Employee Retention of AES Corporation -
March 28th, 2011
AES Corporation (NYSE: AES) is a Fortune 500 company that generates and distributes electrical power. It was founded on January 28, 1981, as Applied Energy Services by Roger Sant from the US Federal Energy Administration and Dennis Bakke from the Office of Management and Budget. It is headquartered in Arlington, Virginia. AES Corporation is one of the world's leading power companies, generating and distributing electric power in 31 countries and employing 27,000 people worldwide.
In 2008, AES Corporation's total revenue was 16.1 Billion, of which $9.11B came from the company's Power Generation division,and $6.99B from Utilities.
In April 2010, AES Wind Generation, a wholly owned subsidiary of AES, acquired UK-based wind developer Your Energy (YEL) and has also signed an agreement to buy a 51% stake in a wind portfolio from 3E, a Polish wind developer. This move will add more than 700MW to AES Wind Generation’s European pipeline.
Employees today want more out of a job than a big salary. Workers expectations have shifted over the past few decades. Employers need to recognize five key changes in worker's expectations, namely that they want to lead balanced lives, enjoy partnership with their employers receive opportunities for personal and professional growth be able to make a meaningful contribution to the world through their work, and experience opportunities to socialize at work. Healthcare organizations that want to attract and retain the employees that they need can achieve competitive advantage in the marketplace by responding to these new work values.
The current healthcare labor shortage has underscored the importance of attracting and retaining good employees. Although recruitment efforts often focus on clinical professionals such as pharmacists and registered nurses, employees of all kinds are becoming increasingly difficult to find and keep. Replacing an employee can cost at least 150 percent of the employee's annual salary. (a) That means it can cost an organization at least $75,000 to replace a $50,000-a-year employee. Replacement costs include hiring and recruiting costs, training costs, lost productivity during the first six months of employment, and use of temporary employees during transitions. Beyond the financial loss is the loss of knowledge and commitments associated with long-term employees. With the average age of RNs in the United States currently in the mid-40s, recruiting and retaining these employees will be crucial to healthcare organizations for many years. (b)
Over the past year, the shortage of healthcare workers has received increased attention. In fact, HHS recently launched a campaign to encourage school children to consider careers in nursing and the health professions. As baby boomers retire, they will far outnumber those in the workforce. Retired baby boomers will require more healthcare services, and healthcare organizations will need to be staffed adequately to provide those services.
The four most powerful words for engaging employees in the new work ethic are, "What do you think?" In fact, research shows that the primary reason employees leave jobs is that they believe their employers do not respect or listen to them. Organizations can adopt simple methods to increase listening. Jack Lowe, Jr., CEO of TD Industries based in Dallas, Texas, a construction company that boasts a turnover rate one-tenth of its industry's average, hosts two-hour, biweekly listening meetings. At these meetings, 15 randomly chosen employees listen to Lowe discuss what is happening in the company, followed by Lowe listening to the employees' ideas and concerns. Every year he reaches the entire 1,200-person workforce. A hospital CEO who initiated similar weekly sessions in his facility's lobby achieved similar retention results.