4 Useful Tips for Employee Retention in the Automotive Industry
In the automotive industry, attracting and retaining employees can prove to be a highly challenging task, especially when competitors are doing all they can to lure the best talent in the market. Once players in the automotive industry hire an employee, undertake training and development, give customer contacts, and provide access to trade secret and […]READ MORE >>
In the automotive industry, attracting and retaining employees can prove to be a highly challenging task, especially when competitors are doing all they can to lure the best talent in the market. Once players in the automotive industry hire an employee, undertake training and development, give customer contacts, and provide access to trade secret and other confidential information, it is discouraging, to say the least, when the employee then uses all of that for the benefit of a competitor. Notably, in a sector like the automotive industry, trade secrets can give companies a competitive advantage to attract and retain business. Hence, it is critical to implement certain strategies to reduce employee turnover, protect intellectual property, and improve your companies’ economic performance. While it may not always prove effective to prevent an employee from working for a competitor, you can take specific proactive measures to encourage loyalty and employee retention and minimize the risks of unfair competition. Here are four useful tips for companies in the automotive industry to improve their employee retention program:
Adopt economic incentives
Sometimes it takes financial incentives to encourage employees to remain employed with the company. We have listed out some of the economic incentives that may be worth considering. Firstly, consider awarding performance bonuses that are dependent on continued employment throughout a specified time frame. If the employee leaves the company before that fixed time, they would not be eligible for the bonus. Secondly, use a “payback” or reimbursement agreement for company-paid benefits like college tuition reimbursement or moving expenses. In case the employee quits before a designated date, he or she would be subject to pay back the amount that the company advanced for those benefits. Thirdly, deferred compensation arrangements and stock option plans is an excellent way for employee retention. They may also be structured so that employees contribute money to a plan over time or are awarded stock options, with amounts vesting over time.
Effective retention of employees begins with effective recruitment. Companies in the automotive industry must look at prospective hires very carefully to determine whether the candidate is the best choice or not. They should also examine factors like – whether the candidate has moved around with prior employers, whether this person shares your company’s values, vision, and goals, and is committed to helping to develop business and provide quality services or goods for customers. It can be determined from effective candidate interviewing and screening as to whether the individual shares the same commitment to the business that you have.
Contracts to maximize employee retention
While almost all states have laws that prevent employee theft of confidential information, it is critical for players in the automotive industry to have a strong compliance and confidentiality agreements for your most essential salespeople, engineers, and executives. Non-compete agreements (where permitted by state law) prevents employees from working for competitors for specific time periods. Confidentiality agreements help companies ensure that employees do not divulge confidential information and company’s trade secrets that are not available to the general public. You must make sure that confidentiality policies are followed and that proprietary information is well-guarded.
Promote employee engagement
Employee retention is more likely to be high for businesses that respect employee contributions, pay them fairly, acknowledge and appreciate their work, and welcome them as part of a team. Employees who are engaged in such companies are more committed, productive, and positive. Additional perks and fringe benefits such as on-site daycare, gyms, coffee shops, often add value to creating best places to work. Furthermore, salaries must be competitive to retain talent, so you should evaluate compensation annually, as much as possible. Consider giving awards for good performance, bonuses for exceptional performance or results, and using technology to promote the hard work of your employees.