Tuesday, September 11, 2012

Retain employees with elongated promotion

In this age of internet, naukri.com and monster.com you need all the tactics you need to retain the talent. One such tactic is elongated promotion. I came across this through some HR forums online and some online reading. I guess it should work. I have not seen this personally but i think this theory should still be relevant and it should work.

Promotion
advantages: employee is happy with the recognition.
disadvantage: after few months or a year he might want to look out for a better position outside the company based on his new position, experience and tenure.

Elongated Promotion
procedure:
1) open invitation to candidates to apply for a position which isnt available or might get created. Make sure this open invitation stays for a month or more so that all the potential candidates are now have a reason to delay their job hunt outside the company for that duration of time. now shortlist the candidates.
2) Employees will be interviewed and selected for a non existing position or for a position which might get created in the future.
Make sure the interview selection process takes another month or two so that those who have applied would not try out or go out thus making them stay for another month or two.
Those who haven't applied or didn't get shortlisted will also have a positive mood and might stay during this period with the hope of getting a chance to get shortlisted for the interview for the next higher up position/promotion.
3) The selected candidate will be told to wait for some time (months or year or more) so that he will be moved to the selected position once the position becomes available.
During this period of time the employee will stay with the company since he has already got (not really) a position within the existing company. It will create a sense of positive environment around the employee making others to stay longer with the company.
4) If/Once the position is available take the candidate but as a trainee or intern; do not take him directly ! otherwise after gaining some experience in that position, based on his new role he/she might try outside for a better position and the company might lose a talent. Make the trainee remain as trainee for few weeks, months or more depending on the role and importance of the position. During this period the employee again will stay home and there might be a positive environment among his old colleagues from the old department thinking that they might be next.
5)once the training period is over confirm the position, role and the new job change but do not give the new corrective salary. In other words never promote the salary and position of an internal employee at the same time when he/she gets promoted.... Always give positive goodies/news but always give it in pieces. Try to make them feel that they are privileged to get what they are getting even though it was overdue to them. It might seem cunning and unfair but to make the best out of what we have and retain talent it is a necessary tactic.
6)Make sure all this ends when the yearly review is nearby so that you do not have to give 2 salary hikes, one for the promotion and another for the year end review & its associated hike. You can combine both the year end annual/periodic hike and the hike for the promotion into one and give a little less than the average of both the hikes combined.
Usually employees do not move out 1 or 2 months before the annual review and hike and also 4 to 5 months after the hike. Since a review and hike happens in august and then the changed salary starts after 2 months of the hike then in order for an employee to move out he needs the last payslip of the previous 3 months(to bargain for the pay package in the new company based on the pay of his old company) so that amounts to 2month (before the review and hike)+2month(changed salary will be effective after 2 months of the review and hike)+3month(need 3 month payslip for bargaining outside)=7 months. In these 7 months you can expect a low attrition in the company. In the remaining 5 months you can perform number of elongated promotions to retain the employees.
Note: These are my personal views based on my readings, experiences of my friends working in many different companies, online articles, HR forums and it has nothing to do with any one particular place of work of which i might be a part of. I like where i work and this post isnt related to that.