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Mansur Hasib

Retaining Great Employees: It's Not About the Money

Written by Mansur Hasib
11/2/2012 30 comments
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As IT managers and leaders, it is our job to foster the professional growth of everyone who works on our team. If we do not do this we are failing as leaders.

I have had many discussions on the topic of training with both employees and managers. Many IT managers are afraid that certifications will make their employees more marketable and allow them to find better opportunities. Employees are frustrated that their managers do not allow them to grow and so eventually they leave to find better opportunities to learn and to grow professionally.

When I was negotiating my budget as a CIO, I asked for and received $2,000 per year for every employee that could only be used for travel or training. It required the consultation of supervisors and could be used for a conference or even a certification. Since some training is more expensive, employees were allowed to trade and give someone their training dollars for one year so they could get it back from the recipient in a subsequent year. At times I was able to recruit someone simply because I had this guaranteed annual training benefit.

(Source: dailyinvention)
(Source: dailyinvention)

This arrangement was an amazing motivator for the team. It kept the skills of my staff growing and they were able to sharpen their thinking, discuss issues with peers in other institutions, and apply the knowledge toward innovation within our organization. In nearly 10 years, no one left the organization -- they were so happy with the environment, their professional growth, and the mutual support they received from each other that the thought of looking around never entered their minds.

I could never have foreseen future events, but in late 2009 and early 2010, when our organization was abolished during very tough economic conditions, every member of my team found a new job as a result of their up-to-date skills, certifications, discipline, and leadership skills.

As IT professionals, our job isn't to hold someone back. If someone's professional growth can only be achieved outside our organization, we need to be willing to facilitate that. There should be open dialogue between us and our employees and if they are planning a transition outside the organization, they should feel free to let us know without fear of retribution. That way we can plan for smooth succession so it does not hurt the organization.

Employees want to feel happy to come to work. If we spend more time making sure our employees are happy, we will get amazing amounts of productivity out of them. We will have their unwavering loyalty and they will frequently turn down higher financial rewards in order to remain in the organization where they can be happy and creative.

As for compensation -- we need to remember that there are two types of compensation at our disposal: monetary and non-monetary. We have a limited supply of monetary compensation. Monetary compensation needs to be fair, reasonable, and in line with what the organization can afford and in line with what other, similar organizations are paying. Performance evaluations need to be accurate, fair, and mutually agreed upon, and outstanding performance needs to be rewarded with better pay increases.

As for non-monetary rewards, we have an unlimited supply of those. So we need to be generous with them and we need to look for opportunities to give them away with sincerity and gratitude. A new project, ability to implement an original idea, a public recognition of a new idea, a celebratory luncheon, an opportunity to present at a conference or in front of organizational leaders -- these are all examples of non-monetary rewards that motivate people. Being stingy with "thank you" notes, commendation letters, or congratulatory handshakes does us no good. Generosity with these non-monetary rewards will unleash creativity and help with employee retention.

IT people are very creative. Creative people love it when their creativity is appreciated. The more they are appreciated, the more they will create. If you want to unleash creativity within your organization, be creative with your non-monetary rewards. I was amazed at the results I got.

Related posts:

— Mansur Hasib has served in CIO/CISO and other leadership roles in the public, private, and education sectors.

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Mansur Hasib
Thinkernetter
Saturday November 24, 2012 10:41:52 PM
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Agree Usman - I do discuss this a bit in my related post: 

http://www.internetevolution.com/author.asp?section_id=1815&doc_id=253286&

 

Usman Ejaz
IQ Crew
Saturday November 24, 2012 1:55:53 PM
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Rooting out a political environment in the office space is also very important, in order for creativity to flourish and catch on. Many a times good professionals leave a place because the environment there is not conducive for independent thinking, higher ups need to promote an environment where every employee can let thier imaginations run wild. Often in pressure situations independent thinking is what saves the day.

Mansur Hasib
Thinkernetter
Sunday November 18, 2012 8:43:26 AM
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Good point slfisher, it is very important to tailor non-monetary rewards to the individual.

slfisher
Thinkernetter
Saturday November 17, 2012 11:34:45 PM
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A few years back -- and of course, now I can't find my notes -- I attended a seminar that talked about the different ways that people get motivated, and how you had to find out what worked for people. (In this particular case, it was for volunteers, but the principle is the same.) For example, some people *loved* public recognition, being brought up in front of everyone, shaking the boss' hand, while everyone applauded. At the same time, other people would *hate* that sort of thing. But there were maybe half a dozen motivators, including public recognition, private recognition, money, that sort of thing. 

ISTR that computer geeks, for example, are more easily motivated by "interesting work" than anything else (such as the people who worked seven days a week, 14 hours a day, on President Obama's campaign). 

This is also why "merit pay" for teachers isn't going to work; people who become teachers obviously aren't motivated by money or they wouldn't take such a poorly paid profession to begin with. 

Mansur Hasib
Thinkernetter
Thursday November 8, 2012 5:45:52 PM
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@B Kraft - glad you had this experience in some companies. and found that those companies tend to do rather well over the long haul.  Yes Enterprise Social Media and gamification within the enterprise does create exceptional opportunities to enagage everyone and create a host of additional non-monetary rewards which employees can be excited about.

Mansur Hasib
Thinkernetter
Thursday November 8, 2012 5:41:53 PM
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@Nicole - some non-monetary rewards do cost some money but there are plenty that do not cost anything.  Managers and leaders need to focus on things they can control rather than lamenting over things they cannot control.

B. Krafte
IQ Crew
Thursday November 8, 2012 3:40:40 PM
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Mansur,

I've been fortunate to have spent my career working for global management teams who understood both the intrinsic and financial value of the kind of leadership you describe. I've been given me the flexibility and autonomy to innovate not only my own organizations, but cross-functionally across the enterprise. I have a number of informal case studies that demonstrate how that leadership translates into real organizational transformation. Technology plays a key role and makes the possibilities almost endless.

On the flip side, I've also worked for one or two companies where that wasn't the case. It becomes clear very quickly that model doesn't translate into a company's sustained success.

NicoleH
IQ Crew
Thursday November 8, 2012 1:19:35 PM
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So now I have to ask the question, how do you continue to retain strong performing employees when your department or team has to reduce the budget and training is the first line item that is cut?  And not only that, team lunches and holiday celebrations for example are eliminated as well. 

Companies definitely need to put more emphasis on retaining great employees.  Having a team where everyone's skill set is continuing to grow and the team has learned to work effectively as one unit brings about higher productivity (as well as higher team morale) which then allows for the team to meet the company's goals and objectives.

Mitch Wagner
Thinkernetter
Monday November 5, 2012 8:47:04 PM
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We need better metrics to distinguish the high achiever who takes necessary risks, from the plodder who achieves results by always taking the safe course. 

Mansur Hasib
Thinkernetter
Monday November 5, 2012 6:08:56 PM
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Absolutely Ariella - fear creates stress and activates the amygdala hijack condition which diminishes human productivity and brain reasoning capacity by a minimum of 20-30%. If you wish to read my friend's thesis here is the link: http://bravozuluconsulting.com/user/KZacheryThesis.pdf

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