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Module-5: Retention of Human Resources

Retention through Compensation

Its impossible to consider your organizations retention strategies without also

looking at your compensation package. Every compensation plan should beconstructed to help the firm achieve its strategic goals and to attract, reward and

retain the right people. If the plan does not accomplish these two objectives, it

should be restructured. Keep in mind the following when implementing a payfor

performance system!

". Establish fundamentals, like who will administer the plan, eligibility

re#uirements, tracking result, ect.

$. %se satisfiers &which attract and retain' and motivators &which drive people to

improve performance'.

(. )et owners, employees or both, involved in the design.

*. +alance rewards for results and effort.

. Identify measures define targets and track performance.

-. reate high trust between owners and employees. /ow trust can kill a

compensation plan.

0. 1void side or oneoff agreements to prevent different classes of citizens in

your firm.

2. 3ecommit and reengage everyone in the first year. If there are problems withthe initial design, e4plore them and make the necessary modifications.

5. +udget for bonuses. 1 modest budget for bonuses is advisable. If all owners

and staff in a firm achieve their goals, the financial results should be there to

support more significant bonuses.

"6.ommunicate. +e sure to allocate sufficient time to e4plain the program,

answer #uestions and allow individuals to see the differences between the

current and past plans.

Retaining Top Talent

7anagers and staff often have different ideas about why employees choose to stay

with a company. In the $66- 889 :op :alent 9urvey, partners and staff

responded with their :op lists!

Why Top Talent Stays

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". 3espect for company mission statement

$. areer growth opportunities

(. 9alary

*. ;pendoor