pratikkk

MP Guru
Employee Retention of American Express : American Express Company (NYSE: AXP), sometimes known as AmEx, is a diversified global financial services company headquartered in New York City. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best known for its credit card, charge card, and traveler's cheque businesses. Amex cards account for approximately 24% of the total dollar volume of credit card transactions in the US, the highest of any card issuer.[3][4]
BusinessWeek and Interbrand ranked American Express as the 22nd most valuable brand in the world, estimating the brand to be worth US$14.97 billion.[5] Fortune listed Amex as one of the top 30 Most Admired Companies in the World.[6]
The company's mascot, adopted in 1958, is a Roman gladiator[7] whose image appears on the company's travelers' cheques and charge cards.

According to a recent survey by recruiting firm Korn/Ferry, 98 percent of the corporations say succession planning is important, yet only 35 percent have a plan in place.

So why should you care? Well, I’m guessing that if global, public entities with shareholders and boards haven’t created a plan for replacing key employees, it’s even less likely that small business owners have one.

I’m not talking about a succession plan for yourself; hopefully, you’ve already taken the necessary steps to protect your business and your family in case something happens to you. But what would you do if one (or more) of your key employees suddenly quit tomorrow?

As entrepreneurs, our businesses are our “babies.” And we’re so wrapped up in achieving success that it’s hard for us to view them from an outsider’s POV. The reality is the business that means everything to you, but to your key employees, it’s just a job. You need to be prepared, especially as the economy continues to improve, to lose your key players.

Here are five ways to keep your top staff, or at least lessen the impact if they do leave.

Face the facts.
All too often we avoid thinking about what would happen if any of our core people left. But burying your head in the sand puts your entire company at risk. So sit down and make a list of your key employees, what they do, what skills they have, and why their role is so crucial. Then list some options for what you’d do if any one of them announced plans to leave.

“Bribe” them.
Try making it harder for key employees to leave by giving them a reason to stay. What motivates them? Luckily, your business is likely small enough that you know whether they covet a title, prestige, being a decision-maker or money? Tailor your offer to the person, making sure, of course, you’re not running afoul of any legal issues regarding compensation or benefits. Providing financial incentives tied to company performance, such as bonuses or profit-sharing, is a great way to help key employees feel invested in your company’s success.


The task of managing employees can be understood as a three stage process:

1. Identify the cost of employee turnover
2. Understand why employee leave
3. Implement retention strategies

Identify the cost of employee turnover:
The organizations should start with identifying the employee turnover rates within a particular time period and benchmark it with the competitor organizations. This will help in assessing the whether the employee retention rates
are healthy in the company. Secondly, the cost of employee turnover can be calculated. According to a survey, on an average, attrition costs companies 18 months’ salary for each manager or professional who leaves, and 6 months’ pay for each hourly employee who leaves. This amounts to major organizational and financial stress, considering that one out of every three employees plans to leave his or her job in the next two years.

Understand why employees leave:
Why employees leave often puzzles top management. Exit interviews are an ideal way of recording and analyzing the factors that have led employees to leave the organization. They allow an organization to understand the reasons for leaving and underlying issues. However employees never provide appropriate response to the asked questions. So an impartial person should be appointed with whom the employees feel comfortable in expressing their opinions.

Implement retention strategy:
Once the causes of attrition are found, a strategy is to be implemented so as to reduce employee turnover. The most effective strategy is to adopt a holistic approach to dealing with attrition. An effective retention strategy will seek to ensure:

Attraction and recruitment strategies enable selection of the ‘right’ candidate for each role/organization


New employees’ initial experiences of the organization are positive


Appropriate development opportunities are available to employees, and that they are kept aware of their likely career path with the organization


The organization’s reward strategy reflects the employee drivers


The leaving process is managed effectively

Retaining your employees, especially your high-performing employees, can be challenging in this fast-paced employment world. Help your organization retain seasoned employees through communicating support and appreciation with the help of these training programs and resources.
When your new employee starts the job, it takes him/her a while to adjust to new surroundings, new rules and new expectations. Begin your successful retention efforts with a proper orientation. New employee orientation efforts can help new team members feel more at home and let them know what others expect of them.
 
Last edited by a moderator:
Top