How to Keep Your Best Employee from Walking Away
Over the next few posts will we explore some of the toughest management challenges you’ll face: what to do when you've made a bad hire, how to handle a promotion that went wrong, and worst of all—losing your best employee.
Hopefully, you’ll never experience all three in a single week. But at some point in your career, you will face them all. So let’s focus on the toughest one: your Best Employee Ever (BEE) handing in their notice.
You sense trouble when your star performer asks to see you. It turns out to be worse than you expected. She hands in her resignation, giving you four weeks’ notice. How could this be happening? You’ve given her generous salary increases, incentives, and regular praise—even handwritten thank-you notes.
Employees Don’t Always Leave Because of Bad Bosses
There’s a popular saying: Employees don’t leave jobs, they leave bad bosses. While there’s some truth to this, it’s an oversimplification. Employees leave for a variety of reasons, and it’s not always about their immediate supervisor. This myth is often perpetuated by HR executives, perhaps as a way to shift blame from themselves for failing to create a culture that encourages retention.
A former colleague recently asked me why two senior managers had left a company while a third had stayed. Setting aside my personal views on their relative talent levels, it came down to opportunities. All three were based in Asia, while top management roles were in the U.S. To advance, they had little choice but to change companies.
In my experience, the leading reason employees leave is a lack of career progression.
Why Career Progression Matters More Than You Think
Switching companies is a gamble that doesn’t always work out, which is why the “boomerang employee” (one who leaves and later returns) is fairly common. But modern flat organizational structures make it much harder for employees to see a path forward.
When I started my accountancy career, there were four accountants in just one office of a British multinational. The number of layers between me as a junior accountant and the global finance director was unknown, but plentiful. Fast forward to when I retired in 2020 from a U.S.-based company—there were only five levels between a junior accounts receivable clerk in our Singapore office and the global CFO.
A flat structure makes promotions rare, and career blockers—employees who do an adequate job but stay put—clog up the system. The result? Talented employees leave.
What Motivates Employees to Seek Promotions?
Money is certainly a factor, but it’s not the only one. Here’s what really drives employees to seek new roles:
1. Job Satisfaction – Edwin A. Locke defined job satisfaction as “a pleasurable and positive emotional state resulting from the appraisal of one’s job experiences.” Employees want to feel their talents are being used effectively.
2. New Challenges – Employees see career progression as a way to challenge themselves. Without growth opportunities, disengagement sets in.
3. Confidence Boost – A survey found that 70% of employees lack confidence at work (79% of women, 62% of men). A promotion can provide a significant boost.
4. Financial Incentives – In many organizations, the only way to increase earnings is through promotion or changing companies.
Retaining Employees When Promotions Aren’t Possible
In today’s flat organizations, not everyone can be promoted when they feel ready. Some employees are ready, some will be ready with development, and some will never be ready—though they may think otherwise. Here’s how to handle each scenario:
1. Employees Who Are Truly Ready for Promotion
If you can’t promote them immediately, consider a lateral move. Done well, this can enhance an employee’s career. Done poorly, it can derail it.
? Start with a conversation about their career aspirations. Where do they see themselves within your company?
? Identify skills gaps. If they want to move into general management but lack marketing experience, a lateral move into marketing may be a good step.
领英推荐
? Ensure hiring manager buy-in. If the new manager resents the transfer, it’s unlikely to succeed.
? Keep salary expectations realistic. A small increase may be possible, but lateral moves aren’t typically big pay bumps.
Companies with a culture of lateral moves have an advantage, as employees see this as development rather than a step sideways.
2. Employees Who Think They’re Ready (But Aren’t Yet)
Take the time to explain why they’re not ready and create a plan to help them get there. Steps could include:
? Stretch assignments to build missing skills.
? Coaching and mentoring to address personality traits that may be barriers.
The key is genuine development. If an employee sees they are being groomed for the next step, they’ll likely stay. But if it’s all talk and no action, they’ll become disengaged and leave.
3. Employees Who Will Never Be Ready
Not everyone will climb the career ladder—and that’s okay. But they must feel valued.
? Recognize their contributions.
? Say thank you—often.
? Ensure your company culture makes them feel like an integral part of its success.
Retention Starts with Career Conversations
Studies show that simply taking an interest in your employees’ careers improves retention. Add actionable plans to that interest, and you have a formula for keeping your best people.
You may never need to lose your Best Employee Ever (BEE).
________________________________________
If you’re facing a retention challenge, I’d love to hear from you. With 35 years of experience across three continents, I’ve tackled most business challenges. Reach out, and let’s talk.
https://calendly.com/3-continents-consulting/open-discussion-how-can-i-help-you?back=1&month=2025-02
Not ready to talk but want to learn more. Listen to the original podcast at