Employee retention ...

How you can avoid losing your key people

This article was published in Coach Newsletter, January 2004

It's late Friday afternoon and Karen Smith, manger - business development, is finishing up her work day and starting to think about what she will need to focus on first thing Monday morning.

Steve, one of her best employees, knocks on the door and asks if he can talk to her. Steve, who has been with the company for 10 years and has been excellent at bringing in new clients, has always been thought of as a star performer.

"Sure, come on in," says Karen. "Karen," says Steve, "I have a job offer from one of our competitors and I am considering taking the job." Karen suddenly gets a queasy feeling in the pit of her stomach.

This is the kind of situation that creates big headaches for managers. But the good news is that effective managerial action can reduce the chance of this circumstance happening to you.

We all know that employees who are more satisfied with their jobs are more likely to stay with their current employer. We also know that the top reasons people stay with a company haven't changed in years. According to Career Systems International's Retention and Engagement Drivers report, the three main reasons people stay are: exciting and challenging work; career growth, learning and development; and working with great people and relationships.

If those factors are present, employees would rather stay with their current companies. Firms that are serious about retaining top talent have a great opportunity to create a culture that fosters the attraction, development, and retention of top talent.

Here are several suggestions to help managers and supervisor create such an environment:

• Check the pulse of your top performers. Have periodic check-ins where you inquire how things are going. Find out how the person feels about his role. Is she challenged by the work? What can you, as a manager do to help? What suggestions does he have for improving the bottom line? Once you ask the questions, make sure to listen and don't over promise.
• Communicate regularly and openly. Hold informal staff meetings to check in with employees, provide updates, and listen to what they have to say. Small, regular breakfast or lunch meetings with the CEO or another senior leader are a good way to offer your star employees an opportunity for visibility and a chance to share new ideas or strategies.
• Schedule focused career discussions. Schedule time to help the employee create individual career development plans that address short and long range goals. Ask employees to do an individual assessment of their competencies while you assess them, too . Meet to share your thinking. Focus on where your perceptions were similar, where different, and create a plan for how to close the gap and achieve the employee's goals.
• Create opportunities for development. Allow employees to attend courses to broaden their competencies, or develop new ones. Enable employees to take on projects that may not be directly applicable to their current role. Create opportunities for mentoring. Help make those connections through formal or informal channels.
• Provide opportunities to move within the company easily. Many employees feel that it is easier to leave a company than to move to another department or business unit. Help an employee find another position within the firm before considering leaving the organization.
• Help employees build an internal network. Actively promote employee interaction and teamwork. Set up buddy systems for new employees. Help your staff get to know other parts of the organization. Encourage information sharing and networking opportunities with other divisions within the firm.
• Improve leadership skills. It is often said that employees leave managers, not organizations. Help develop the skills of your managers to be able to run an effective team. Given them chances to sharpen their skills in providing feedback, having career discussions, mentoring staff, listening, and understanding.
• Establish accountability for retention. Discuss retention issues regularly. Ask questions. Conduct employee surveys. Work with your HR staff to understand the true reasons behind turnover and consider tying retention to performance goals of your managers.

In summary, retention is a critical issue that should be considered regularly. Truly focusing on treating employees as a firm's number one asset will help create an organizational culture that will ensure the retention of top talent; and put your firm ahead of the game in the "war for talent."

Ilona Birenbaum is a principal with The Wynhurst Group, a boutique HR consulting firm focusing on HR strategy consulting and employee development programs. To learn more about The Wynhurst Group, visit our website at www.thewynhurstgroup.com. Feel free to e-mail Ilona at ilona@thewynhurstgroup.com with any thoughts or questions on this article.

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