Employee Retention: The Calm Before the Storm

By Marcia Reynolds, PsyD, CEO, Covisioning

The greatest risk for companies right now is the potential loss of their star performers in the months to come. Employees who love to do good work and who are still producing great results may appear committed to the organization, but they’re not. In fact, many are “cocooning” as they wait for the economy to rebound. And then, in what may be perceived as an unexpected decision, they will make their moves to new organizations, often the competition. This is what is known as the calm before the storm.

Fortunately, companies can prepare themselves and do damage control, but only if they are proactive. Yet, the reality is that many companies wait until they see a drop in performance before they recognize that something is amiss. As a result, they are likely to be caught off guard and unprepared for the pending resignations and the departures of star performers.

When the Flood Gates Open

The Corporate Executive Board predicts that the minimal amount of top talent turnover in 2011 will be 25 percent (“How to Keep Your Top Talent” by P. Edelman, CEB Views blog post, May 2010). With the majority of today’s employees feeling overworked and under-appreciated, it’s likely the exodus is grossly underestimated, resulting in the greatest exit in history. What makes it worse is the first to leave will be the company’s best employees.

In addition to losing many star performers, companies are likely to experience personnel issues. These include:

1. Shortages of specific skill sets. As the economy begins to recover, certain skill sets will be difficult to find.
2. Gaps in the leadership pipeline. Succession preparation continues to take a backseat to improving productivity.
3. Paying top dollar for experienced new hires. Organizations that cut back on training during the business slowdown will pay more to hire trained, experienced people.

The reason for the expected high turnover is that the knee-jerk reactions of leaders to the economic crisis have spawned a pervasive sense of betrayal. The deep cuts, pressure to perform with less, and lack of recognition sapped commitment. The good news, however, is that there is still time to assess the possible damage that will occur and take steps to engage top employees today so companies won’t be struggling to retain them tomorrow.

Assessing Damage Control

It is difficult to know how unhealthy the workplace has become when employees don’t feel comfortable speaking up. Accordingly, companies probably won’t get the information they need by asking people. As an alternative, consider holding focus groups with skilled external facilitators or sending out anonymous surveys. Using these approaches, companies can measure engagement and accurately discover what top employees want and need to recommit to the company. In addition to standard engagement surveys that rate satisfaction with the organization and manager performance, it is important to ask open-ended questions to gather opinions and ideas on topics such as:

• What do you most like about your job?
• What does your manager do for you that you appreciate?
•  What is the company doing that you think is smart?
• What disappoints you?
• What doesn’t make sense?
• What do you think management should do?
• What would energize and engage you?
•  Do you trust this survey will lead to positive changes in the organization? Why or why not?

Simply asking these types of questions is not enough. Acting on the information you receive is also essential. No one likes to share their ideas only to have their input ignored. Once companies develop and implement retention strategies based on what they’ve learn, they should continue to use these tools to monitor the results of these efforts over time.

Engage Employees

To engage employees, the first step is to acknowledge that employees are entitled to be angry and suspicious. According to John Kador, author of “Effective Apology: Mending Fences, Building Bridges, and Restoring Trust”(Berrett-Koehler, 2009), “a statement expressing sympathy will go a long way to creating better working conditions. The important thing is for the top executive to accept responsibility for decisions the company made (instead of blaming market conditions). The message is, ‘We want you to know that we feel terrible that we have treated employees so badly. Moving forward, we’re going to do our best to make sure it doesn’t happen again.’” This is a good first step to rebuilding the bonds of trust.

Whenever possible, challenge the rationalizations that could lead to further disengagement. Ask all managers to examine any decision to exclude employee input and cut employee development. What led to the current “standard practices?” What rules and processes say, “We don’t trust you?” Help expose faulty thinking based on limited, short-term options.

Then create the sense that “we are all in this together.” It’s time to ask valued employees how to create a better future together. Cultivate a collegial rather than competitive atmosphere where people enjoy being creative and productive with each other.

When conducting research for my book, “Wander Woman: How High-Achieving Women Find Contentment and Direction”(Berrett-Koehler, 2010), I found that high achievers need more than promises of promotions and salary increases to stay committed. To retain top talent, be sure your company provides:

1. Development opportunities. Even if the company can’t afford training programs right now, provide coaching, mentoring, and networking. Top performers love the chance to share ideas, debate approaches to current challenges, and teach each other.
2. Frequent, new challenges. High achievers love to learn and to apply themselves to resolving new and complex challenges. Make sure to publicly praise their work, giving them a chance to shine.
3.  Praise both contribution and value to the team and company. Although they love to be acknowledged for their knowledge and ability, high achievers need everyone to know that their contribution made an impact. They want their work to be meaningful, as well as efficient.
4.     Flexible work schedules. High achievers crave autonomy and flexibility. Give them clear goals and expectations, but then trust they will complete their commitments on time whether they work in the office or in the park across the street.
5. A creative and collaborative work environment. Most high achievers love to work in environments with an open flow of communication. They don’t like working through hierarchies. They enjoy fast-paced climates where innovation is fostered and fun appreciated.

A storm of employee turnover is brewing, but companies can squelch it if they take the right actions. By implementing practices that inspire collaboration, contribution, excitement, fun, and trust, companies can engage star performers today so they don’t lose them tomorrow.

Marcia Reynolds, PsyD, coaches top-talent women and speaks globally on cultural integration and leading change. In addition to her bestseller, “Wander Woman: How High-Achieving Women Find Contentment and Direction” (Berrett-Koehler Publishers, 2010), she authored “Outsmart Your Brain” (Covisioning, 2004). She is a Master Certified Coach and a past president of the International Coach Federation. Dr. Reynolds may be contacted at Marcia@outsmartyourbrain.com, or for more information, visit http://www.outsmartyourbrain.com