What is the difference between a retention strategy and retention techniques?

Depending on the size of the organization, the industry, and the type of employee measured, turnover averages between 10 and 20 percent annually, with some industries, notably retail, hospitality, and health care trending higher. It is the rare organization that is not concerned with retaining employees given the significant investments that are made in recruiting and training, not to mention the impact high turnover has on customer service, productivity, and employee morale.

There are two ways to look at retention: retention as a component of an overall employer-of-choice strategy, and retention techniques. Trendy retention techniques may be somewhat effective but they can require constant manipulation and updating to keep current. A longer-term approach is to implement strategies that transform the workplace to a high-retention culture, one that employees cannot easily be enticed to leave.

According to Gregory P. Smith, author of Here Today, Here Tomorrow: Transforming Your Workforce from High-Turnover to High Retention, the following attributes are essential to a high-retention organization.

Clearly defined organizational direction and purpose. People want to work for an organization that has purpose and meaning. If you align employees with your mission, you can nurture a more dedicated and productive staff.

Caring management. It's all about relationship, yet organizations consistently undervalue the importance of soft skills in retention. The quality of an employee's relationship with his or her immediate supervisor is one of the greatest predictors of employee satisfaction and, as a result, retention. Loyalty and respect are values that appear to be reciprocal.

Flexibility in scheduling and benefits. Employees demand flexibility in their jobs because their lives demand it. They will remain with an employer who guarantees that flexibility. Schedule changes, fixed shifts, time off for personal matters and other work-life and family-friendly initiatives are effective retention strategies.

Open straightforward communication. High-retention workplaces provide a constant communication loop. Don't be afraid to tell employees periodically about the advantages of employment. Benchmark competitors and communicate advantages. Explore various communication methods, such as focus groups, on-line databases, hotlines and attitude surveys. Demand that good communications be a priority for all managers, and measure your progress.

Energetic and enthusiastic work environment. Do your employees enjoy their work? If you can make the work mentally engaging and physically energizing, employees are more likely to stay.

Effective performance appraisal. Effective performance appraisal helps align individual behaviors and performance with the organization's goals. Stimulating and reinforcing behaviors that align with the company's meaning and purpose creates a sense of belonging in addition to higher productivity and more effective employees.

Rewards and recognition. Paying competitive wages is not enough, but it is a baseline around which to build a retention strategy. People need to feel valued and appreciated. What does your organization do to effectively communicate that it truly values its employees?

Training and development. Workers want the opportunity to develop their skills and enhance their company contributions. Training and development gives people greater control and ownership of their jobs and contributes to increased loyalty and retention.