Retention has become an increasingly critical metric for driving profitability, especially the retention of highly engaged employees. Turnover has become a big problem for a lot of companies. 

But, what if you’re looking at the problem wrong? What if it’s not about doing what you can to hold on to those employees, but perhaps it’s about focusing more on creating an environment where good employees thrive and stay?

Retaining employees is an important part of building a successful team. When managers and supervisors work to make their teams feel valued and motivated, employees are more likely to stay with a company that can contribute to the company’s overall growth and prosperity. 

 

●     It can build a strong workforce

Steady employee retention allows managers and supervisors to invest in their team members and helps them develop into more productive employees. When employees stay with a company long-term, they often accept more responsibilities, seek professional development, and help the company grow.

●     It increases productivity

Instead of spending time looking for and training new employees, managers and supervisors can focus on helping employees be more productive. A stable staff knows what needs to be done and how they can achieve it. They have a strong foundation for advancement based on institutional knowledge and developed skills.

●     It improves employee morale

Employee retention strategies are designed to increase employee happiness and job satisfaction. When managers regularly implement these strategies, they help increase employee morale overall. Employees who feel happy at work are often more willing to work toward the company's mission and contribute to a positive work environment.

●     It is more cost-effective

Hiring and training new employees are often more expensive than offering development opportunities to current employees. Consider offering current employees an educational stipend to advance their skills, on-site training, conference options or promotions, and/or extra benefits or perks.

 

If you want to keep more high-performing employees in-house, it’s important to start by creating an effective employee retention strategy.

In this article, we discuss the importance of employee retention and offer 8 effective employee retention strategies for leaders. 

 

During the onboarding process, take the opportunity to make a positive first impression on a new employee. Create a process where new employees get comfortably acclimated to the workplace. Do this by creating straightforward training materials, offering support and guidance, and explaining how the company operates.

Introducing new employees to others in the office can help them feel like they are a part of the team right away. Taking them out for a team lunch is another way to make new hires feel welcome and help them get to know their coworkers quickly.

 

A strategy to pair an employee with a mentor can start with the onboarding process. It’s a good way to help new employees feel welcomed and know they have someone to turn to. However, mentorship shouldn’t be offered to just new employees. Everyone can benefit from a horizontal mentor relationship whether by helping others or knowing that they are supported by more experienced teammates.

 

Employee performance reviews are a great way for employees to grow in their roles. Meet periodically to discuss their strengths, weaknesses, and career goals. By learning their goals, you can help them continue to advance in the company. 

Offering positive feedback during this meeting can help employees feel valued and more satisfied at work. If the budget allows, use the performance review as a time to offer the employee a raise or a bonus.

 

When an employee is doing a good job or has recently earned a big achievement, recognize their hard work. You can show your appreciation by saying it directly to them or making a company-wide announcement. When employees feel their efforts are noticed, they are more likely to continue to work hard and stay with the company.

 

A healthy work-life balance is when employees can effectively manage their work and home lives and feel like they have enough time and energy for both. This element has become increasingly important to many employees.

You can help employees achieve a more balanced work-life experience by giving staff more flexibility with their schedules. Consider allowing employees to come in late and make up their work if they need to leave for an appointment. If possible, give employees the option to work remotely. Employees who are feeling sick but can still work or those with a long commute may appreciate the opportunity to work from home occasionally.

Helping employees maintain a work-life balance shows that you value their well-being. They are more likely to stay with the company when they feel like they have a manager who cares about them.

 

Helping employees meet their professional goals may influence them to stay with the company because they see it as a place with many opportunities. You can help them by spending time coaching and mentoring team members. Offer your team additional training or education opportunities, such as funding certifications, sending them to conferences, or providing education stipends. Update equipment so coworkers can learn and produce using the latest technology.

And when possible, promote from within. By investing in your team, they can develop their skills and take on more responsibilities, both of which can lead to improved employee retention.

 

In a competitive job market, it’s essential that you reward your employees with adequate compensation and benefits when you can. If you can’t afford salary adjustments, consider giving some type of bonus, adding a retirement plan, or improving health care benefits. 

You might offer reimbursement for fitness classes or schedule talks on stress management or retirement planning services. All will help raise employees’ job satisfaction and encourage them to stay with your company.

 

Maintaining an open-door policy lets employees know they can come to managers with ideas, questions, and concerns at any time. As a manager, it’s your job to ensure your team, whether on-site or remote, feels a connection to the company and each other. The feeling of belonging and being heard can go a long way toward retaining employees.

