Employee engagement and retention are critical for the success of asset management organizations. High turnover rates and labor shortages pose significant challenges, impacting operational efficiency, safety and overall workforce morale. Consultants have the unique opportunity to observe the inner workings of multiple organizations, gaining insights into what truly drives successful employee engagement. These insights have revealed that engagement is not just about retention — it is about creating an environment where employees feel empowered, valued and motivated to perform at their best. This article shares the retention strategies that have proven effective across various organizations, including how leveraging projects or initiatives can bring teams together, the role of culture and support in fostering engagement, and the importance of measuring success to continuously adjust and improve. Based on what consultants have seen work well, these strategies are key to building a thriving, engaged workforce that drives long-term organizational success.
The Cost of Workforce Turnover in Asset Management
Employee turnover has significant financial and operational consequences. Industry reports indicate that 76 percent of manufacturers struggle to fill critical labor gaps, with turnover rates rising to 62 percent in recent years. Replacing a skilled, frontline worker can cost between $20,000 and $40,000, factoring in recruitment, onboarding and lost productivity. Beyond financial losses, disengagement among employees can weaken workplace morale, lower productivity, and increase safety risks. A disengaged workforce often leads to complacency, communication breakdowns, and higher operational costs.
Leveraging a Project to Bring the Team Together
A highly effective strategy for workforce engagement that leads to significant improvements in team culture and overall engagement is leveraging a project or initiative to bring the team together. By creating a shared goal or focus, team members feel more connected to one another and motivated to contribute toward a common outcome. This sense of unity and purpose fosters collaboration, strengthens relationships, and boosts morale. Additionally, such initiatives not only enhance individual commitment, but also cultivate a positive work environment where people feel more invested and engaged in their roles. This approach has proven time and again to be a powerful way to drive both team performance and overall satisfaction. Leveraging a project for change can be done in a structured, three-stage approach. This fosters engagement, drawing from change management principles outlined in the Reliabilityweb.com article, Realizing Organizational Change in Three Stages.
Stage 1: Communication Is Key
The first stage involves clearly communicating the purpose and benefits of workforce engagement initiatives and projects. Forming cross-functional teams to support these efforts and developing a structured plan with defined goals, communication strategies, and implementation steps are key elements in laying the groundwork for change.
Stage 2: Taking Ownership
Encouraging ownership at all levels ensures employees feel responsible for their contributions. Collaboration across teams must be actively promoted to break down silos and foster a cooperative work culture. Open communication allows employees to share feedback and see tangible changes based on their input. Leadership plays a crucial role in this phase, acting as sponsors who guide and support, rather than simply enforcing top-down decisions.
Stage 3: Embedding and Sustaining Engagement
The final stage focuses on embedding engagement practices within the organization and ensuring they persist over time. Regular assessments through surveys, one-on-one check-ins, and performance metrics allow companies to track progress and make necessary adjustments. Recognizing small wins and celebrating team achievements help sustain motivation. To solidify engagement efforts, an organization must align data, systems and processes with engagement initiatives, ensuring they remain an integral part of the company’s culture, rather than short-lived programs.
Retention Strategies: Culture and Support
Beyond engagement, key retention strategies center on workplace culture and employee support. A culture of respect and recognition enhances job satisfaction and fosters long-term commitment. Employees are more likely to remain engaged in an organization that values their contributions and listens to their concerns. Consistency in leadership actions and messaging builds trust and reinforces a sense of stability.
Providing tangible support mechanisms is just as critical for retention. Career growth opportunities, such as upskilling, training and development programs, demonstrate an investment in employees' futures. Leadership training helps managers develop the skills necessary to support and guide their teams effectively. Ensuring a safe and healthy work environment is another essential component, as employees need to feel both physically and psychologically secure in their roles.
Measuring Success to Boost Retention
Gather and analyze feedback to generate meaningful insights that can guide decision-making and help build a strategy. Regularly conducting anonymous employee surveys helps gauge sentiment and identify areas for improvement. One-on-one check-ins provide an opportunity for more personalized feedback and dialogue. Monitoring key metrics, such as turnover rates, role-specific engagement levels, and team performance trends, helps assess progress and guide informed decisions.
Connecting Engagement to Organizational Change
The framework for workforce engagement aligns with broader insights on organizational change. Effective change management depends on structured communication, leadership involvement, and continuous evaluation. These principles apply equally to workforce retention — employee engagement must be an ongoing initiative, rather than a one-time intervention.
Addressing Ongoing Workforce Challenges
As asset management organizations face ongoing workforce challenges, proactive engagement strategies are essential. By creating an environment where employees feel valued, supported and invested in, companies can reduce turnover, improve productivity, and foster long-term success.
