

A company’s work culture is the shared set of values, beliefs and attitudes that guide an organization, and is reflected in the way customers and employees are treated. Companies create a positive work culture by fostering an environment where employees feel valued, respected, and motivated. This is achieved through clear communication of organizational values, promoting openness and transparency, and recognizing employee achievements. Emphasizing diversity, equity, and inclusion, as well as supporting work-life balance and providing opportunities for professional growth, also contributes to a positive atmosphere. Supportive leadership, team collaboration, and a healthy work environment further strengthen this culture, leading to increased employee satisfaction, engagement, and long-term success for the organization.

Regularly recognizing and appreciating employees’ hard work, contributions, and achievements boosts morale and motivation. This can be done through verbal praise, awards, or other forms of recognition, fostering a positive workplace culture where employees feel valued.

A positive workplace culture that encourages open communication, sets clear expectations about work hours, and discourages an “always on” mentality also plays a critical role in maintaining work-life balance. By promoting a healthy, supportive work environment, companies can help employees achieve a better balance between their professional and personal lives, leading to greater job satisfaction, productivity, and overall well-being.

Workplace culture impacts the types of candidates a firm attracts for open positions, and having a strong work culture also boosts productivity, decreases turnover and improves employee engagement. Work culture can have a profound impact on several significant aspects of the employee experience, like individual and team morale, workplace engagement and job satisfaction. For example, experiencing happiness in the workplace could raise employees’ productivity by 12 percent.^[8]

Elements of Work Culture Employees Care About

Research from the MIT Sloan School of Management and CultureX based on Glassdoor data identified some common elements of work culture that employees care most about the most:^[9]

• Feeling respected
• Having supportive leadership
• The alignment between leaders’ actions and the company’s core values
• Benefits
• Perks and amenities
• Opportunities for learning and professional development
• Job security

People generally experience workplace culture most strongly through their employers’ approach to performance, recognition and celebrations and company mission and values. These foundational elements of work culture involve making sure employees feel their individual contributions are valued and their voices are being heard.

Toxic Work Culture

Researchers have pinpointed six key signs that a work culture is toxic:^[10]

• Treating employees and colleagues with disrespect.
• A lack of diversity or a failure to include and promote people from all backgrounds.
• Unethical behaviour, dishonesty and false promises.
• A dog-eat-dog or cutthroat environment where employees constantly undermine or one-up each other.
• A hostile environment.
• Job insecurity and the absence of any kind of employee recognition activity

Media Attributions

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