Q. Is money a main factor in retention?
A. Studies continue to show that money is often a less important factor in retention while management practices are one of the most important. In addition to management practices and compensation, other factors impacting retention include the organization’s culture and leadership style, work environment, hiring practices, orientation/onboarding process, and employee development and training opportunities. All of these factors should be considered in developing an effective retention strategy. When looking at compensation as a possible factor, the total rewards package needs to should be considered including base pay, variable pay, benefits, work/life balance, performance and recognition, and development and career opportunities. Another key element is addressing how well the organization’s compensation philosophy is communicated to employees.