Retention- How Business Owners and Leaders value their Senior Managers

I was recently looking through an old hard drive and came across some documentation for a company that I had worked for many years ago now. The documentation was a “Recruitment and Retention Policy”.

So, what’s significant about that and why did it frustrate me?

It was a business that grew from a small regional security company with about 5 employees, winning contracts, growing to a multi-national, multi-million-pound business employing over 300 staff.

On the face of it a great success. However, beneath the surface was a culture of treating senior managers with disrespect, showing a lack of appreciation and acknowledgment of their experience and knowledge and created a culture of the feeling undervalued by the directors.

The owner directors approach was to focus on the new "shiny" staff and managers, new "shiny" projects and new "shiny" ideas. This alienated their existing loyal, long-term assets.

So, what happened to those senior executives and more importantly, what happened to that business?

No surprise, over a short period of time many of them left the business taking employment at other businesses who valued them or started their own business.

The business itself filled those gaps with new managers and all too late the directors realised that they were having contracts stolen, deals done behind their backs and eventually the business went under. Those new staff and managers saw opportunities for themselves and took them, there was no loyalty to the company or owners.

As a business experiencing growth and prosperity, my thoughts were drawn to how we at Minerva retain senior managers and executives within the business. We have a culture of trying not to be dazzled by the new "Shiny" opportunities, contracts and people that present themselves, but to apply a more critical and risk based approach

When a business grows rapidly, it's not uncommon for key senior managers to feel overlooked, undervalued, or disconnected from the organisation's core operations and decision-making processes. This situation can have several negative impacts on both the managers and the business itself. The growth phase of a company is a critical juncture where the experience and leadership of seasoned managers can be most beneficial, both in navigating challenges and in seizing new opportunities.

Here's my views on the potential consequences and strategies to mitigate such issues, I’d welcome your thoughts and experiences:?

Impacts on Senior Managers

Feeling Undervalued: Senior managers may feel that their past contributions are forgotten or taken for granted as the focus shifts to new projects, personnel, or external consultants.?

Lack of Engagement: Without proper recognition and opportunities to contribute to critical decisions, these managers might become less engaged with their work, leading to decreased productivity and satisfaction.

Reduced Loyalty: Feeling side-lined can diminish loyalty to the company, making senior managers more open to offers from competitors or other opportunities outside of the organisation.

Decreased Morale: The perception of being forgotten can lower morale, not only for the senior managers themselves but also for their teams, affecting overall workplace atmosphere and performance.

Loss of Institutional Knowledge: If overlooked senior managers leave, they take with them valuable institutional knowledge and experience, which can be costly for the organisation to replace.

Lack of Communication

A lack of communication from business leaders and a change in corporate culture are significant factors that can drive senior managers to leave a business. These elements play a critical role in shaping an individual's experience and satisfaction at work.

Uncertainty and Insecurity: When business leaders do not communicate effectively about the organisation's direction, goals, or changes, it creates uncertainty among senior managers. This lack of clarity can lead to feelings of insecurity about their roles and the future prospects of the company, pushing them to look for more stable opportunities.

Feeling Undervalued: Effective communication includes recognition and feedback on performance. Without it, senior managers might feel undervalued or overlooked, diminishing their engagement and commitment to the company.

Misalignment with Company Direction: A lack of communication about strategic decisions can result in a misalignment between the senior managers' efforts and the company's direction. This misalignment might lead to frustration and disillusionment, especially if they feel their contributions are not contributing towards the company's success.

Decision-Making Isolation: Senior managers expect to be involved in strategic decisions. A lack of communication from top leadership can isolate them from the decision-making process, making them feel disconnected and less invested in the company's future.

Change of Culture

Misaligned Values: A shift in company culture that moves away from the values and principles that initially attracted senior managers can create a disconnect. If the new culture clashes with their personal values or professional ethics, it may prompt them to seek a better-aligned environment elsewhere.

Loss of Community: Culture is integral to creating a sense of community and belonging. Changes that disrupt this community—such as shifts towards more competitive practices or away from a collaborative environment—can reduce job satisfaction and loyalty among senior managers.

