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Posts tagged ‘retention’

The Influence of Payroll Errors on Retention

No one wants to be paid less than they deserve, but just how impactful are payroll errors to employee morale and retention?  A recent study done by the Workforce Institute at Kronos on American workers reveals how just one payroll error can change an employees perception of their workplace.

According to the research, “nearly half of American workers (49 percent) will seek new employment after just two payroll mistakes, such as being paid late or incorrectly.”  A staggering 24% will look for new employment after the first offense and another 25% said they will do this after the second mistake.  This demonstrates just how seriously employees take their paycheck.  It doesn’t matter if you are struggling to make ends meet or saving money for retirement, your paycheck is a reward for your hard work.

Another interesting fact divulged by the study is “Baby Boomers are most forgiving of payroll errors.”  We know there are differences among the generations when it comes to compensation, see Compensation Among the Generations, but there is also a variation in tolerance for a blunder of their pay.  “Nearly half (44 percent) of American employees aged 55 and older say they would stay at their job as long as they are eventually paid correctly. That’s in stark contrast to their colleagues aged 18-29 (13 percent,) 30-39 (17 percent,) and 40-54 (27 percent,) who are much less willing to stay even if they’re eventually paid correctly.”

As states and localities continue to refine their recruitment and retention strategies, these are important facts to consider.  It might not be how much you get paid, but rather how accurately you get paid.  For more stats, read Payroll Problems May Undermine Employee Experience, Finds Workforce Institute at Kronos Survey.

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The Year of Retention

Retention seems to be a popular word this year.  HR leaders across all levels of government are in a state of worry.  Attract and retain…  Attract and retain…  This is the mantra by which public sector employers are living and breathing.  So what’s all the fuss about?

As more employees are reaching retirement age, they know a plethora of knowledge will be walking out the door with each employee.  So governments are deep in succession planning and strategizing to address this.  But it’s also made many acutely aware that they need to figure out ways to retain this new generation of employees who are filling in these gaps.  With pensions in the condition they are and pay often lower than the private sector, what’s the draw to make them want to stay?

Regardless of the generation, people still believe in making a difference.  Whether it’s for their community or to make a difference in peoples lives, public service tends to draw people in.  But it doesn’t necessarily make them want to stay.  Employees want to be recognized for a job well done and offered opportunities to advance their careers.  They want to be part of decision making and know their voice is being heard.

According to an article written by Neil Reichenburg of IPMA-HR, Getting the Right People, employee engagement matters. “Engaged employees are five times more likely to be very satisfied, five times more likely to recommend their place of employment to others, and four times less likely to leave.

Engagement is not a one-size fits all; we are all individuals.  What motivates one person, might not motivate the next.  As managers and leaders address the reality of what retention means to their organization, they will discover there are multiple paths to create an environment employees can thrive in. And maybe, the employees who came into the public sector for the right reasons will want to stay a little while longer.