You can’t ignore employee resignations, although I would prefer to call them employee realignments. In the beginning, it looked like employees were leaving the workforce to retire early or join the gig economy (think Uber drivers, virtual assistants, etc.) and be their own boss. 

Today we know that unemployment is down, and employees aren’t leaving their jobs to altogether quit working. They are just leaving their current jobs for better jobs. 

This is employee realignment of the workforce, not true resignation from the workforce, and there are many reasons some companies can’t seem to hold onto their best people.

Oftentimes, there is a lack of self-awareness amongst managers and leaders that creates unhealthy patterns in the workplace and leads top employees to quit. 

To provide your employees with just and equal opportunities in your business, you must understand the potential for unethical workplace behaviors and the importance of avoiding them as a leader. 

 

What’s happening on the inside of an organization is felt on the outside by customers. That means you start your customer service and CX efforts internally. 

Employees should be treated, cared for, managed, and responded to in a way that is consistent with what the company wants to see mirrored in their customers.

In other words, treat employees as if they are customers. Anything less is inconsistent and will erode your efforts to provide a good customer experience. 

And just as customers want to trust the companies they do business with, employees want to trust the companies (and people) they work for. When employees trust their leadership, are treated fairly, and are recognized for their good work, they will be working for the company, not just the paycheck.

 

Management and leadership are not the same. Managers have to make people follow, but leaders make people want to follow.

Ultimately, leadership creates the culture of the company. 

Managers ensure compliance with company policies, processes, and other operational aspects to ensure continued business as usual. 

Once leaders understand the difference between management and leadership, they stand a better chance of getting employees to put forth their best effort, especially when it comes to taking care of customers.

 

Instances of nepotism create an unhealthy work environment wherein employees feel undervalued.

If nepotism occurs in the workplace, this could affect your employees’ job satisfaction and opinions about the company. If one person begins exhibiting low morale, other employees can also take on this approach. 

The result is a lack of loyalty and dedication to the job at hand.

If a company allows nepotism to occur, talented employees might look for employment opportunities elsewhere. Specifically, with companies that value skill and dedication over family relationships. 

This can be problematic for your company as it limits the ability to retain good, hardworking employees to help your business succeed. 

 

Everyone has experienced or witnessed instances in which credit was assigned in an unfair manner: managers unabashedly took credit for the work of their invisible hard-working staff; quiet performers were inadequately recognized for their contributions; credit was assigned to the wrong individuals and for the wrong things.

Just as much as constructive feedback should be given in many forms, so should employee appreciation. Some employees may live for public praise at the end of a meeting or a company all-hands, while others may prefer the intimacy of a quick chat in the hallway or an individual email thanking them for a job well done. 

As a leader, giving out credit is essential in showing your employees that you see them, and motivating your employees to continue creating their best work. 

Employee recognition may take the form of an employee of the month award, a sales all-star of the quarter, or even a full employee appreciation day.

While every company may not have the size or resources to devote an entire day to employee appreciation, recognizing employees in big and small ways can make a huge difference to morale and culture.

Feedback is crucial. It improves performance, develops talent, aligns expectations, solves problems, guides promotion and pay, and boosts the bottom line.

Workplace coaching, employee coaching, or business coaching is the continuous two-way feedback between the employee and the coach with the intention to work on areas for improvement and reinforce strengths to sustain the progress of the employee’s performance. 

In other words, coaching in the workplace means empowering employees to be the best performers that they can be.

Workplace coaching (NOT criticism) is important to set employees up for success in the workplace by providing the tools that workers can use to increase their knowledge and improve their skills.

Multiple studies have proven that employees want more than money. Employees value flexibility over money, meaning that paying people more money to tolerate a toxic environment may have worked for previous generations, but it no longer appeases employees, especially the Millennial generation. 

They want to be valued for what they do. That means they want recognition for their work, opportunities to learn and grow, and fulfillment in their day-to-day responsibilities.

            Leaders need to be more empathetic and understanding of their employees. Doing so will bring out the best in their people, hence multiplying their capabilities.

 

Nothing burns good employees out quite like overworking them. It’s so tempting to work your best people hard that managers frequently fall into this trap. 

Overworking good employees is perplexing; it makes them feel as if they’re being punished for great performance. Overworking employees is also counterproductive. 

