The Employee Retention Champions

“People don’t quit their jobs, they quit their bosses” is a common cliché that you hear in a lot of management conversations. This sounds logical as a boss is the embodiment of the organization’s culture and the person who has the maximum influence on the team member’s career. It is also easy for me to relate to this as over the course of my career, I have worked with different bosses and they were the single biggest determinant of my decision to stay or leave the company. Now, while this makes sense, it is important to answer some of the questions around this topic to make sure this is not another of the many fads in HR.

1. Is there any scientific evidence around the impact of managers on retention of employees?
2. Aren’t there other reasons like money, location, personal reasons, etc. that impact the decision to stay or leave?
3. If the answer to the first questions is yes, then what behaviors of managers affect an employee’s decision?

Let’s start with the first question. Various psychology studies have noted that the way people are managed and the leadership style has a direct influence on an organization ability to retain their workforce. These studies have also highlighted that the way employees view an organization is particularly dependent on their relationship with their manager. Various consulting companies have also alluded to the fact that managers have a key role in an employee’s decision to stay or leave. 

Now that it is established that a manager plays a critical role in retention, let’s look at other factors like money, location, personal reasons, etc. Studies have highlighted that these factors have a role in employee’s decision to leave the organization but there is still no unanimous view available about them like in case of supervision and leadership. For e.g., some research says that job role, work-life balance and pay strongly correlates with the employee's decision to stay in the organization while others say they do not have a direct influence on retention.

Hence, it is quite clear that the common cliché - “People don’t quit their jobs, they quit their bosses” cannot be ignored and it is critical to understand characteristics of a manager that help retain talent in the organization. Given below are some of the common behaviors cited by different researches:

• Inspire Others – People today want to work on big problems that are important and create an impact. They want someone who can inspire them to pick up challenging initiatives by communicating a clear vision, setting up stretch goals and helping them achieve the same. It is a manager’s job to create a pull around the stretch goals – because when they accomplish it, something remarkable will happen. The leaders that are able to create this pull, create an atmosphere of enthusiasm and energy for every member of the team.
• Define a Clear Direction – We all need a clear direction about where we are headed and what needs to be done next. No wonder we all love Google Maps. A flaw in many managers is that they assume their team knows about the direction and how their work is linked to organization goals, so they don’t invest time in sharing the same. But research says that it is critical for a manager to continuously reinforce the overall direction of the team and the organization.
• Communicate Effectively – Effective communication is important in both professional and personal relationships. A lot of time personal relations fail because of this. It is not a coincidence that one of the top complaints in marriage counseling is the failure of spouses to share important information with each other. Same is also true for many managers as well. Managers need to prioritize communication of important information to every team member. Sometimes there is also no harm in over-communicating objectives, deadlines and congratulating on their successes.
• Resolve Conflicts – For a team to deliver successfully, it is important for them to work together. While there will be professional differences, it is important to resolve them quickly to remove friction. Managers must play the role of peacemaker and resolve internal conflicts in the team quickly, else they can have an effect on everyone in the team. In case this is not done, the impacted team members can also feel they are not supported by the manager that can impact their engagement.
• Build Strong Connections – To successfully manage a team, a manager must be aware of their team member’s individual needs and should try to balance them with the results expected from them. It is also important for the team to feel that the manager has their best interest at heart. Researchers say that building trust with the team members is the starting point of any strong relationship. Elements of building trust include credibility, reliability, intimacy and low self-orientation.
• Be Fair and Transparent: Another key element highlighted by research is being fair and transparent in all dealings. This fairness needs to be built in terms of rewards/recognition, allocation of work and treatment at work. The manager also needs to ensure that he/she is not using the available talent for his/her own personal needs. This is important because, once the feeling that something unfair has happened creeps in, engagement goes down and the risk of attrition increases.
• Help in Career Growth: Employees are like cyclists: When they stop moving forward, they fall over. Thus, managers who look for opportunities to develop their team, are much more effective in retaining them. Managers should invest time in understanding the career aspirations of their team and align new work opportunities accordingly. Another important element here is not to be a ‘nice person’ and share developmental feedback with the team to help them grow as that is what they are looking for.
• Act as a Role Model: Lastly is it important to practice what you preach. Managers need to set up the right examples for their team. For e.g., if they are asking a team member to spend extra time in the office or curtail cost, etc., they need to do the same. It is also important for them to show emotional maturity which includes managing their stress effectively and not letting it impact the overall team.

Failing on one or more of these characteristics can have a significant impact on the retention of employees. Hence it is critical for organizations to invest in assessing these capabilities in managers every 1-2 years and work towards developing them. After all, your best talent’s future in the organization can be at risk.