Human resources: 7 tips for hanging on to your top talent
Economic recovery usually represents a positive: Manufacturers step up production, companies see their profits rise, and more people start landing jobs. But for human resource professionals, that can be a double-edged sword.
“The one thing that’s keeping chief HR officers awake at night is trying to retain key employees as the economy improves,” says Dow Scott, PhD, human resources professor at Loyola’s Quinlan School of Business. “This is particularly true of industries that don’t recover as quickly. The ones that come out of the recession the quickest can grab up all the talent.”
This challenge prompted Scott, along with Tom McMullen and Mark Royal of the Hay Group management-consulting firm, to examine how some organizations retain their top talent—an effort that greatly impacts the bottom line.
“It generally costs organizations 200 percent of an employee’s base salary to find a suitable replacement,” Scott says. “But for high-talent individuals, the costs are almost impossible to calculate because disruption in those jobs can have a tremendous impact on the organization.”
To determine best practices, what causes top talent to quit, and incentives for keeping the best and brightest on board, Scott and his team surveyed 600 reward professionals, WorldatWork Association members, and Hay Group registered website users.
Based on theses responses, the team came up with the following list of recommendations for companies looking to hang on to high-performing players:
- Develop clarity around what defines “key employees” and identify the specific employees you consider top talent.
- Have a plan for developing and managing key employees.
- Ensure that the organization’s reward system is relevant, differentiated, and fair.
- Have development and succession planning processes in place for each key employee.
- Keep key employees apprised of their development and advancement opportunities.
- Monitor voluntary turnover among key employees to understand why they leave.
- Put counteroffer policies in place and identify those individuals or positions where counteroffers will be made.
The team presented these findings at a Nov. 1 conference at Loyola’s Water Tower Campus. The work will be published soon in WorldatWork Journal.
Hometown: Grew up in and around the Nez Perce National Forest in Idaho
Professor at Quinlan since: 1996
Courses taught: Compensation, Incentive Pay and Employee Benefits, Human Resource Development, and Human Resource Management
More Featured Stories
RecognitionHundreds of faculty members turned out Sunday at the Mundelein Center Auditorium for the 2014 Faculty Convocation to celebrate the official opening of the school year.
Go GlobalAre you ready to explore the world and expand your horizons? Then come to Loyola’s annual Study Abroad Fair on Thursday to learn how you can turn your global dreams into a reality.
Adult LearnersStarting in 2015, Loyola will offer several FASTRACK degree programs for adult learners at its Cuneo Mansion & Gardens in Vernon Hills. Courses will be on alternating Saturdays with an online component—perfect for anyone looking to balance work, life, and school.
On CampusLoyola’s Polish studies program is celebrating the legacy of Jan Karski, a Polish humanitarian and hero of WWII, by hosting an international conference on genocide and responsibility on September 18-21.
Health SciencesThe Stritch School of Medicine welcomed more than 200 alumni and guests back to campus for the 2014 Stritch Reunion Weekend, where it also recognized five outstanding alumni.
What’s next?In today’s economy, recent college graduates face fierce competition for jobs. These three members of the Class of 2014, however, were able to stand out from the crowd and find full-time jobs.
Helping othersFour Loyola graduate students were recently selected for the prestigious Albert Schweitzer Fellowship program and will spend the next year working on healthcare-related projects to help underserved communities in Chicago.
On CampusFounded in 1914, Loyola’s School of Social Work is the oldest of its kind in Chicago and the first to turn 100 years old. To mark the milestone, the school is kicking off its centennial celebration Friday, September 19, on the East Quad of Loyola’s Lake Shore Campus.
VideosThe service of faith and the promotion of justice is the mission of the Society of Jesus. Our 2014 Founders’ Dinner awards recipients are among the best and brightest examples of living out these Jesuit ideals.
QuinlanWhen Quinlan professors deliver, they deliver—and Michael Hewitt knows how to do that better than just about anyone else. Hewitt, an assistant professor of supply chain management at Quinlan, is leading new research to help companies decrease shipping times in order to increase profits.
SustainabilityLoyola is ranked No. 4 on the Sierra Club’s 2014 list of the greenest colleges in America. The annual rankings are designed to spotlight universities that are deeply committed to environmental responsibility.
AcademicsLoyola is one of just 283 universities to have a Phi Beta Kappa chapter, a claim that only about 10 percent of the nation’s colleges can make.
In the newsLoyola’s Information Commons joins an elite group of peers on Business Insider’s list of the “coolest” college libraries in the country.
ExploreThe Institute of Environmental Sustainability combines academics and research with agriculture and community living—all in one facility.
Damen CenterThe Damen Center was designed from top to bottom with students in mind, making it the center of social life on Loyola’s Lake Shore Campus.