Leaders LettersA Leadership Resource Edition 4. September 2007

Work Environment and Employee RetentionExcerpts from Skillsoft, course: Retention, Topic: Work Environment :SkillSoft Corporation, Copyright 2002

What makes a company a desirable place

to work? For many employees, a

company's work environment

determines whether it's a desirable employer. A

work environment is comprised of the

atmosphere in which employees work and the

attitude a company has toward its employees.

A positive work environment is one of the most

important reasons employees stay with a

company. If the environment is poor, it's likely

people won't want to be there. You can create a

positive work environment by following the

suggestions provided below.

Demonstrate a genuine concern for

employees, their families, and their

communities. The first way to create a positive

work environment is to show employees genuine

concern for them, their families, and their

community. No matter what the size of your

company is, you can show employees that they're

important and valued.

What can your company do specifically to show it

cares? It can donate money to community

charities, help with employees' needs for child

care and elder care, send flowers when a new

child is born to an employee or when there is a

death in an employee's family.

Working for a company that cares often makes

employees feel connected to and proud of their

company. Employees may feel there's honor in

working for a company that respects people as

well as the demands of business.

Support a commitment to a work/life

balance. Another way to create a positive work

environment is to support a commitment to a

work/life balance.

Supporting a work/life balance means embracing

the new realities of the workplace. For example,

your may want to ensure that your company sets

reasonable deadlines to make sure your

employees work an average of 40 hours a week.

Then when employees do have to work more to

meet a deadline, it's not such a big deal.

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Also, be generous with vacation time, holidays, and thenumber of personal days your employees get. In return,you'll get a dedicated and motivated work force. When acompany recognizes and accommodates its workers' needsto balance work and life demands, employees are moreloyal and less likely to leave.

.

Provide an appealing physical environment. Thethird way to create a positive work environment is toprovide an appealing physical environment. There are 120hours in a five-day workweek. If you account for eighthours of sleep each night, that leaves 80 waking hours.That means that employees spend half of their wakinghours at work. And many of today's employees work farmore than that. Pleasant surroundings raise the quality ofthe work experience.

A pleasant environment can be achieved by encouragingemployees to "make themselves at home" in their ownareas by displaying personal items. The physicalenvironment is also enhanced with windows, good

lighting, plants, works of art, and alternatives to cubicles.

Try using low cubicle walls so employees can see oneanother, and provide common areas in which employeescan visit with one another or take a break. Mostconversations begin as social exchanges but often returnto work-related topics. When that happens, valuable ideasemerge. If not, employees get a needed break.

Also, try to keep your work environment informal,creative, and fun. If possible, opt for a relaxed dress codeand provide comfortable meeting rooms. You want youremployees to enjoy coming to work.

Think about the companies in which you've worked. Doesone stand out in your mind as the all-time best place towork? If so, what made that company better than theothers? Chances are you liked being there because of apositive work environment. Remember, having a positivework environment is an important factor in retainingemployees.

Developing a Retention Strategy Reprinted from SkillGuide - Developing a Retention Strategy

G Money: Offer adequate salaries, stockoptions, and cash incentives.

G Benefits: Have a generous benefits plan andflexible corporate attitude

G Recognition: Acknowledge employees withpublic recognition accompanied by privatethank yous and rewards

G Communication: Establish an atmosphereof freely shared information, supportinformation transfer, and encourageemployee-management communication.

G Career Development: Give employeeslearning options, provide ways for them toget training, apply what they learn to jobs inyour company, and reward developmentachievements.

G Work Environment: Have a genuineconcern for employees, their families, andtheir communities; support a commitment toa work/life balance; and have an appealingphysical environment.

Leaders Letters are producedby the Human ResourceTeam of the Corporate andFinance Division and

distributed to members of the Senior LeadersGroup. For more information contact 894 0304.