Today’s post comes courtesy of my ever-supportive husband, who saw an article at cnn.com for me to share with you. The article profiled the bold recruiting and retention strategy of a South Carolina small employer that offers $50,000 bonuses to full-time employees who stay with the company for five years. Stay for 25 years and employees get a $250,000 jackpot.
After sending the company 10 copies of my resume (it’s SIB Development and Consulting in Charleston. And I'm kidding, by the way.), I immediately set about writing this post.
The first thing I thought when I read this article was that the company’s CEO, Dan Schneider, needed to have his head examined. I know replacement and training costs for a bad hire or high turnover are high, but 50 grand seems a bit extreme for combating that.
Schneider acknowledged my incredulity. “Most people think I am nuts, and I am fine with that,” he told the website.
Well, at least he’s self-aware; I’ll give him that.
However, what I found most intriguing about Schneider’s comments was his reasoning for offering a $50,000 retention bonus in the first place: “In this day and age,” he said, “there is nothing that makes people loyal to companies anymore.”
Hmmm. Really? Nothing?
What do you think? Is Schneider right that “nothing” makes employees loyal anymore (besides huge piles of cash)? Or, is he missing the non-monetary rewards that can improve retention rates? Share your thoughts in the comments.
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