5 Employee Retention Strategies for a High Performance Environment
1. Hire retainable employees
The pressure’s on from Day One in a high performance environment. While some thrive under pressure, others will falter. Elissa Tucker, Human Capital Management Knowledge Specialist atAPQC, says the first thing leading organizations are doing to curtail this type of turnover is a focus on “hiring retainable employees.”
While there are some obvious indicators of a candidates’ ability to deliver consistently (e.g. three to five years’ tenure in a similar role), there are other signals that can provide insight in your sourcing and screening.”
Tucker suggests working with your managers and top performers to identify what backgrounds, skills or personality characteristics your retainable employees have in common.
2. Plan careers, don’t fill roles
It’s easy to focus on the near-term when managing people in a high performance environment. You bring in “A” players with the expectation that they’ll succeed in the role for which you’ve hired them — and unrealistically assume they will stay in that role forever. Your top performers are thinking about their career, and you should be too.
“Best-practice organizations work to help individuals plan to stay with the organization — to plan their careers with the organization,” says Tucker. The key is to guide your employees in mapping out how they can attain their career goals within your company.
For example: If a top salesperson sees her current role as a rung in the ladder up to senior management, outline some long-term goals that will get her there. If another is just in it for the money, keep him in challenging roles that will reward him for working hard and allow him to play hard.
3. Make retention personal
Every employee is motivated by different things, and retention strategies thus need to be tailored down to the individual level.
You may be surprised to find that monetary incentives are low on the list of responses you get. These days, “A” players are more concerned with challenging work, personal and professional growth opportunities, work/life balance, and workplace flexibility.
4. Get to the heart of underperformance
Let’s face it: Underperformance happens, but you don’t want to lose employees who were previously strong performers. If you notice a drop in performance, Miranda advises against writing them off without first getting to the heart of the issue.
In my conversation with Miranda, we broke underperformance down into a few root causes:
Skill and competency issues often come up when someone’s been promoted into a role they weren’t quite ready for. Fortunately these can be addressed with coaching and training–and usually for a fraction of the cost of replacing an employee.
Behavioral issues are usually more difficult. “If it’s a behavior issue,” Miranda says “identify the source of the issue to get an idea of whether it’s something worth investing the time and effort in.”
Personal issues are a leading cause of burnout among top performers. Things come up (divorce, health issues, mortgage issues, etc.), and can distract employees from their work and affect their ability to deliver. In these cases, a little support and flexibility will go a long way toward cultivating loyalty.
You may uncover trends in underperformance that you can use to your benefit. Are employees bored with the work? Are people burning out after six months? This kind of feedback is vital to the refined people process that supports success and curtails turnover.
5. Invest in your line managers
“Employees don’t quit jobs,” says Miranda. “They quit managers.” He estimates that 80 percent of turnover is driven by the environment a manager creates for an employee (compared to 20 percent resulting from issues with company culture). Because of this, any investments in training and development for your line managers are well-spent.
The success of your retention strategies are ultimately subject to your line managers’ ability to deliver on initiatives you put in place. According to Tucker, “Whatever your company values, you have to be sure your managers are executing on it. Help them help you reduce turnover. Teach them how to empower employees to succeed and grow, rather than just drive performance.”
It’s also critical to keep the line of communication about careers wide open between employees and managers, especially because career goals change over time. Build more opportunities for employee check-ins (formal and informal) with managers. As Tucker points out, “Individualized conversation needs to happen on a regular basis.”