Retaining top talent is challenging, but it doesn’t have to be. Many of the mistakes companies make in this regard are avoidable. When these mistakes occur, it's often the best employees who leave first, as they have the most opportunities available to them.
Employee engagement is critical to retention. If you fail to keep your best employees engaged, you will struggle to keep them at all. While this may seem obvious, it is not as common as one might think. According to a survey by the Corporate Executive Board, one-third of high-performing employees feel disengaged from their employers and are already seeking new job opportunities.
When companies lose their top talent, it’s typically not an abrupt departure. Rather, their enthusiasm and commitment gradually wane over time.
1. Overly Restrictive Rules
Companies need rules to function effectively, but they don’t need to be overly restrictive or stifling. Rules should create order without being unnecessarily rigid or controlling. Excessive policies, such as draconian attendance requirements or confiscating employees' frequent flyer miles, can be particularly off-putting. When employees feel micromanaged, they are likely to look for work elsewhere.
2. Treating Everyone Equally
While treating everyone equally might work in a classroom, it is counterproductive in the workplace. If top performers are treated the same as those who do the bare minimum, it sends a message that excellence is not valued. High performers typically go above and beyond, and when their efforts are not recognized, they become disillusioned.
3. Tolerating Poor Performance
A company is only as strong as its weakest link. Tolerating poor performance can drag down the entire team, especially high performers. Just as a jazz band is judged by its worst player, a company is judged by its weakest employees. Allowing subpar performance to go unchecked demotivates top talent, who may decide to seek an environment where excellence is recognized and rewarded.
4. Failing to Recognize Accomplishments
Acknowledging accomplishments, especially for top performers, is essential. While high performers are often intrinsically motivated, they still appreciate recognition for their hard work. A simple pat on the back or a public acknowledgment can go a long way. Managers should understand what motivates their employees—be it financial rewards, public recognition, or career advancement—and ensure they are rewarded accordingly. Regular recognition of top performers is crucial to keeping them engaged and motivated.
5. Lack of Empathy and Human Connection
Over half of employees who leave their jobs cite their relationship with their boss as the primary reason. Successful companies ensure that their managers strike a balance between professionalism and empathy. These managers celebrate successes, offer support during tough times, and challenge their employees to grow. When managers fail to show they care about their employees as individuals, turnover rates inevitably rise. It’s difficult to work for someone who is solely focused on output and shows little interest in their employees' well-being.
6. Not Communicating the Big Picture
Simply assigning tasks without providing context can be a deal-breaker for top performers. High achievers often carry a heavier workload because they care deeply about their work. Without understanding how their tasks contribute to the larger goals of the company, they can feel disconnected and unmotivated. When employees are not given a sense of purpose, they will eventually seek it elsewhere.
7. Stifling Passion Projects
At Google, employees are required to spend at least 20% of their time on projects they believe will benefit the company most. This policy has led to the creation of major products like Gmail and AdSense, but its greatest impact is in fostering high levels of employee engagement. Talented employees are passionate about their work, and when given the opportunity to pursue their passions, their productivity and job satisfaction increase. However, some managers resist allowing employees to explore their interests, fearing it will reduce productivity. This fear is misplaced; studies show that employees who can pursue their passions at work enter a state of "flow," a highly productive and fulfilling mental state.
8. Neglecting to Make Work Fun
A workplace devoid of fun is a missed opportunity. When employees don’t enjoy their work environment, they are less likely to give their best effort. Fun at work also serves as a buffer against burnout. Leading companies understand the importance of incorporating fun into the workplace. Google, for example, goes to great lengths to make work enjoyable, offering free meals, bowling alleys, and fitness classes, among other perks. The rationale is simple: when work is fun, employees are more productive, willing to stay longer hours, and more likely to build long-term careers with the company.
Bringing It All Together
Managers often attribute turnover to external factors while overlooking the root cause: people don’t leave jobs; they leave managers. Addressing the issues highlighted above can significantly improve employee retention. Engaged, valued, and motivated employees are more likely to stay, and ultimately, it is the responsibility of management to create an environment where top talent can thrive.
