How the Best Companies Retain Good Employees

                      By Ann Barr

It is a problem that plagues businesses everywhere.  After investing thousands of dollars recruiting, screening and interviewing candidates, why do companies lose good employees?

I talked with owners of businesses who have problems keeping good sales reps and technicians.  And I spoke with employees of successful companies that manage to keep loyal employees for years.

I was curious to learn the answer to “Why do employees stay with some companies and remain motivated year after year after year?”

What sets successful companies – companies that retain employees for long periods of time - apart from businesses that have problems keeping employees?

What I learned was very interesting. 

First I spoke with Shelley Sterling, a successful inside sales account manager for ten years with a wholesaler of imaging supplies in Canada.  What Shelley said about management in her company was repeated by long-term employees in other organizations:  “They listen.  They care about their employees.  They treat others as they would like to be treated.”

Comments from other long-time employees of successful businesses:

   l  “ They treat employees with respect and honesty.”

   l   “They listen to us and act as though our ideas and opinions matter.”

   l  “There is a family atmosphere; they care.”

I talked with Attila Galamb, who has been with Coast to Coast Computer Products in California for 17 years.  He spoke with glowing praise for the owner of Coast to Coast, an obviously earned loyalty that was evident with every long-term employee of every successful business I spoke with.  Attila said:  “From the beginning, the owner of the company wanted to help me become a better person, then I became a better salesperson.  Another thing:  our database is our database (territory); dishonesty is not tolerated.  When someone is found to be not doing the right thing, they are let go.  This fosters respect for management from other employees.”  (By the way, Attila had a record month in August:  $1 million in sales!)

And look at the employee retention statistics of Duplicator Sales & Service in Louisville, Kentucky.

   l  Duplicator Sales & Service has 171 employees.

   l  35 of the employees have been there more than 10 years and

   l  27 have been with DS&S more than 20 years.

Jerry Nash, President of DS&S credits his father, Harry Nash - who founded the company in 1959 – with the positive environment.  Jerry said his father felt that everyone was entitled to make mistakes.  “My father said:  ‘Show me someone who never makes mistakes and I’ll show you a person who doesn’t do anything.”

The Company With a Heart

The assistant accounting manager in billing said:

“I worked for a very large, international corporation for 10 years before coming to Duplicator and I can honestly say the family atmosphere means the world.  Duplicator cares about its employees and it shows in a thousand ways from the lovely Christmas dinner to truly understanding when you need to leave early for a doctor’s appointment.  The large corporate environment can only be described as sterile and the environment here is anything but and because of this, stress levels are much lower.  When you are in an environment that is as comfortable as this one is, why would you want to leave?”

Setting an Example

A service technician in the IT department wrote:

“DS&S treats employees with respect and honesty.  They take the time to hear employees’ suggestions and concerns.  To me, this sets Duplicator apart.  It has been my experience with other companies that they think only managers have good ideas.  At DS&S they let the people who do the work express how we can make the company better.  They make you feel like you are truly part of the company and not someone who just works here.  Additionally, the owners of the company will not ask you to do something they are not prepared to do themselves or have not done in the past.  How can you not like a company whose president is in the parking lot picking up trash or the vice president clears out the old junk machines?  It makes it hard for people to use the ‘that’s not my job’ excuse.”

The Importance of Perception

This brings to mind a quote from The Power of Ethical Management by Kenneth Blanchard and Norman Vincent Peale:  “The more I work with organizations, the more I am convinced that it all comes down to how people – both employees and customers – perceive the way they are treated by the organization and its management.”

From another employee of Duplicator Sales & Service:

"One of the issues I've always faced with other jobs was that those jobs seemed too much like a ob. I believe the success of a business also has a lot to do with how employees mesh.  At Duplicator Sales and Service, I have found that the people here are focused on the business (ultimately, that's why we are hired), but also appreciate and respect each other.

"At Duplicator Sales, we are not just co-workers. We truly are a team. Much of what makes a team so successful is not the talent on the roster, but chemistry among the players.

"The relaxed demeanor of our office is a reflection of Duplicator Sales' ownership. The company is a family-owned business, and the love of what they do and the friendliness with which they treat employees and customers is magnetic. The employees are dealt with fairly and honestly, which encourages loyalty on our part."

But what happens when an employee is not meeting goals, or there is another problem?

The Human Resources Manager at DS&S said:

"At other companies, when an employee was not performing up to expectations, there was a manager's meeting where we heard:  'How can we get rid of this employee?'  At Duplicator Sales & Service, the words and attitudes are different:  'How can we save this employee?'"

In other words, the answer to my original question:  Why do people stay with companies and remain motivated year after year after year?  Because employees are viewed and treated as very important and valuable assets. u

Ann Barr is a consultant and sales trainer who has written eight books on sales and marketing.  You can sign up for Ann’s free Weekly Sales Tips  e-mailed newsletter at her web site www.sellingsupplies.com