Retention means keeping your stars. It is perhaps the most important step in your growth strategy.
You have invested time and money in finding the right people for your organization. But that is only half the task. Now the real work begins - engaging and keeping the high performers.
High performers generate up to 67% more in revenues than average performers. An investment in them is an investment in your company. This investment shows up in a company’s financials as a cost. Too often the benefit of your retention strategy is lost without digging deeper.
An organization that is losing people with good contribution potential is simply
a farm team for organizations that can cherry pick for good people.
The costs associated are sometimes not obvious without some analysis but commonly can be found in the following areas:
- External and internal recruitment costs
- Orientation, training and retraining
- Contributed executive time
- Opportunity costs lost through client opportunities
Effective retention strategy is not just about being a empathetic and thoughtful chief executive with staff - providing creature comforts and goodies. Surveys tell us that high performers appreciate the obvious perks but there is no replacement for a job that challenges and engages the individual on several different levels.
There are the basic principles –
- Performance standards
- Motivation programs
- Reward and compensation
Move to the next level by infusing meaning and purpose into people’s jobs. Ensure that the work is intrinsically motivating by understanding what a star’s values are.
- Cultivate a sense of community – people need others for learning and support
- Share core values that are admired by the broader community
- Involve people in the Strategic direction of the company
Just like in the professional sports arena, potential free agents are initially lured and then kept through a perception of a winning team. Star performers like to work with other star performers. Executive attention to an effective retention strategy can make a significant contribution to year over year results.
When good employees are retained, productivity and innovation increase as you climb the ladder together rather than putting productivity on hold as you step down a rung or two to get new employees up to speed. By retaining your best and brightest, you will reduce expenses while you make faster progress toward increased market share and organizational effectiveness.