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February 4,
2002 Issue
How Can I Best Recruit and Retain
Entry Level Employees?
Despite reading of
one layoff after another in the United States, and continued
talk of recession, recruitment and retention of entry-level,
hourly employees is still a concern. In many organizations,
these employees are the backbone of the services provided or
products produced.
Recruitment and retention of these employees requires a
great focus of time. Getting qualified applicants to even
apply is a challenge unto itself. The reputation of low pay
and little chance for advancement has resulted in few
applications and even less chance of retaining employees who
become fully competent in the position.
The Institute of Management & Administration (IOMA) recently
conducted a survey of Human Resource professionals
throughout the country on this issue. The survey report
focused on recruitment, hiring, retention, and overtime
issues.
The non-profit sector reported their ability to recruit and
hire entry-level hourly staff as the highest concern
(58.0%). Wholesale / retail businesses came in a close
second at 56.3%. The primary issue is a combination of the
nature of the work and the low level of pay. This has
resulted in many organizations increasing entry-level pay
well above federal and state minimum wage levels. A
billboard in Monroe, GA (between Atlanta and Athens)
declares "Wal-Mart regional distribution center to open.
Starting pay $10.50. No prior experience required."
Non-profit and retail organizations are also turning to
innovative programs to catch the eye of potential employees.
Many non-profits look to formal career path programs and the
guarantee of advanced training and education to attract
entry-level employees. One non-profit healthcare client
introduced a job enrichment program that provides an
additional $1.00 per hour to employees while they are cross
training to expand their capabilities.
Wal-Mart has taken the lead in offering innovative packages
to attract entry-level employees. In a Southeast US
community with a growing Hispanic population, the local
Wal-Mart offers a starting, no experience wage of $9.00, and
English as a Second Language and citizenship classes offered
during work hours. Not only have they been able to attract
workers to fill positions, but they have also made their
mark in the local community as an organization that gives
back. A winning combination.
The study next explored retaining entry-level hourly workers
once employed. Anyone who has been to a grocery store or
bought fast food has had personal experience with the impact
of entry-level turnover. Many organizations spend a
tremendous amount of time in training and developing staff
that stay less than two years in a job. This retention issue
can have a devastating impact on both the financial
resources and the reputation of the organization. The
financial impact of turnover has been reported to be from
one-third to one-half of an employee's annual salary. All
has felt the impact on customer service.
In the IOMA survey, retention was cited as the largest
concern by those in the banking and financial services
industry (58.4%). Human resource professionals reported they
are under increased pressure by senior management to
increase pay levels to "fix the problem." But it is not
money that drives employees to leave. More often than not,
these employees leave an organization due to lack of
advancement and lack of respect. How they are treated by the
organization in their first ninety days of employment has
more impact on their decision to stay than their rate of
pay.
The survey indicates that successful retention of these
employees must be viewed as a comprehensive campaign
comprised of many elements including
- starting rate of pay
- short-term pay advancement
- long-term career advancement
- development opportunities
- effective recognition and reward programs
- meaningful benefit choices
- the overall work environment.
All must be present, in one form or another, to ensure
employee retention. The key is to send the message early on
to these employees that
- the organization is glad they are here
- they have an important role in the organization's
success
- we want them to succeed
- our organization is worth coming back to everyday.
The third most important issue facing human resource
professionals in addressing entry-level hourly compensation
is controlling the use of overtime. The dilemma is when
there are staffing problems, supervisors demand overtime of
their staff. In the past, this level of worker would have
viewed overtime as positive and a way to enhance their
personal income.
Today, however, overtime has become less popular due to
demands many of these workers have at home. Many are single
parents who cannot work the hours requested. In many cases,
the supervisor views this lack of overtime as a performance
issue or as disloyalty, leading to increased tension in the
workplace. Human resource professionals need to work with
their supervisors when overtime issues arise to determine
the best way to meet both the needs of the organization and
the employee.
Effective recruitment and retention of entry-level hourly
employees may be found in a better understanding of not only
what the organization expects from the employee, but also of
what the employee expects from the organization. Human
resource professionals need to better understand the wants
and desires of the population we are attempting to recruit.
This may be a challenge if we are out of touch with their
realities.
One very successful organization requires its recruitment
staff to get involved in the community from which they
recruit. By doing this, they discovered a competitive edge
in attracting applicants - a large pool from which to
select. It has also enhanced the reputation of the
organization in the community and has led to favorable
support from city, county, and state officials. A win-win
for all concerned.
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Copyright 2007, Astron Solutions, LLC
ISSN Number 1549-0467
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