Decreased Autonomy and Creativity: A cultural shift towards micromanagement or rigid structures can stifle creativity and autonomy. Senior managers, often accustomed to having the freedom to innovate and lead their teams, may find this environment constraining and look for opportunities that offer more independence.

Erosion of Trust: Rapid or poorly communicated cultural changes can erode trust between senior managers and the organisation's leadership. Trust is fundamental to effective leadership and teamwork; once it's lost, it can be challenging to rebuild, leading managers to exit the organisation.

The core issue revolves around the human need for clarity, respect, and alignment with personal and professional values. Organisations that recognise and address these needs through effective communication and by nurturing a positive, inclusive culture are more likely to retain their senior management and staff at all levels.

So how do we combat these challenges?

Strategies for Inclusion and Retention

The decision for a senior manager to remain with a business is influenced by a variety of factors that contribute to their job satisfaction, engagement, and loyalty. Here are several fundamental reasons why senior managers choose to stay:

Career Development and Growth Opportunities

Professional Growth: Opportunities for continual learning, skill development, and professional advancement encourage senior managers to stay. They value the chance to grow within the organisation and to take on new challenges.

Clear Career Pathways: Understanding how they can progress within the company, including promotions and expanded responsibilities, makes senior managers more likely to remain engaged and committed.?

Positive Company Culture

Alignment with Company Values: A culture that aligns with their personal values and where they feel their work is meaningful can significantly influence a senior manager's loyalty.

Inclusive and Supportive Environment: A workplace that fosters inclusivity, respect, and supports a work-life balance is attractive to senior managers. Feeling part of a community where their contributions are recognized and valued is key.

Respect and Recognition

Recognition of Efforts: Acknowledgment of their hard work and achievements, both publicly and privately, makes senior managers feel valued and motivates them to continue contributing to the company.

Respect from Leadership and Peers: A culture of mutual respect, where senior managers are appreciated for their expertise and experience, encourages them to remain with the company.

Effective Leadership and Management

Strong Leadership: Confidence in the company’s leadership and the direction in which the company is heading can significantly influence a senior manager's decision to stay. They look for transparency, vision, and integrity in the company's leaders.

Autonomy and Trust: Being trusted to take strategic decisions and having autonomy in their role without micromanagement fosters a sense of ownership and satisfaction among senior managers.?

Work-Life Balance

Flexible Working Conditions: The ability to balance work with personal life, including flexible hours, the option for remote work, and generous leave policies, is increasingly important for senior managers.

Support for Personal and Family Needs: Understanding and support from the company regarding personal and family commitments can greatly impact a senior manager’s loyalty and satisfaction.?

Impact and Engagement

Making a Difference: The opportunity to make a tangible impact through their work, shape the company's direction, and lead their teams towards achieving significant goals keeps senior managers engaged and committed.?

Engagement with the Company’s Mission: A strong connection to the company's mission and goals can foster a deep sense of loyalty and purpose, encouraging senior managers to stay.

So how do we retain loyal, experienced, and valuable senior managers?

Regular Communication: Ensure consistent and transparent communication channels are open, allowing senior managers to stay informed and engaged with the company's growth and direction.

Recognition Programs: Implement recognition programs that highlight the contributions and achievements of senior managers, helping to reinforce their value to the organisation.

Career Development Opportunities: Offer opportunities for professional growth and development that align with the company’s growth, such as leading new projects, professional training, or a clear path for advancement.

Inclusion in Strategic Decisions: Involve them in strategic planning and critical decision-making processes, leveraging their experience and insights for the company's benefit.

Feedback and Listening Sessions: Hold regular feedback and listening sessions to address their concerns, aspirations, and ideas for the company’s future, making them feel heard and included.

Maintain Company Culture: As businesses expand, maintaining the core company culture becomes challenging. Efforts should be made to preserve the aspects of culture that originally attracted key managers to the company.

By actively engaging with and valuing key senior managers, companies can not only retain these vital employees but also ensure their continued motivation and contribution ensuring the continued growth and success of the organisation.

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