Canadian HR Reporter Weekly

August 22, 2018 Published weekly by Thomson Reuters Canada Ltd. CUSTOMER SERVICE Tel: (416) 609-3800 (Toronto) (800) 387-5164 (outside Toronto) Fax: (416) 298-5106 customersupport.legaltaxcanada@tr.com www.thomsonreuters.ca One Corporate Plaza 2075 Kennedy Road, Toronto, Ontario, Canada M1T 3V4 Director, Media Solutions, Canada: Karen Lorimer Publisher/Editor-in-Chief: Todd Humber todd.humber@thomsonreuters.com (416) 298-5196 Editor/Supervisor: Sarah Dobson sarah.dobson@thomsonreuters.com (416) 649-7896 News Editor: Marcel Vander Wier marcel.vanderwier@thomsonreuters.com (416) 649-7837 Sales Manager: Paul Burton paul.burton@thomsonreuters.com (416) 649-9928 Circulation Co-ordinator: Keith Fulford keith.fulford@thomsonreuters.com (416) 649-9585 Art Director: Dave Escuadro david.escuadro@thomsonreuters.com (416) 649-9358 ©2018 Thomson Reuters Canada Ltd All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, photocopying, recording or otherwise without the written permission of the publisher (Thomson Reuters, Media Solutions, Canada). Counter-offers for unhappy workers ineffective over long-term: Survey BY MELISSA CAMPEAU rowing money at a problem is rarely effective, and that's also true when it comes to employee retention. Offering more money to stop employees from leaving is only a stop-gap retention strategy — that's because employees who accept counter-offers typi- cally end up leaving the company anyway, after an average of just 1.7 years, according to a survey by HR consulting firm Robert Half. "e number of companies providing counter- offers as a measure to retain resigning talent has increased significantly over the last couple years," said Trina Casey-Myatt, metro market manager at Robert Half in Calgary. "Demand for skilled professionals is tightening, so companies are taking whatever steps they can to retain that talent," she said. "It may be an effective way to keep employees in the short-term; it cer- tainly isn't a long-term retention strategy." And if an organization does decide to go ahead with a counter-offer, it's important to consider the potential ramifications. "You need to have a backup strategy," said Casey- Myatt. "You want to make sure you're prepared for the next time they come to you and discuss their desire to leave the organization." ere's also the potential impact on other team members. "at person was obviously unhappy with some- thing, so is that impacting your other employees?" she said. "If they're being negative in the workplace then retaining them might not change that, and it might have a more negative impact than if they did depart." Even if the employee doesn't stay, having a genu- ine exit conversation can offer insights that help remaining employees. "at can be invaluable information the organi- zation can use, going forward," said Simon Parkin, president and senior manager at the Talent Com- pany in Toronto. Not all about money A person's motivation to leave an organization gen- erally runs deeper than just salary. "When an employee has made the decision to move on, it's rarely only about money," said Casey-Myatt. Sometimes it's a challenge with leadership, a lack of opportunities to grow, or a long commute and limited flexibility," said Parkin. But finding out the root cause is a negotiation advantage for an organization. "If you can address the underlying problem, then the pull of the familiar might be more appealing." And organizations can't hold on to every em- ployee — and that's a good thing, said Casey-Myatt. "ere's a large contingent of people wanting to grow within their career and have some upward mobility, and you're not always able to offer that," she said. "For someone to continue to expand their career, they may have to move on." No organization wants to keep everybody, said Parkin. "ere are great performers, average per- formers and poor performers. Sometimes the poor performer resigns and you think, 'OK, great.'" Retaining the best On the other hand, when it's the best performers who are leaving, staying in contact can be a long- term strategy. "One emerging trend we're seeing is alumni pro- grams or boomerang talent programs where if your great talent does leave, you keep in touch with them because the grass may not be greener on the other side," said Parkin. "Six months or a year from now, they may be saying they wish they hadn't left." If someone has announced his intention to leave, it might be too late to fully address the root causes of their departures, said Parkin. "You really need to focus on the employee stay interviews rather than the exit interviews." Employers should check in regularly and make sure people feel they have direction and support. "It often takes an employee about a year to learn and start excelling in the position they're in, and then in year two and three, they really hit their stride," he said. "If you're not communicating with them about what's next and where they're heading, chances are they're sitting there not knowing where they're heading." In today's competitive talent market, that's risky, said Parkin. "With all the recruitment tools out there, even if you're not an active candidate, you're probably go- ing to get sourced by a recruiter or an organization directly," he said. "ere's more opportunity out there to distract an employee and make them think, 'Hey, that sounds like an interesting opportunity.'" But having a proactive talent management plan, while a good strategy, isn't a practical solution for every employee. "A lot of organizations focus their retention plans on the executive level or mid-level managers and above because it's hard to have a plan for everyone in the organization," said Parkin. "Just have a plan — it's easier to retain your talent than try to replace them, and that's really what it comes down to." Melissa Campeau is a Toronto-based freelance writer.

• Cover