I moderated a panel discussion entitled Winning the War for Talent recently and all the interest centered on retention. These were insurance leaders, but I think the principles are universal. There has been endless discussion about the “fact” that people have no loyalty these days to the organizations employing them. But I don’t think that’s true. In my mind, it is a continuum. On one end, you have the employees and their expectations. On the other, you have the employers and theirs. In both cases, perception is reality.
When an employee resigns, for example, many managers shake their head and say, “There goes another one,” as if there is nothing they could have done. One person I spoke to right before the panel discussion, said “We’re resigned to the fact that turnover has increased because of all the uncertainty. So, we’re placing all our focus on recruitment.”
At the other end of the continuum are the employees who are making these choices to leave. A McKinsey study of 13,000 employees across six countries in mid 2022, found that 41% left due to lack of advancement, 36% due to compensation, 34% due to uncaring leaders, 31% due to lack of meaningful work, and 29% due to unsustainable work expectations. With the exception of compensation, all of these are a function of employee perception.
What’s the key? Clearer communication. An employee might say, “My boss doesn’t care about my development, work, or contribution to the organization. But has she mentioned her concerns? A manager might say, “I had no idea she was unhappy,” when someone puts in their two-week notice. But is he doing anything to check in regularly with the people on his team?
One of the most effective ways to improve retention is also one of the most simple. It’s called re-recruiting. Organizations that are able to stabilize and improve retention expect their supervisors, at all levels, to conduct regular conversations with those on their team. This does not have to be a formalized process. In fact, it’s usually better if it is not. A quick coffee or chat after a virtual meeting is all it takes. Managers who show active empathy and concern are more likely to get restless employees to reveal their concerns. When they do, this opens an opportunity for resolution.
All this said, it is also the responsibility of employees to be honest and upfront if they are restless or unhappy. Those who tell their supervisor that everything’s fine while complaining to co-workers and job searching are, in my mind, acting unprofessionally. Truth is, the grass always looks greener, but rarely is. There is no such thing as the perfect work environment. In fact, one person on the panel I moderated told of losing someone who came back looking for his job after only four weeks.
Besides this, managers and leaders can look for the signs of leaving behavior. Some of these signs are rather obvious. Others are more subtle, especially in today’s hybrid working environment. I have written about this several times. Click here for the most up-to-date version of the article.
Bottom line? If given a choice between placing your time and treasure on recruitment or retention,
I would choose retention every time in a knowledge worker environment. If you already have good people on board, why would you focus your energy on recruiting new ones? I’d be interested in your thoughts and stories. Email me at bobw@commonsenseenterprises.net.