Are you struggling with retention?

If your company is like most of the ones we have worked with this year, staffing and retention are at the top of the minds of most HR departments and leadership teams. While the employee market is starting to slow for most, some companies are still dealing with staffing shortages. Of the employee engagement surveys we conducted this year, the lack of staffing and the inability to retain top performers have been among the lowest-rated questions for many of our clients’ surveys. If that is your company, know you are in good company as we have seen it with all different industries and sizes of companies. 

What are the reasons people give for leaving and what can you do about it? The most common reason we hear is that people leave for more pay. But, we find that pay is usually only half of the story and not the deciding factor. It usually has more to do with the following areas:

1. Lack of Development and Advancement Opportunities: Employees may leave if they feel there’s no room for growth or advancement within the organization. The most engaged employees state that development opportunities are the number one factor they seek in a job. That is why it is critical that companies have a growth and development plan or program for managers to work with. Great leaders will have one for their staff, whether the company has a formal plan or not. To ensure that all employees have access to these opportunities, it is important that companies have a formal development plan or succession plan for managers to work with.
2. Lack of Recognition and Appreciation: Employees who feel their efforts aren’t recognized or valued may become disengaged and leave. This is particularly true for your high performers. Leaders at all levels of the organization must make recognition a daily part of their leadership and ensure that top performers know you value their contribution. This can significantly boost their morale and motivation, leading to higher retention rates. 
3. The Culture: The culture greatly influences whether an employee decides to stay or go. Employees usually come for the job and the pay, but they stay for the leadership and the culture. Conduct employee opinion or engagement surveys to measure your culture regularly. Identify areas of growth for each department and hold leaders accountable for the culture in their areas. One leader can make or break a department’s and, ultimately, the organization’s culture.
4. Reward Outstanding Performance: As the old saying goes, you get what you reward. We mentioned recognition above, but rewarding performance is a key part of it, too. Nothing demotivates a top performer faster than a leader who rewards everyone equally or rewards mediocracy. Why should employees put extra effort into their work if it will result in being paid, rewarded, and recognized the same as the lowest performer? Regularly acknowledge and reward employees based on their level of contribution. To learn more on this topic, check out our blog on Rewarding Mediocrity over Performance
5. High Work Loads/Work-Life Balance: Jobs that require excessive hours or high workloads without an end in sight or flexibility can lead to burnout and result in turnover. Most employees are willing to give it their all to help their company succeed through a project, deadline, or transition of a staff member. However, there is a tipping point if employees don’t see an end in sight. In this situation, most will conclude that it is not worth it anymore and will look for another job. Check in with staff regularly so they know the leader genuinely cares about their well-being. 
6. Invest in Leadership Development: If your employee engagement surveys reveal development needs for your leadership team, ensure you provide leaders with the coaching and training they need to be successful. Provide ongoing learning opportunities to help employees enhance their skills and stay engaged in their roles. Since 70% of an employee’s satisfaction is directly related to their relationship with their manager, not developing your leaders will only result in high levels of attrition. Several clients are also experiencing a leadership gap due to the high employee labor market. Click here to read more on how to help with this situation. 

If your exit interviews reveal it is all about pay and you are paying a competitive wage, it is probably not about the pay, and you will need to dig a little deeper. By addressing these factors above, companies can improve retention rates as well as their corporate culture. Remember, employees come for the job and the pay but stay for the leadership and the culture.