If you must increase how much work your talented employees are doing, you’d better increase their status as well. Talented employees will take on a bigger workload, but they won’t stay if their job suffocates them in the process. 

Raises, promotions, and title changes are all acceptable ways to increase workload. If you simply increase workload because people are talented, without changing a thing, they will seek another job that gives them what they deserve.

 

Brian is the Vice President of engineering for a high-growth startup with 800 employees. His company pays way above the market average but they hold an “earn your seat” mentality when it comes to the work. 

The challenge that he is facing is that his team will follow instructions and do everything they are asked to do, but won’t move the ball forward. They are always waiting for him to tell them what to do, rather than aspiring to set goals to impact the company on their own.

He would like for his team to better understand the company’s vision, both because it develops them and because most of his direct reports are interested in the compensation that comes with transitioning from a senior engineer to a staff engineer (the highest level software engineer at this company with almost a $200,000 increase per year).

Some of his direct reports want parity promotions, meaning that because they have been at the company for longer than others (which for everyone is less than a year), they deserve to get promoted.

The promotion process at his company is also really convoluted. Essentially, to get promoted, a manager has to sponsor the direct report with a 10-page overview as to why the direct report deserves the promotion.

It has gotten to the point where Brian will actually recommend his direct reports leave the company for the role they want (at a different company) for 6 months and then come back and interview for the role they wanted in the first place because it’s very difficult and time-consuming to move up in the workplace. This contributes to the job-oriented mentality that incentivizes employees to only do the bare minimum to get their paycheck.

As Brian is sharing his company’s processes with the Ambition In Motion mastermind group, he is realizing that the company may not be setting its employees up for success.

The well-above-market pay paired with the “earn your seat” mantra incentivizes people to sabotage each other, do the minimum work that doesn’t get them fired, and leave the company if they want to get to the next level.

The group suggested that Brian chat with his leadership team to discuss his thoughts because if things don’t change, they could have a bunch of people that are only there for the money and aren’t focused on the vision of the organization.

 

Employee motivation is the fuel that propels the organization forward. When motivation levels are high, there is growth; when it’s down, the momentum stalls. 

So, what motivates your employees? 

There are various reasons and needs that motivate employees. And your company culture has to address these reasons and needs to foster employee motivation and engagement.

Before we get into this any further, let’s start with the basics. Why do people work?

 

●     Purpose – They want to contribute to the company’s success.

●     Potential – They want to benefit in the long run in terms of promotions, salary hikes, or greater responsibilities.

●     Play – They enjoy their daily work as it ignites passion and curiosity in them.

●     Economic Pressure – The financial factors motivate them, such as a desire to earn more or fear of losing their source of income.

●     Inertia – They work because they have to; they have no goals or reasons to work.

 

If you notice, the first 3 reasons are positive, and the rest are negative. Employees with positive reasons to work tend to be productive and engaged at work. 

Companies with growth-oriented cultures encourage these positive reasons and build a culture around it.

 

Although Brian is part of a fast-growing startup, 8x growth in employee headcount within their first year, his desire for employees to care more is actually a quite common question that we hear from leaders of all company sizes; how do you make people care? 

It’s a more common problem than we’d all like to believe. It happens in every industry and workplace. This problem affects all of us. 

Unfortunately, you can’t make people care. But, you can provide all of the right elements that inspire them to choose to care about your business, your team, and their job. Here are four strategies for successful leaders that can skyrocket the results of your employees.

 

1. Share your care with your employees. 

As simple as it sounds, many leaders, even when they do care about their people, aren’t always very good at sharing that appreciation. Your employees won’t care about your company or your goals unless you care about them and their goals first. 

Learn, practice, and get good at recognizing your employees because appreciation is the number one thing that managers can do to inspire their teams to produce great work.

 

As we travel and speak to organizations, we often find that many managers are confused by the difference between appreciation and incentives. Incentives can be seen as a transaction; if you accomplish “a-b-c”, then you receive “x-y-z.” 

Oftentimes incentives are presented before a project or assignment. 

Appreciation, on the other hand, isn’t solely focused on the outcome. Instead, it’s an acknowledgment of a person’s intention, hard work, and their results. When efforts and results are recognized, employees report:

a) increased confidence in their skills,

b) an understanding that they are on track and in good standing with their manager, and 

c) it creates an improved relationship with their leader.

 

Telling your employees that you expect the best from them doesn’t actually mean much to them because they don’t understand what that means to you. Employees want to know exactly what they value and appreciate.

