A small tech company tried it all to stop employee turnover. Only one thing worked

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Free beer on tap, dogs allowed at desks and unlimited paid time off were not enough to stop the turnover at a small IT services firm in Massachusetts. The CEO says only one thing worked: embracing the turnover instead of fighting it.

Most companies don't like to admit they have any turnover. For years I didn't, either. We have always been an employee-focused company that has done everything in our power to hold on to our employees, building what I thought was a great culture. Beer on tap, dogs in the office, unlimited paid time off and, ultimately, an employee stock ownership plan, where I gave 40% of the company to the employees. It felt like this effort was wasted if people left.

We were so concerned about how employees viewed their colleagues' departures that we held a town hall with our employees about the situation in order to hear their thoughts and ideas. The most obvious fix — raising salaries so high no one would ever want to leave — was not possible. We were competing with giant firms that could afford to pay much more, and the market would never support us raising our rates as an outsourced supplier that high.

This message resonated. The acceptance rate for our job offers has held steady at 98% to 99% since 2016, when we introduced the ESOP. Surveys show it is the most important benefit we offer to employees — even as unemployment dipped and the talent war heated up. Prior to the introduction of the ESOP, our acceptance rate was 90%.

On these surveys, we pay a lot of attention to what motivates satisfaction. We have noticed a very strong correlation between transparency with employees about why decisions are being made and their likelihood of saying positive things about the company.

 

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Posting everyone’s salary for everyone to see is the most obvious first step. Something that managers of course, will never do ...

In other words, all those words come down to ESOP: Employee Stock Ownership Programme? In short, the employees had a buy-in. A vested interest in the company and in the company's success? Who'da thunk it? Congratulations. Most sincerely, Slim.

Funniest article of the day. TLDR! a. Everyone wants to be VP, esp. the under 30 crowd when CNBC heavily cheers Zuck, Luckey, etc b. Startups love cheap labor, they are not leaving due to career, it’s all about cash. Suck up pay the rate. c. Teams, all the scrum can’t fix teams.

A ping pong table?

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