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How You Can Reduce Attrition At Your Company

By February 16, 2016March 6th, 2023Blog, Technology News

how_you_can_reduce_attrit_117236_216386As the economy continues to improve, and labor gets tighter, wages start to rise. It’s inevitable, and that reality sends shock waves of fear through the small business community. After all, they can’t hope to compete with the big players in their industries, and let’s face it, the lure of a significantly bigger paycheck can be all but irresistible. How then, do smaller companies compete, if they want to keep their best talent?

Small and medium-sized companies are cauldrons of innovation. They have to be in order to survive. Of course, big businesses co-opt the best ideas generated in the ever-churning small business laboratory, but the fact remains that much of the innovation we see in this country comes directly from small to medium sized businesses, and that includes non-monetary compensation strategies.

One of the very best methods you can use to keep your people is autonomy. It’s actually amazing, the disconnect between what we know about motivation, and how we apply it in the real world. You’ve probably heard, and perhaps even structured your entire business around the idea that more pay = better performance.

Actually, that isn’t true at all.

In fact, the only time it is true is for purely mechanical tasks. Assembly line tasks. In that specific case, better compensation delivers superior performance, but the moment that a task requires even rudimentary cognitive skills, it either has no impact at all, or in many cases, actually decreases performance.

The key is to pay enough to take money off the table. A salary good enough to live on. After that, you make up the difference by giving your people autonomy. Control over their schedules and their work day. In its most extreme form, some companies don’t have any rules for their employees at all, including no set schedule and optional meeting attendance. The only requirement is that the work get done and be completed on time. How that happens is left entirely to the employees themselves.

Obviously you don’t have to go to that extreme, but the bottom line is, the more autonomy you give your employees, the better they’ll perform for you, and the more likely they’ll be to stay, even if offered a higher salary. That’s heartening news.

Jason Manteiga

Jason J. Manteiga, Vice President of Olmec Systems, has been part of the company for over the past 20 years. He believes that having a great work environment and supportive team, is the ultimate key to success. Since being in the IT realm for over 25 years, Jason, along with Olmec Systems, has been on the Inc. 5000 “List of America’s Fastest Growing Private Companies” and Channel Futures MSP 501 “Top Managed Service Providers in North America,” along with other awards and nominations. Jason earned his Bachelor Degree in Information Systems from the New Jersey Institute of Technology. He also holds certifications in Microsoft MCSE, VMWare VCP, and Cisco CCNA. In his spare time, Jason is a contributor for The Center for Social & Legal Research (Privacy Exchange) and a member of the Morris County Chamber of Commerce. His hobbies include cycling and kayaking. He currently lives in New Jersey with his wife, two daughters and son.