Companies Can’t Engage Employees that Don’t Stay

by Sharlyn Lauby on April 15, 2014

(Editor’s Note: Today’s post is sponsored by Career Engagement Group, a global consulting firm focused on creating inspiring careers for your employees. Fuel50 is their web-based SaaS solution that allows companies to deliver career engagement to every level of the business. Be sure to download their new whitepaper “Hold on tight – retention is now the issue” and enjoy the post!)

Companies have been very focused on engagement. According to the 2013 Talentkeepers Global Talent and Retention Report, 65% of all organizations budget for engagement initiatives. Don’t get me wrong, engagement is important. But employee engagement is only a piece of the workplace productivity puzzle.

whitepaper, employee, engagement, retention, development, career capital

During the Great Recession, businesses slowed their investments in talent acquisition and development. Today, business confidence is growing but the investments into talent strategy are not keeping up with the growth. When this happens, even engaged employees are attracted to new and better job opportunities.

What’s startling about employee attrition is that the majority of it occurs during the first year of employment. Anne Fulton, chief executive officer at Career Engagement Group, says their research shows that 86% of workers leave their jobs because of a lack in career development.

The bottom-line: companies cannot achieve high levels of employee engagement if their employees don’t stay. So it’s only logical that the key to employee engagement is creating an effective employee retention strategy.

Kerr Inkson, professor of management at Massey University in New Zealand, says the secret to employee retention is a concept he coined called “career capital”. It’s the idea that our careers are assets, similar to our homes and personal wealth, and we should tend to them in the same way. Our careers should be evaluated regularly, have ambitious but attainable goals, and remain in a state of constant growth.

According to Inkson, building “career capital” involves three levels of knowledge:

Why is the purpose or meaning that connects us with our career. It’s possible that our feelings about our career evolve over time as we gain more experiences.

How represents the knowledge, skills and abilities we possess. These could be technical, interpersonal, or conceptual in nature. They could also be company or industry specific.

Whom are the relationships we build with co-workers, managers, employees and customers. We often keep relationships over the course of our entire career.

It makes complete sense. We are successful in our career when we are passionate about what we do, have the skills to do our work well, and enjoy the company of the people we work with.

career, employee, engagement, retention, development, career capital

Inkson’s work is very aligned with what’s taking place in corporations today. Companies are looking for employees to take responsibility for their own careers. Additional research from Career Engagement Group shows that over 75% of people are willing to use their own time to invest in learning opportunities.

But here’s the catch – organizations must do their part to ensure that employees develop their career capital in a way that benefits both the employee and the organization. It’s in their best interest. Here are 3 reasons that organizations should help employees develop career capital.

Employee understanding of competency development holds them accountable for their career. Organizations cannot expect employees to own their careers without providing some guidance. For years, companies have told employees what to do in terms of professional development. Give employees the tools, then hold them accountable.

Employees who are responsible for their careers become more employable. We’re not talking about marketability (aka employees finding new jobs). Employability is about brining value to the business. Organizations that give their employees greater control over their careers will see value by increased retention.

Competency development and employability lead to career success. Ultimately, this translates into company success. While Inkson focuses his model on the individual, it’s clear that the better employees are at their jobs, the more it benefits the whole company.

Fuel50, employee, engagement, retention, development, career capitalThe concept of developing career capital is something business people can understand. They know how to develop the assets of their business. Similar principles can be applied to careers. The key is building a solid foundation. Just like businesses have mission, vision, and values statements; strategic and operational plans; and marketing strategies, our careers must have the same: purpose, KSAs, and a solid network.

If you’d like to learn more about developing career capital and how it impacts employee retention, be sure to download Career Engagement Group’s new whitepaper: Hold on tight – retention is now the issue. You can also subscribe to their blog.

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Many human resources professionals are also responsible for risk management in their organizations. Today’s reader is faced with one of those liability situations.

Hi Sharlyn! We’re a small, but rapidly growing company. We realize the need to have an HR department. I’m new to the HR role, have taken some seminars, and have a general idea of what needs to be done.

