Supply Excellence — It’s Bonus Time – Will Your Employees Feel Valued?

It’s Bonus Time – Will Your Employees Feel Valued?

December 4th, 2007 · by Tim Minahan · No Comments · best practices, skills rectruitment and development, supply management

As companies put the final touches on their FY08 budgets, it appears that procurement professionals have some good news. According to the CPO Summit audience, their company’s procurement department headcount in the next 12 months will:

37% increase

22% decrease

42% stay the same

The average U.S. voluntary turnover rate is 23.4% annually (according to the U.S. Department of Labor, Bureau of Labor Statistics). That means more than half of procurement organizations will have job openings next year. In terms of the cost to the company, the most expensive part of this equation is employee turnover. We all know how the benefits of working for a “good” boss – and we all know that these people are also hard to find.

So, when you have a team of procurement professionals that have established a streamlined process and are producing cost saving for your company – how do you keep them energized with a single digit bonus/raise structure? Susan Heathfield, a management and organization development consultant who specializes in human resource systems, issues, and opportunities, provides some ideas, outside of salary increases:

A satisfied employee knows clearly what is expected from him every day at work. Changing expectations keeps people on edge and creates unhealthy stress.
The quality of the supervision an employee receives is critical to employee retention. People leave managers and supervisors more often than they leave companies or jobs.
The ability of the employee to speak his or her mind freely within the organization is another key factor in employee retention.
Talent and skill utilization is another environmental factor your key employees seek in your workplace.
The perception of fairness and equitable treatment is important in employee retention.
The employee must have the tools, time and training necessary to do their job well – or they will move to an employer who provides them.
The employee needs to feel that senior managers know he exists.
No matter the circumstances, never, never, ever threaten an employee’s job or income.
Your staff members must feel rewarded, recognized and appreciated.
Seek frequent opportunities to learn and grow in employees’ careers, knowledge and skill.

If your company follows these steps and shows a genuine concern for the well being of your employees, you may not have to pay the highest wages in town to have the lowest employee turnover rate.

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