Restless employees pose retention issue

February 27, 2011 at 12:00a.m.

McClatchy Newspapers

SACRAMENTO, Calif.

The economy still has a long climb to reach recovery in 2011, but some employers already are considering how to retain the talent they have even as they struggle with layoffs or cautiously look to add new staff.

Recruiters say that will become even more important as the economy improves.

“Retention will be huge, and companies maybe are not paying attention to that because they’re so focused on the bottom line,” said Amelya Stevenson, president of the Sacramento Human Resource Association.

“People have been extremely thankful that they’ve had a job, but now that things are blowing over, employers need to tell their employees — out loud — that they are thankful for their service,” said Kim Parker, executive vice president of the California Employers Association.

Employees are reading the news and seeing their employers’ improving fortunes, said market researcher Rick Reed. They’ve survived the downturn with its budget cuts, wage freezes and layoffs and want to be rewarded for their perseverance.

“Exports are up in California, and the U.S. banks are making record profits. Stocks are above 12,000. Employees are asking, ‘When does that reach the street?’” said Reed.

Employers are starting to hear the message. Average hourly earnings rose by 8 cents in January or $3.20 over a 40-hour workweek, according to the federal Bureau of Labor Statistics, while wages have risen by nearly 2 percent over the past year.

Parker, of the California Employers Association, said she’s hearing from employers who are lifting wage freezes, restoring 401(k) retirement matching funds and resurrecting training programs.

In an encouraging sign, Parker said her office is getting more requests for salary surveys as employers try to gauge what wages competitors are paying.

Still, in a volatile job market, employees may be looking for new opportunities, particularly in the information technology sector.

“Turnover is likely going to increase in 2011. Tech workers are looking for more at this point,” said Tom Silver, a Dice.com senior vice president. About 40 percent of workers surveyed by Dice.com believe they can make more money if they switch companies in 2011.

“People figure they can make more money if they change employers,” he said.

Siemens Mobility employs 750 workers at its south Sacramento plant and late last year landed a lucrative Amtrak contract that will add 200 more workers over the next two years.

But parent company Siemens AG didn’t wait to acknowledge its current employees, doling out a nearly $100 million “special payment” in December to its U.S. workers “for their extraordinary performance in a difficult time,” said Siemens AG president and CEO Peter Loscher.

Retention perks take many forms, and they often go beyond money.

At the small Sacramento insurance firm Rood & Dax, employees can take a quiet moment in a meditation room, can order chair massages and are rewarded for volunteering in their communities. Employees’ ideas are put into action on everything from projects and work improvements to the company’s wellness program.

“We give employees ownership in the organization. They come up with ideas on how to improve,” said Laurie Rood, who, with broker-consultant Gayle Dax-Conroy, heads the company. “There’s nothing worse for an employee than to have a good idea and not have it acknowledged.”

In the massive University of California-Davis Health System, officials know that health care is “a healthy industry for jobs,” said chief patient-care-services officer Carol Robinson. “There will always be a demand for health professionals, and that will only increase.”

Because the sector is so dynamic, employee recognition, tracking staff satisfaction, and training and development programs play a large role in UC-Davis’ retention efforts, she said. Supervisors hand out on-the-spot awards such as gift cards for good work with patients and clients.

Career-development programs let employees train and work with a mentor in different departments for specified times.

“It gives you the possibility to move around — take classes and learn new skills,” said Carolyn Cords, a registered nurse in UC-Davis Medical Center’s Trauma Nursing Unit.