Listening to employee ideas and complaints is another important aspect of communication. Employees who do not feel listened to will be demotivated. So can the Performance Management process. Listening to employees gives them a message that they are valued and provides them with a sense of control over their work situation. Providing recognition to employees is a third aspect of communication.
Pay is overstated as a retention tool.
The areas mentioned above are more important for retention than pay. This subject is discussed in detail in a separate section on compensation . There's also an increased risk of wrongful termination lawsuits, but this can be mitigated by rigorous and objective layoff selection process and severance packages. Staffing planning is one way to reduce the need for layoffs. I don't believe that a reliable staffing planning systems exists.