Talent – How Do You Keep It?

By: Bob Dearing, CFE

Congratulations! You have finally found exactly the right candidate to fill one of the most important positions in your company. The interviews went great, the references checked out, the background check came back clean and the candidate has said “yes” to the offer. The onboarding team quickly sprang into action and got the process well under way. Paperwork done, business cards ordered, work area prepared, teammates updated and everything ready for reporting day bright and early next Monday morning. Hallelujah!!

Just one question…Why was this important position open?

Who goes and who stays?

Companies sometimes forget that without their employees their company could no longer exist. People come and go for a multitude of personal or professional reasons in the normal course of business. Some change is to be expected; however, the question is what causes people to leave and what do we do to slow the turnover process?

 Attacking turnover as a “one off” event will not provide a long-term solution. Let’s look at the process that contributes to creating a fully engaged and valued employees and how they reached that status. Then let’s look at some of the “root” causes that prompts people to leave.  The result of all of this is a better understanding of how to improve Employee Retention.    

Back to the question – Why was the position open?

There are only two possible answers. Either it is a new position, or the employee that formerly held it has left your employ. If it was an involuntary departure, then I understand. If it was not, the elephant in the room is, why did they choose to leave? 

Without question the single most important asset a company has is its people. Sadly however, in some cases it is the most poorly managed. People management, good or bad, determines if an employee flourishes and stays or withers and leaves. In today’s business world the “why” we are looking for is wrapped up in the popular euphemism Employee Retention.

Where does the process begin?

Employee Retention does not happen by accident. It is a process that begins all the way back at the recruiting stage of the hiring procedure. Employee Retention is just one component in a six-part initiative that leads to overall success. One step leads to the next however realistically they are not sequential but simultaneous.

A successful organization is a homogeneous blend of all six of these steps. To talk about one is to talk about all since they interconnect, overlap and the lines between them becomes more blurred as we dig deeper. The steps are:

• Recruiting, Interviewing, Hiring
• Onboarding
• Employee Engagement
• Employee Experience
• Culture
• Employee Retention

Notwithstanding the interdependence upon one step to the other we will focus our attention on Employee Retention.

The cost of retention.

The truth is that the cost of retention itself is far less costly than the loss of a valued employee. A recent article in Employee Benefit News reports that the average employee exit cost is 33% of their annual salary. The replacement cost for recruiting, interviewing, training, testing and onboarding is high enough but even more costly is the loss of talent and experience.  Depending on the exiting employees position you could even lose valuable customers.

Recognizing employee value.

The key to understanding employee value is to understand employee engagement. An engaged employee is motivated and connected to the company culture. He or she feels valued and feels he or she is making a contribution to the greater good. Engagement leads to a healthier employee experience and the combination of these events leads to a productive, loyal and valuable employee. This is exactly what you want, a valued employee! Sir Richard Branson understands and appreciates the value of employees and his quotes on the subject go to the heart of employee retention. Probably his most widely used on the subject is

Train people well enough so they can leave, treat them well enough so they don’t want to. 

                                                                          -Sir Richard Branson

What affects employee retention?

Many things can and do affect retention. Some are obvious while others are more obscure. Seth Richtsmeier in a recent TINYpulse article “Surprising Statistics About Employee Retention” clearly outlines issues affecting employee retention.

• Bad boss performance makes employees four times more likely to quit.
• Employees unrecognized when they do great work are two times as likely to be job hunting.
• Employees won’t stay if there isn’t a culture of encouraging upward feedback.
• Clear onboarding processes make employees happy.
• Feeling undervalued jump starts the job search.
• Career advancement retains talent.
• Bad culture breeds high turnover and low employee retention.
• A sense of purpose has an impact on employee retention.
• Work-life balance is more valuable than you think.
• Professional growth is top priority.
• Empowered employees are happy employees

This list raises awareness of what affects retention. Review the list one issue at a time. Decide if it applies to your company and if so, what action should be taken to improve or implement.     

So, what do we do about it?

Pointing out the reasons people leave is the easy part. The hard part is deciding what to do about it. Jim Sullivan, noted author and speaker, offers the following solution. Somewhere between recruiting and retention lies the little used process of “re-recruiting”. This means keeping your “A” players engaged, appreciated and energized every day. It is done by showing appreciation and letting them know why their work matters.

Outstanding productive employees are almost always high maintenance in that they expect focus, goals, guidance, appreciation and recognition from their supervisors. Focus and goal setting seem to be naturally abundant in the supervisory skillset, but appreciation, encouragement and recognition are in a little bit shorter supply.  Why is that?

One more thing from Richard Branson

Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.”                                                                                                                                                                                                           

                                                                     – Sir Richard Branson