Retaining Employees in a Down Economy

Retaining employees in a down economy is simple but not easy. This article will show you three quick but sure-fire strategies that will help you to keep your employees happy and motivated.


Recently a business owner complained to me about the economic downturn and the effect that it was having on his business generally and his staff particularly. One key area in which a bad economy rears its ugly head is the restlessness of employees and key staff. It made me recall another story I heard about an employee who jumped ship after nearly twenty years in one place! While business owners and managers may not be able (or want!) to keep every staff member from exiting their employ, there are a few strategies that you can enact that will tip the odds of keeping them in your favor.

First, communicate. One of the biggest complaints among employees is lack of communication by their superiors to them. It is astonishing that, with all the communication tools at our disposal, we seem to be communicating less and less. Keeping open lines of communication with your key staff members is imperative. Conduct regular (but brief!) staff meetings, as well as, schedule individual meetings. Make sure you have face time with them and not just contact via email, the web or telephone. Nothing replaces sitting in front of another person to really understand what they are saying. Since communication is only 7% verbal, it’s imperative that you have regular, person to person, human interaction with them. When you ask them how they are doing, listen, really listen to them. They will know that you care and that goes a long way in building loyalty.

Don’t ever make assumptions either. Don’t assume that your employee’s know what you expect, know what you think or know how you want a specific task completed. Tell them, in precise detail what you want from them. Don’t leave anything to chance. You might be surprised how well they perform when you are clear about your desired outcomes.

The second strategy is educate. It seems that many companies are opting for distance or computer training rather than putting the employees in a room with a professional facilitator. I know that it keeps the price down but what is it costing in terms of team building and experiential learning? Companies that regularly choose webinars or teleconferences over actual training are doing a disservice to themselves and to their employees. Create an environment of learning and personal growth for your employees. Regularly scheduled trainings show that you are investing in them and that you want them to grow and develop. What happens if you invest in training them and then they leave? There’s no simple answer. However, don’t let that be the reason to stop you from investing in education for your employees. When you do, they will be better and thus so will your company for whatever time they are with you.

The third strategy while under utilized should not be underestimated. It is appreciate. When I get to this strategy in seminars there is usually one boss or manager in the audience that will sarcastically retort, “I show them I appreciate them every time I give them a paycheck!” Normally I respond by saying, “You’re right. But would you rather be right or look for a new employee?” Touché. That is music to a business persons ears since it usually costs 10X more to recruit, train and hire a new employee than it does to invest in retaining the ones you already have. That is a staggering number. So showing some appreciation to your employees is vital in a down economy.

How do you show them you appreciate them? The simplest and most cost effective way is to have an employee of the month program. Every month have a meeting where one employee who has shown improvement, gone above and beyond or had the best attitude is rewarded with a gift (minimum $50.00 value) publically in front of their coworkers. There are programs available that make this process simple and easy while allowing you to have maximum impact (see www.recognizeandreward.com). You want to “wow” the employee of the month so that he or she talks up what you gave them which in turn motivates others. You can also institute incentives for safety, sales or customer service. But make no mistake a pat on the back along with a gift in their pocket ensures motivation and helps to maintain employee loyalty.

Retaining employees in a down economy is no easy task, but if you begin to communicate, educate and appreciate the value of working with you and your company will increase exponentially!

Bob Sands