 

Most people don’t apply for jobs and assume they’ll be mediocre at best. They apply for jobs at companies where they believe their skills and experiences will make an impact; where their thinking and effort will make a profound difference. 

Still, we’ve spoken with many struggling managers who can’t understand why a certain employee isn’t satisfied by simply becoming the mirrored version of a job description.

When employees are not shown that they have the capability to utilize their skills to make a difference, they may get in the habit of doing the same thing every day, without the incentive to do more. 

Encourage your employees right off the bat and throughout their time at your company to do the most that they can do, to benefit themselves and the company. AIM Insights can help you with suggested encouragement and questions you can ask your team to help convey this message. 

 

While it may seem frustrating that you can’t force your employees to care about your company, your goals, your customers, your teams, or even their own jobs, you have the ability to give them reasons to care. 

And, in our experience, when your employees care about more than just their salary, they’ll achieve at a level that surpasses anything you could have ever imagined.

Todd is an executive for a high-growth tech startup that has 400 employees. His biggest challenge in optimizing his team’s performance is the ever-changing nature of the business.

Todd’s CEO and board regularly come to him with changes to the company’s operations. Sure, he is involved in many of these decisions, but often by the time the conversation gets to him, the CEO and board have already made up their mind and changes are already in the works and he has to catch up. 

The challenge is that his team has been spending the past 3 months working on a completely different plan and now, much of that work has to be scrapped for this new plan.

As a mastermind group, the Ambition in Motion team asked Todd questions to clarify his situation and then we provided some suggestions.

One of the big suggestions was getting ahead of the trends so that he and his team could be a part of the change management process as opposed to having the change happen to them. 

This requires better data collection and access to user feedback information as well as the freedom to begin experimenting with new ideas as the new information comes in.

The other big factor in all of this is properly setting expectations both for his team and for his board and CEO as the ideas he and his team come up with may not work, but at least it gives them a lens into what they are trying and gives them an opportunity to experiment.

Ultimately, the ability to set expectations both for your team and for your leadership is critical to having work where the expectations meet reality and people are excited to come to work. When people feel unclear about their role or the changes happening at work and they feel powerless over them, stress ensues and people leave or worse, become actively disengaged.

Oftentimes, this confusion of beginning a new role with a lack of understanding, training, or data, occurs most frequently amongst new managers beginning the role as a leader of a new team. 

 Data in a workplace is absolutely essential. Data includes performance reviews, employee values, wants, and needs, as well as information about what previous employees implemented and how it impacted their teams. 

 The amount of data connected to an organization today is on an unprecedented scale and impossible to process manually; this is why it is important to invest in an effective data management system.

This is why data is seen as one of the most important assets of an organization; it is the foundation of information and the basis on which people make decisions. Hence it would follow that if the data is accurate, complete, organized, and consistent, it will contribute to the growth of the organization. 

Most importantly, the right data alongside proper training is what will lead a new manager thoroughly into the position of effectively leading a new team. 

These are some of the additional and undeniable benefits of effective data and how it can effectively improve a rapidly changing workplace.

1. Increases productivity

If data can be accessed easily, especially in large organizations, your company will be more organized and productive. It reduces the time that people spend looking for information and instead ensures that they can do their job efficiently. 

Employees will also be able to understand and communicate information to others. Furthermore, it makes it easy to access past correspondence and prevent miscommunication due to messages lost in transit.

For new managers, being able to access and identify information about past performance can boost effective leadership faster than having no data at all.

2. Smooth operations

A seamless operating system is every business’ dream and data management can make that a reality. It is one of the determining factors in ensuring the success of an organization; if one takes too long to respond to their customers or to the changing trends around them, they run the risk of falling behind. Heightening the data within performance reviews will allow for quick transitions of productivity for teams. 

A good data management system will ensure that you respond to the world accordingly and stay ahead of the competition.

3. Cost-effective

If you have a good system in place, you will spend less money trying to fix problems that shouldn’t have occurred in the first place. 

 Most importantly, improperly training new managers will lead to a decrease in productivity and ineffective leadership, which will ultimately lose time and money for the company. 

4. Better decision making

When everything's in its place, and everyone knows where to look for it, the quality of your decisions improves drastically. By nature, people have different ways of processing information, but a centralized system ensures a framework to plan, organize and delegate.

Additionally, a good system will ensure good feedback, which in turn will lead to necessary updates to the process that will only benefit your company in the long run.

