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1. Give space and freedom
The people who join an entrepreneur in his/her organization are looking to have more of a free hand as opposed to the corporate world, where employees are bound and conditioned by rigid policies and frameworks. It’s important for you, as a manager, to give your employees the space and freedom to experiment with new ideas (regarding strategies, Research & Development and marketing maneuvers), if they show the desire to do so. A fresh perspective will be good for your business and keep employees satisfied.

2. Cross-functional exposure
Roles at large organizations are cut and dry. But a startup can be flexible. Engage closely with your employees, understand their career aspirations and leverage on it. Informal channels like parties, outings and team retreats are good ways to converse freely. Don’t box his/her role in the company, instead try and create new roles around an employee’s aspirations. Of course, this has to be a two-way street. Thrusting a new role may be counter-productive so, if faced with resistance, don’t push it. Instead, set tighter goals to give yourself a better idea of his/her capabilities.

For example, the HR head of a certain startup was very good at business planning. His employer was quick to notice this and got in a second person at a lower rung to take care of the operations bit and gave the employee the additional responsibility of business development. Today he is happy and still with the company.

Moral of the story: If you give employees opportunities to gain exposure with new role combinations, it’s very likely he/she will be a long term player in your company.

3. An opportunity to create the company
A startup is still in the process of building a brand recall value for itself and every day is a step in progress. The business (product or service) continuously evolves and there is ample scope to create new markets, segments, distribution channels and policies everyday. The delta is clearly very high!

Here is where you need to involve employees, at least the key contributors, in the overall strategy of your company. Make these people part of your driving team to give them a sense of ownership of the company. Let them create and build with you.

4. Flexible working environment
Flexibility of time, working hours and leave is a practice a lot of young companies are adopting to help employees balance work and life. While large corporations don’t like to disrupt the existing culture, as a startup you can offer it at the drop of a hat! The number of hours a person clocks in is not always an indicator of his/her productivity. Your primary concern as an employer should be to plug into talent available and monetize it. Say someone wants to work only a fixed number of days each month, offer the option if you feel he/she is talent worth retaining.

Many a time people quit full-time jobs due to personal reasons which can include aging parents, small children and other such factors. The ownership of work is important and if it requires the flexibility of employees working from home, or even part-time, don’t deny it. A good mix of some amount of working virtual and sitting in office is ideal for the sake of team building in your startup.

5. Reinforce positively
Encourage, don’t discourage; reinforce, don’t rubbish your employees. Threats and warnings don’t work well, so try and avoid doing either to an employee as a measure to improve productivity or performance. While you or other heads within your startup responsible for operations have set targets for growth of the business, it’s important to be clear on an employee’s contribution in this regard.

Instead of losing your cool, make sure your team members are positively motivated to be aligned with the company’s larger goal. Treat them with respect like your contemporaries. Think before you say anything that will make them look for another job.

6. Impeccable supervision
The best in an organization can be found at any level, any department and if you have handed over some duties elsewhere, you’ve got to ensure there’s a high quality of supervision being imparted. Middle managers are seen as the ambassadors of an organization with a duty to communicate real objectives.

It’s often said that employees leave their managers and not the company. These heads overseeing teams are required to have domain knowledge first, and then soft skills like leadership, be goal-oriented, and should be seen as fair and transparent. Your middle manager should be respected by his/her team. Can your supervisor handle a team and keep them motivated? Here’s where you as an entrepreneur need to come in. Invest in your manager’s training if required.

7. Promise a package
Money is just what many call the ‘hygiene factor’ and definitely not the sole motivator for those ready to join a startup. So don’t try and buy anyone out. Instead, you need to match an employee’s personal career goal with your company’s vision. Create and show your employees a path you’ve laid out for them and be clear on expectations. Be honest and frank while talking about the larger picture. Chalk out a career plan and highlight the areas your employee will stand to gain in terms of newer skill sets, increased market value and a richer experience.

Let your employees know that you will invest in his/her training, increasing their knowledge and their learning curve. Show them that pot of gold at the end of next three-four years. The whole package here is crucial to retaining the best.

8. Entice with incentives
Provide for incentives other than the basic salary. It could be stock options, bonuses linked to exits, investors coming in, IPO and/or performance based perks.

9. Democratic culture
Of the employee, by the employee and for the employee! Even as CEO/Founder of your startup, you’ve got to know what your employee feels and needs. Does your startup allow for free speech? Can an employee give feedback without feeling hesitant or fearful of being misjudged? Strive to create an atmosphere where suggestions/ideas can be taken positively. Else people will only stick till the money is good.

10. Close connect with top management
As a CEO/Founder of your organization, it is important for you to know your employees individually by name and face. Be sure you know the role and function of each employee too. As opposed to big organizations where the lower rung of people gets lost, a startup can offer a unique environment where everyone can freely approach the top boss!

Employers often mistake money as the only form of recognition. Sadly, that’s only one part of the battle to retain people. Recognizing efforts and rewarding a job well done in a timely manner can emanate a lot of positive energy to your employees. A person who feels appreciated will be happier and more productive and ready to show his/her loyalty. Do let your employee know the purpose behind it and communicate the positive impact he/she had on the company in that particular situation. Just walking up to an employee and recognizing his efforts face-to-face can create a huge impact and lead to retaining the best.

©Entrepreneur July 2010

Tags:
employees, HR, retain