The Handcuff Model of Employee Retention

Daniel works in a mid-size biotech firm and is desperately frustrated with the company. His colleagues share the frustration and speak openly about their concerns. The stated vision for the company is inspiring and exciting, but the practical reality is that the company is ineffective. Products and production processes are designed around what works for the company, rather than what works for the customer. There have been some publicized success stories, but repeat business is low, and the company is struggling to become profitable. Industry perception of the company is weakening, employee suggestons are being ignored, customer concerns are being dismissed, and trust in the company's vision is dwindling.

Still, Daniel is staying. When asked why, he speaks about the good pay, the good benefits, the good dental plan. All good, except that he speaks with a tone of resentment. "If it weren't for the benefits, I'd be so out of here!"

Is this a management triumph, or a failing? The day-to-day operation of the company makes employees want to leave, but management "fixes" that with handcuffs made of money. The current approach does retain employees, but does not build a thriving company.

How much easier would it be to lead the company to profitability if the leaders changed their focus? How much easier would it be if they could learn to hear the customers' voices? If they could design their processes around their customers, rather than for the company's convenience? If they could work together with employees to improve the work, to improve the systems?

Strong, deep employee retention comes from being respected and valued, from being engaged in the work, from trusting the team, and from being allowed to truly contribute. Pay and benefits should be the financial reward for satisfying work, rather than handcuffs to keep you from running away.