How to retain your best employees

The rules of employee retention have changed. No longer can loyalty be bought with big salaries, hefty bonuses, and rich benefits packages. Today it takes intangible, non-monetary rewards to create an atmosphere that makes your people feel valued, respected and involved. It takes a whole new way of thinking. This is the tenth edition of a 22-week special on ideas you could implement to keep those best employees:

10) Ditch Your Employee-of-the-Month Program
 Or, if you're thinking about starting an Employee-of-the-Month award, think again. This type of program is a prime example of a well-intentioned idea that could backfire on you. Honoring an exceptional employee each month is certainly one way to recognize your staff, but the drawbacks outweigh the benefits:

• While one employee will be thrilled to win each month, you'll have to contend with dozens-or hundreds- of disappointed "losers."
• It's exclusionary. Is there really only one employee deserving of your praise each month?
• The rewards are often inadequate. Prizes like a plaque have little perceived value in the eyes of the winner, and worse, something like a preferred parking spot may actually alienate the honoree from the rest of the company.
• No matter how fair your judging process is, you'll be hard-pressed to avoid charges of favoritism from deserving candidates who don't win.
• You may actually dampen motivation. Employees who have already won know there's little chance of a repeat, so where's their incentive?

Employee recognition belongs on your daily planner, not your monthly calender. A far better alternative is to give spontaneous, immediate praise wherever and whenever it's deserved. This is a warmer, more personal way to relate to your staff. Think of it as your new Employee-of-the-Month program! I think it will be much more effective!