It can be surprisingly hard to retain a valued employee.
In my role as an executive coach and leadership development consultant, I come across skilful, high-performing leaders who are not engaged in their work and looking for other opportunities (There’s probably a reason why my most-read blog is “What to do when you’re being sidelined at work”!)
I also come across leaders who regret losing what they see as valued team members, and often, in exit interviews, the reasons for leaving surprise them.
Sometimes the employee has felt undervalued, underappreciated or stuck in their role with nowhere to progress. Sometimes their day-to-day tasks feel disconnected from the organisation’s mission, and they’ve lost the sense of meaning that once kept them engaged. Sometimes, there is disengagement because the employee isn’t clear about how they are performing and has lost their confidence as a result.
They’re leaving not because they’re not in the right role or organisation, but because the story they’re telling themselves about it is negative - and crucially, no one is helping them rewrite it until it’s too late.
What is the main failing of leaders in this situation?
A lack of communication.
There is a mismatch in expectations and perceptions of performance and potential for progression. Silence tends to lead to assumptions, and often those assumptions will be negative ones.
So how can you retain a valued employee?
Have regular check-ins with your team members. This isn’t about the particular task or project they’re working on (though have those too!). They’re about wellbeing, aspirations and career progression. Demonstrate your interest and that you are there for them. Monthly is usually a good frequency, but quarterly might be better if it’s a stable environment and an experienced employee.
Spot any signs of early disconnection. Usually, employees will disengage before they leave - this may look like quiet withdrawal from team activities, or a lack of initiative and proactiveness. Act, show interest and ask how they are doing.
Share possible career paths, even if the employee may not be ready just yet. Employees can’t stay committed to a future they can’t see. Communicate these paths clearly and transparently - what do you need to see from them before they can make the next move upwards? Even if promotion isn’t on the cards for a while, what other milestones can they aim towards on the way?
Give clear, balanced and constructive feedback on performance. I’ve seen so many painful situations arise because team members were not aware of where their performance fell short of the required standard. Conversely, I’ve also seen some real turnaround stories, where an underperforming employee was kindly but firmly told why they weren’t making the grade, and with support, went on in the same organisation to do great things.
Give frequent thanks and recognition - this should be on impact and not just output. People need to feel that their specific contributions matter, not just that they’re part of a high-performing team. Without that, they assume their effort is invisible. Tailor recognition to the person - not everyone wants public praise. This includes recognition when things are tough, acknowledging that you have noticed, understand, and will support.
The cost of replacing an employee has been thought to be as high as £30,000 in some cases. And, in some recent research I conducted with smaller to medium-sized organisations, nearly 40% identified staff retention as one of their three most significant talent issues. (You can download the report here.)
In which case, can you afford not to retain your valued employees?
If staff retention is one of our current headaches, there are several ways I can support both your leadership team and your staff members. Get in touch to find out more or sign up to receive tips and guidance on how to evolve your personal leadership journey.