How can California employers create an environment that attracts and retains talent?

There’s no magic bullet, but every workplace can improve its standing.

By David Ernstam

Although the economy ebbs and flows, there’s never been an era when employers had all the qualified workers they could handle. Even in the best of times, California companies never want to lose a great employee.

“Not only is it disruptive and time consuming to lose a worker, it’s expensive. According to the Society for Human Resource Management, it costs six-to-nine months of an employee’s salary to find a replacement.”

As of this writing, businesses’ recruitment and retention challenges are severe. What can they do to find and keep staff? Wouldn’t it be nice if there was a scientific formula for this problem? Yet there is no formula because human resources are fluid and ever-changing.

In addition, each region of California and each culture and subculture respond to different incentives. Workers in Marin County, in general, have different preferences than employees in Imperial County. Employees in different industries also express diverse ideals. A software developer at Apple may want to bring her dog to work. A Central Valley agriculture worker may not be the least interested in caring for his pet all day long.

While we can’t write a foolproof prescription for successful recruitment and retention, we do have some ideas that – combined with your experience – can make a difference.

#1 Listen
There are few people in our lives whom we feel listen to us with attentiveness, sincerity and empathy. It’s even rarer when that person is your employer. No workplace will ever be Nirvana. Yet, when people feel heard, they’re willing to put up with problems and challenges. Often employers are not in a position to grant the requests of employees. That doesn’t mean they can’t empathize. This is especially true during the pandemic, in which many have experienced unparalleled levels of anxiety and depression.

In addition, listening gives us strategic insight into the workplace. We already know what we know. But we don’t know what everyone else knows. Even if I believe my workplace is as good as it can be, maybe I’ve missed something. Inviting people to share their perceptions, without fear of reprisal, can lead to ideas that improve your workplace’s recruitment and retention.

#2 Recognize employee excellence
Sometimes employers get jaded when discussing employee recognition. A plaque? A parking space? Yes, those can seem gimmicky. It’s acts of genuine recognition that matter. There’s no need to force recognition and make it monthly. Instead, give personal and public recognition to employees when they excel. Be specific. If there is a way to reward them with a personalized gift of value, that’s even better (i.e. not pens, mugs or plaques).

#3 Offer training opportunities
Sometimes employers resist spending money on training because they fear workers will take the training and leave. But think of it this way: What if they don’t take the training and stay? If we want our workforce to grow, education is a fundamental way to nurture this goal. Employers can provide training as an incentive. This is a company-funded opportunity to improve their skill set with no strings attached. It doesn’t (usually) have to be a heavy-handed mandate. Some workers view access to employer-funded education as a benefit on par with compensation.

#4 Flexibility
This is not a new idea. But research has shown that younger workers place a high value on flexibility over punching a clock. If the work can be done at the coffee shop, and the work is getting done, then why leash someone to a desk? Sometimes flexibility of location and hours are offered in the abstract, but frowned upon in reality. Offer flexibility when you can. And make sure you really mean it.

#5 Value mental health
Employee Benefits News reports 90% of employers are spending more on their employees’ mental health benefits. This certainly makes sense with the life-and-death struggle the world has experienced recently. When your world is crashing down, it’s a valuable benefit to have someone you can talk to without wondering how you’re going to come up with $150 an hour for the visit. Employers have also begun offering related benefits such as fitness memberships/discounts and telemedicine.

I’ve offered no secret sauce here, because it doesn’t exist. But if you’re an employer who values, recognizes and invests in people, word will get out. If we can be of assistance in discussing the benefits component of the equation, please let us know.

David Ernstam is the founder and co-owner of Ernstam & Lewis Insurance Services.