By Alexandra Zatarain

 

“Great bosses are the accelerator of high-potential employees. Bad bosses are the biggest decelerator. Bosses should be coaches and motivators”

Pepsi Bottling CEO Eric Foss

 

Recently we published a blog post on hiring the right talent. But HR departments know that is just the first step in a process of managing an organization’s human capital. Retaining the right talent is far more important.

A competitive paycheck is certainly not the only motivator for individuals to take on a job and stick with it. Data has suggested that “individuals are looking for more from their remuneration package than financial reward alone”

Maximize Employee’s Development 

Talented individuals will stay with companies where they feel their career has advancement opportunities. Management must think of different avenues of professional development which can include mentoring programs, networking events, cross-functional working opportunities, etc.

Individuals are also looking to develop transferable skills which they can take into other jobs. Some companies may question the risk of employees taking these skills elsewhere, but they should also see the benefits behind it. If an employer provides the opportunity for individuals to develop professionally they will increase productivity and attract and retain the best talent. If a company doesn’t provide these opportunities, talent will look for them somewhere else.

 

Consider an employee’s lifestyle

It’s becoming increasingly common for employees to care about flexible working or remote working options which can enable them to have quality personal time. There’s also a growing concern over the environment, and talented individuals are going for companies which have CSR programs in place and are environmentally friendly.

Recognize talent to build loyalty

Positive recognition motivates employees. According to Dr. Marilyn Manning, CSP, founder and CEO of The Consulting Team, generous recognition “reinforces the cultural values and even the purpose of the company”. Management should recognize success as it happens instead of spending all its time pointing out mistakes and problems.

A recent study quoted by The Consulting team, found that “the majority of talent leaving their companies felt unimportant, underutilized and not appreciated.”
These employees didn’t leave their job because of monetary reasons, but rather because they were feeling unappreciated on a daily basis.

 

Respect diversity of talent pool

The everyday workplace is becoming more diverse and culturally rich. Companies must know how to handle and use these characteristics to increase productivity. In a diverse group everyone will have a different communication style which can result in conflicts.

To determine an individual’s communication style, use a reliable measurement, like the DISC Personal Profile or Myers Briggs Indicator. A good assessment, if handled skillfully, can help you coach and work well with diversity.

Dr. Marilyn Manning

 

Build an attractive corporate culture

The best way to build an attractive corporate culture is through open and effective communication. In this way, people will feel welcome to express themselves with respect.

Also make sure that employees feel part of the planning and of any restructuring, changes, important projects that the company might engage in. This will boost loyalty and the sentiment of being an essential part in the organization.

Working in teams is highly attractive for talented individuals. Management should focus on committing the team to common objectives and striving for high quality results. Working in teams will increase motivation and create a shared vision among the staff.

 

Six tips for retaining talent (from USA TODAY interview with Pepsi Bottling Group CEO Eric Foss)

1. Most people quit because they feel underappreciated. Give talented executives stretch assignments.
2. It’s a myth that all fresh ideas come from new hires and that long tenure creates stale thinking.
3. Good bosses are what make good employees. Leadership is about coaching and having a “teachable point of view.”
4. Encourage disagreement among executives, but set up rules and make sure no one crosses the line of respect.
5. No development system compensates for a bad hire. When hiring, look for character and the confident look of a leader.
6. Don’t worry about those who leave. Focus on those who stay.

 

Ten things to avoid

According to Forbes.com, the following are the biggest and most common mistakes companies do which push away their top talent:

1. Having big company bureaucracy: giving no other option but to follow the rules will push away talented people.
2. Failing to find a project for the talent that ignites their passion: don’t just keep your talent around if there’s no attractive project for them at the moment.
3. Giving out poor annual performance reviews: this gives a bad impression to the employee, who will perceive that management isn’t really interested in his/her long-term future.
4. No discussion around career development: bosses should discuss succession planning or career development with employees. This will motivate them and grow the belief that there’s a path for them going forward.
5. Shifting whims/strategic priorities: management should give talented employees the opportunity to deliver, by making them work in long-term projects.
6. Lack of accountability and/or telling them how to do their jobs: “top talent demands accountability from others and doesn’t mind being held accountable for their projects”. Engage on regular checkups to see how their projects are turning out.
7. Surround top talent with not so talented employees: “if you want to keep your best people, make sure they’re surrounded by other great people”. 
8. No exciting company vision: the future of the organization should be exciting and employees must be guided into the activities management wants them to fulfill.
9. Lack of open-mindedness: talent must feel free to share their ideas and be listened.
10. Having the wrong management: employees don’t want to be bossed around by an annoying person or by someone they consider incompetent.

Hiring the right talent is the first step. But without appropriate measures to make sure talented employees will stay in the company, hiring efforts will be useless. Companies must execute proper assessments of the organization and human resources practices so a better environment can enable talent retention and lower turnover rates.

 

A recommended reading: “The Carrot Principle: How the Best Managers Use Recognition to Engage Their Employees, Retain Talent, and Drive Performance” by Adrian Gostick and Chester Elton

The Carrot Principle illustrates how ordinary organizations have made themselves extraordinary through the use of strategic employee recognition.