I’ve run into a situation and could use some help. We have a family member of an employee that tends to loiter in our warehouse unnecessarily for lengthy periods of time, occasionally with their children. No other spouses do this and we’re worried about a possible injury which we’re afraid would be the ‘fault’ of our company.

I’m hoping maybe you have some insight on how to limit access to our warehouse for non-employees and furthermore, if you know what our liability would be for a non-employee injured in our facility. Thank you in advance for any assistance you can offer!

Liability matters are very tricky. There are so many nuances, it would be impossible to give a definitive answer. But to help offer some insight, I reached out to Daniel A. Kaplan, a partner with the firm Foley & Lardner LLP. His practice focuses on safety and health related matters.

HR, family, liability, attorney, law firm, Foley Lardner, OSHA, safety, logo

Dan, let’s start by identifying some of the key issues. Because this situation involves the spouse/family of an employee, is this a human resources issue? Or because the people involved aren’t employees, is it more of a general liability issue? Maybe it’s both?

HR, family, liability, attorney, law firm, Foley Lardner, OSHA, safety, Dan Kaplan[Dan] I think it is both. It is an HR issue whenever the company is asked to engage in a matter that could affect employees. Since this involves an employee’s spouse and family, whatever is done is likely to have an ‘impact’ or possibly strike an emotion or nerve with the employee, so it is an HR issue.

However, it is also a general liability issue. Because the spouse and family are not employees, if one were to be injured it would not be covered by the worker’s compensation act applicable to employee injuries. As such, it would likely have to be covered by the company’s general liability policy, and would be concerned with general liability issues.

Obviously, the company is concerned about safety. Given what we know about this situation, is safety a state or federal matter?

[Dan] Safety is, again, both – a state and federal matter. Safety as it relates to employees typically falls under the Occupational Safety and Health Act, which is a federal law. However, many states have their own Occupation and Safety Health law which is used to take the place of the federal law pursuant to an agreement with the Occupational Safety and Health Administration (OSHA). Either way, these safety laws are for employees and not family members. But, being concerned about safety is appropriate and being concerned about non-employee safety in the company’s workplace or business is very important.

If someone did get hurt, is this a potential liability situation?

[Dan] Absolutely. If an employer was negligent in allowing non-employees in unsafe areas or conditions, if those persons were hurt, they likely may attempt to maintain an action against the employer for negligence. Most commercial general liability insurance policies are intended to cover these sort of situations as well.

Should companies have some sort of policy in place about friends or family members visiting during work hours? Is the company safe if they just restrict non-employees from potentially harmful areas?

[Dan] It is a best practice to have a policy in place that restricts non-employees from work areas and the workplace. This is especially true where the work area is not an office environment. Many companies also restrict times (such as over the lunch hour) for such visits as well, though this is obviously a less restrictive limitation that may still allow for some exposure to the company.

The company is likely safest if it restricts non-employees from the workplace or workplace areas that may have hazards or could potentially lead to injury.

Let’s say hypothetically that the company does have a policy in place AND they’ve asked the employee to deal with the family loitering situation. But it still exists. What’s a reasonable way to escalate it? I mean, no one wants to write an employee up for their family.

[Dan] This is a difficult situation. Usually a sit-down discussion with the employee and human resources to explain the reason for the rules and the concerns (family safety being paramount) is typically sufficient. If that doesn’t work, then emphasize the policy or rule that restricts non-employee access and inform the employee that it simply would not be fair to allow him / her to violate a rule that everyone else is respecting. Accordingly, he / she would have to be subject to discipline like everyone else (including the human resources) for any violation of the rule.

Where can someone go to get more information about liability matters (i.e. insurance company, OSHA, etc.)?

[Dan] Insurance agents and brokers are a very good resource for addressing and identifying policies intended to minimize risk. That includes recommendations or concerns that might arise under a general commercial liability policy.

With respect to addressing hazards and risks in relation to employee safety – OSHA is a very good source, and their on-line web page (www.osha.gov) contains a wealth of information, which is typically easily found through their search engine on the site.

My thanks to Dan for sharing his expertise. If you want to learn more, check out the Foley & Lardner blogs. I know how challenging this situation can be. I always wanted to be cool about allowing visitors but then I never wanted anyone to be put in harm’s way.

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