Everyone is talking retention these days. And why not - despite the recent shift in the economy, it is still vital for companies to retain top talent. We all know that it is expensive to find, hire, and train new workers, especially when they are replacing highly trained or longtime employees. But, what is the key to retention?
An obvious answer is incentive programs, such as yearly bonuses, flex time, on-site day care, and excellent benefit packages. However, that would be a subject for another article. While it is certainly important to remain competitive when it comes to offering perks and benefits, these plans may not be the most important factor of retention.
According to a recent Gallup Organization study of approximately 2 million workers at 700 companies, the number one reason people leave their jobs is because of poor management, more commonly referred to as “bad bosses.” So, perhaps retention needs to begin with an employee’s direct manager.
Let’s start by examining what employees say makes a bad boss. Reasons include: failing to provide feedback or ask for employee input; taking credit for employee’s work; reneging on a promised salary, bonus, or benefit; pushing employees while slacking themselves; micromanaging/being too controlling; insisting employees routinely come in early or stay late; and turning down ideas without listening or considering them.
Management needs to focus on issues that are important in today’s workforce, such as communication, respect, and quality of life, if it wants to keep its talent base intact. To do this, companies first need to develop managers who are strong, flexible, and aware of what’s going on in their departments. Then they need to hold these managers responsible for retaining their employees.
Not an easy task since, understandably, managers do not want to be held accountable for the independent decisions and actions of others. However, it may be necessary for the organization to implement a manager retention accountability strategy.
John Sullivan, HR expert at San Francisco State University offered these suggestions in Workforce magazine (April 2001). 1) Schedule regular, consistent meetings with employees, allowing them to discuss workplace concerns and solutions. 2) Regularly review the employee’s goals and expectations for customized career development. 3) Measure employee feelings regarding management on a regular basis. For example, conducting interviews or providing anonymous employee attitude surveys. When legitimate problems surface, offer training to the manager, giving him or her time to improve that area of concern. 4) When turnover is a big problem, hold managers accountable by tying compensation to retention.
It’s important to recognize that employees leave because their basic needs are not being met. Managers can be proactive about determining what each individual wants the most from their job. It may be surprising to learn that acknowledgement and appreciation are common answers.
While management is certainly only one factor in retention, it may well be one of the most important, representing a primary reason for employee turnover. Continuing to focus on the other pieces of the puzzle without developing good leaders may not do much to improve retention in the long run.
