THE RETENTION FACTOR
What is the major reason people leave their jobs? No, it is not money, though appropriate compensation certainly helps attract and retain top talent. The primary reason given in ANONYMOUS surveys is simple: Difficulties getting along with one's boss. Talented, committed high potential employees from individual contributors to higher level executives leave their companies every day because they don't get along with their managers; Yet, this remains one of the most neglected realities in the business world today.
The relationship between a manager and his or her direct reports is critical and this is true at every level of an organization, in companies large and small. Yet the importance of these relationships to the overall strategy and resilience of a company is frequently overlooked. In many cases, managers are not even aware of the dissatisfaction present within their ranks. And unfortunately the costs associated with this oversight are tremendous.
Companies often put into place complex performance management or career development systems targeting performance, retention, succession-planning and employee development. These are important features of a strong company--they indicate the value and necessity of a strong leadership pipeline. Yet, many times these processes fall short. Why? Because they neglect the critical factor: the manager-employee relationship.
How many times have you seen this scenario ? One particular manager, whom everyone in the department or division recognizes is a poor manager, hires and rehires new staff all the time only to have them leave precipitously. It seems there are always "reasons" as to why it didn't work out---not the right fit, poor hire, personal rea
sons, under-qualified, etc. Human Resources conducts exit interviews but, unfortunately, exit interviews are biased. When leaving a company people rarely give the real reasons for leaving for fear of burning their bridges. They aren't necessarily comfortable discussing their "boss" problems. So relying upon the exit interviews to let you know what is really going on is insufficient.What is the answer? Is there any hope? I believe the solution is quite simple. Not necessarily easy, but simple. Companies need to pay much more attention to the Manager-Employee relationship. Managers should be evaluated in part on their people management skills. Some progressive companies are doing this, including tying performance bonuses to people development performance factors. This is taking the long view. High turnover is very expensive. So is the opportunity cost associated with losing potential A players.
Companies should help their managers to become better managers, coaches, mentors and leaders. This means giving them the time to do so. It means measuring their performance in attracting, hiring, retaining and promoting strong talent. It means helping them to become leaders who will inspire the trust needed to create engaged, committed and successful employees.