Get ahead of the struggles that come with change; engage in the best management practices 

Performance review data must deliver meaningful results.

After you’ve properly trained your new managers, it’s your company’s job to provide your new managers with meaningful performance reviews to analyze. Meaningful reviews include honest feedback from employees; a product that your new manager can use to effectively lead their new team. 

 Traditional performance reviews lack meaning. Charts measure trends, but trends don’t tell a new manager how to make a difference, and how to best lead their new team and minimize the learning curve of new managers becoming effective leaders.

 So why do managers need more than just data to effectively lead their team? 

 There’s simply no training for a new position in analyzing charts. 

 What do the charts mean? Sometimes trends are low, and sometimes they are high. But that doesn’t tell you what the employees were thinking or experiencing when they filed these performance reviews. 

 Charts and reports are not training. 

 However, putting effort into detailed and trustworthy performance management with coaching will enhance training for new employees in new positions as well as guide your company in tackling the changes that occur within a workplace, and quickly making effective leadership decisions. 

             If you recently received a new position at your company and were handed a portfolio of various reports and charts regarding overall past performance analysis, and told to analyze them and start your position, what would you do? 

            Of course, you can analyze the charts, and look at the trends of performance over time within the company. But what does that tell you about your position, or how you should perform to receive the best results from your new direct reports? 

            There’s simply no training for a new position in analyzing charts. 

            What do the charts mean? Sometimes trends are low, and sometimes they are high. But that doesn’t tell you what the employees were thinking or experiencing when they filed these performance reviews. 

            Charts and reports are not training. 

            In my last article, How to get your new managers to be more effective faster, I discussed the flaws within the current way that we equip new managers. 

 

Joining the leadership team is a great accomplishment, but it could also lead to the demise of a person’s career if not managed properly. 

It’s important to be able to recognize the right employee to transition into a first-time manager, but it’s crucial to help them become the skilled leader that the organization needs. But more than likely, these new managers won’t have all of the skills they need right away.

Even if someone is excellent at their job, being a new manager comes with an entirely new skill set. They are not just responsible for themselves anymore; they have an entire team to manage.

The biggest flaw when equipping new managers is the outdated protocol for transitioning positions within the company. 

When anyone is given a new position, they must go through the transition process of paperwork and assessments to assure that they are fully aware of what the job entails and what their new duties are within the company. 

Are charts and reports the proper training protocol? Or does this only confuse and lengthen the process of transitioning into a great new manager? 

 

            In order for performance reviews to be effective and accurately represent a product that is meaningful to the viewer, there needs to be more training for employees and new managers regarding the importance of performance reviews. 

            If new managers are properly trained on the importance of performance reviews, they will be able to conduct more effective evaluations and produce responses that they can work with, and build off of. 

            If employees are properly trained on the importance of performance reviews, they will continue to stay engaged and give honest feedback, knowing that it will be used for the betterment of their time at the company. 

            With proper training for both new managers and employees, new managers will be able to look at the performance reviews and analyze what needs to be changed and continue to benefit their direct reports and the company, overall. 

            

Challenges include… 

 

All in all, the key to new managers effectively leading their teams starts with proper training. The duties of a manager include much more than just understanding how to direct their employees in a certain direction of goals that the company aims to accomplish. 

In order for a manager to fully have an impact on their new employees and the overall change of the company, they need training in more than just the protocol transition charts.

Understanding how to effectively make an impact as a manager, make close connections with their new direct reports and emulate a positive workplace are all things that must be implemented into the new manager transition period. 

After the proper training to understand what the position entails and how the new manager can get creative with their new implementation to the job and the company, it’s important for the new manager to understand the performance review process. 

The performance review process should accurately portray evidence from employees of likes/dislikes/struggles/strengths within the company so that the manager can identify strengths, weaknesses, and goals for their team. 

So how can a company get the most out of its performance management? 

 

Performance reviews must deliver meaningful results 

            After you’ve properly trained your new managers, it’s your company’s job to provide your new managers with meaningful performance reviews to analyze. Meaningful reviews include honest feedback from employees; a product that your new manager can use to effectively lead their new team. 

            Traditional performance reviews lack meaning. Charts measure trends, but trends don’t tell a new manager how to make a difference, and how to best lead their new team. 

            Minimize the learning curve of new managers becoming effective leaders and use AIM Insights to conduct performance reviews. 

 

AIM Insights Performance Review SOLUTIONS include…