| Hire the right person. | | | | programs should be continually reviewed and |
| Good executive retention planning begins with the hiring | | | | redeveloped in order to remain competitive with the |
| process. Contractors should hire the best executives | | | | marketplace. |
| that they can afford. These hires should be based on | | | | Deferred bonus payment, restricted stock. |
| skill, attitude and general "fit" within the firm"s needs | | | | Bonus pay can sometimes be the largest part of an |
| and values. Hiring based on common values and | | | | executive's compensation. Many employers will stretch |
| attitudes supports long-term retention and stronger | | | | bonus payments out over several years as a retention |
| commitment from new hires. | | | | method or golden handcuff. Discretionary bonus pay |
| Provide a formal orientation program and establish | | | | and restricted stock offerings can sometimes be |
| realistic expectations. | | | | structured so that if an executive prematurely leaves, |
| The first few weeks of employment for a newly hired | | | | the remaining bonus or vesting is subject to forfeiture. |
| executive is the most critical time to lay the | | | | Improve perks and benefits. |
| groundwork for long-term employee commitment, and | | | | Perks and benefits are often highly regarded and |
| for helping the new hire to become successful. | | | | valued by executives. Perks don't have to cost a |
| Demonstrating employer commitment to a new hire's | | | | great deal of money. The message they send to an |
| success early on fosters trust and commitment from | | | | executive can mean increased loyalty and reduced |
| the new hire. | | | | turnover. Perks (such as tuition reimbursement) can |
| Provide training, education, and development. | | | | help executives grow as professionals, and |
| The benefits of executive training and education | | | | supplement their need for career challenge. |
| usually far outweigh the costs. The more an executive | | | | Improve communication. |
| feels that he or she can develop and grow within their | | | | The number one reason for workplace conflict is |
| firm, the more likely they are to stay. | | | | typically a result of faulty communication, such as an |
| Make rewards and recognition count. | | | | unclear definition of what's required. Executives want |
| Every executive wants to feel valued, necessary and | | | | to understand what's expected of them, and to |
| important to their employer, while playing a vital role in | | | | receive honest and direct feedback. They also want |
| their employer's success. Employers should reward | | | | to be heard and to know where they stand at all |
| and recognize their executives at every opportunity. | | | | times. |
| Rewards should be immediate and personal, and | | | | Create a flexible work environment. |
| should parallel the significance of the accomplishment. | | | | Executives look for a work place that allows for |
| Even the smallest tokens of appreciation (such as gift | | | | individual expression, and meets their unique needs as |
| certificates, thank you notes and acknowledgments in | | | | individuals. By allowing executives to design and define |
| the employer newsletter) often carry tremendous | | | | their work area, and the opportunity to telecommute |
| impact with executive retention. | | | | and work from home rather than the office at times, |
| Build trustworthy and loyal relationships with staff. | | | | employers will usually have a more productive and |
| Construction employers should not only teach their | | | | satisfied executive. |
| executives how to be good leaders and managers, | | | | Consider employment contracts. |
| but also how to build loyal and trustworthy relationships | | | | Employment contracts are often used to cement |
| with their direct reports. Most relationships can be | | | | verbal agreements concerning an executive's pay and |
| dramatically improved by simply improving | | | | responsibilities, but they are also effective tools at |
| communication, being a better listener, and becoming | | | | forging executive partnerships and alliances with the |
| more available. | | | | employer to reduce turnover. Although an employment |
| Promote a company culture of participation. | | | | contract is unlikely to keep an executive who wants to |
| Construction firms should establish a corporate culture | | | | leave, it can significantly inhibit the departure process, |
| that promotes employee participation and | | | | deflect recruiters, and diminish the pondering of outside |
| empowerment. Whenever possible, executives should | | | | career opportunities during the contract term. |
| be invited to help solve employer problems. This | | | | Employment contracts can also cause recruiters and |
| shared approach creates deep ownership in the firm's | | | | prospective employers to hesitate or withdraw their |
| success, and communicates that the employer trusts | | | | pursuit of an executive if they believe that there might |
| and values the executive's opinion. | | | | be litigation associated with a hire. |
| Offer equity and ownership. | | | | Conduct retention surveys with direct reports. |
| The most loyal employee is one with ownership in the | | | | Fortunately it is relatively easy to get the facts behind |
| firm. A strong employee stock plan often cuts | | | | most turnovers. The best and simplest solution to |
| employee turnover up to one half. Stock ownership is | | | | developing a retention strategy is to have managers |
| a good way to encourage executives to focus on the | | | | regularly ask their direct reports why they stay and |
| firm's success -not just their own. It offers an | | | | what would cause them to leave. Even conducting an |
| alternative for compensating high achievers when | | | | anonymous employee survey can predict when and |
| cash is not available, and provides an effective "golden | | | | why certain employees may be thinking about leaving |
| handcuff." | | | | the firm. |
| Create career challenges and promote from within. | | | | Make executive retention a strategic priority, and |
| Executives often leave their employers in order to | | | | follow through. |
| pursue greater and more meaningful career challenges. | | | | To make executive retention effective, it must begin |
| Employers should customize each executive's career | | | | with a commitment from the highest levels of |
| path based on the executive's ability, desires, and input. | | | | leadership, and include all management personnel. It |
| Employers should also have a policy of promoting | | | | must also become a strategic priority for the firm, and |
| from within to reward loyalty and long- term | | | | include specific practices and accountability. Executive |
| commitment to the firm. | | | | retention programs typically involve conducting a |
| Pay market wages or better. | | | | turnover cost analysis, researching why key people |
| Once executives reach an acceptable income level, | | | | are leaving and have left, monitoring why new hires |
| money moves down the list of priorities. However, | | | | have joined and remain, evaluating results, preparing a |
| compensation consistently weighs heavily when it | | | | report with specific recommendations for change, and |
| comes to keeping executives. Compensation | | | | turning recommendations into actions and policy. |