Retention Strategies Series: Identify the root cause, not just the symptom

The issue is not always the issue

As a consultant who specializes in employee retention, I've seen many companies struggle with retaining their top talent. One common mistake I see companies make is assuming that the issue with retention lies solely with compensation or benefits and their only retention strategy is to "throw" money at people hoping that they will stay. While these factors do play a significant role in employee retention, the issue is not always the issue. Often, there are underlying factors that affect employee retention that need to be addressed to improve the situation.

In this article, I'll discuss the importance of discovering the underlying factors that affect retention, the top 5 reasons why people leave organizations and offer five strategies with actions to take to improve it.

The Importance of Discovering the Underlying Factors

Before taking any steps to address retention issues, it's important to understand the underlying factors that are contributing to the problem. These factors can vary widely depending on the company and the industry, but they may include poor management, lack of career growth opportunities, a toxic work environment, poor work-life balance, or a lack of recognition and appreciation. Without addressing these underlying factors, efforts to improve retention will likely be ineffective or short-lived.

The Top 5 Reasons Why People Leave Organizations

Depending on your sources of information the results may vary, and below are the average Top-5 reasons why people leave, based on a data comparison between Forbes, SHRM, Indeed, and our clients.

1. Poor Management: One of the top reasons people leave an organization is due to poor management. Employees want to feel supported and encouraged by their managers, and if they feel undervalued or unsupported, they are likely to seek employment elsewhere. This, at times, is due to the lack of leadership development opportunities for newly promoted supervisors/managers which then, is reflected in their performance.
2. Limited Career Growth/Development Opportunities: Employees want to feel like they have opportunities to grow and advance in their careers. If they feel like they have hit a ceiling at their current organization, they may start looking for opportunities elsewhere.
3. Toxic Work Environment: A toxic work environment can be a major factor in employee turnover. Employees want to feel safe and respected in their workplace, and if they feel like they are constantly being mistreated or disrespected, they may start looking for employment elsewhere. Organizations that choose to keep toxic employees, because of their fear of an open vacancy, will witness the detrimental effect on retaining top performers.
4. Poor Work-Life Balance: In today's fast-paced world, employees value work-life balance more than ever. If they feel like they are constantly working long hours and not getting enough time to spend with family and friends, they may start looking for opportunities elsewhere that offer a better work-life balance.
5. Lack of Recognition and Appreciation: Employees want to feel like their hard work and contributions are being recognized and appreciated. If they feel like their efforts are going unnoticed, they may start looking for opportunities elsewhere that offer more recognition and appreciation.

Five Strategies with Actions to Take to Improve Retention

1. Conduct Exit/Stay Interviews: One of the most effective ways to discover the underlying factors affecting retention is to conduct exit or stay interviews with employees who are leaving or remaining with the company. These interviews can provide valuable insights into the motivating reasons why employees decide to stay or leave the organization, as well as suggestions for how the company can improve retention.
2. Offer Competitive Compensation and Benefits: While compensation and benefits are not the only factors that affect retention, they are still important. Companies should ensure that their compensation and benefits packages are competitive with other organizations in their industry.
3. Improve Management Training: To address poor management, companies should invest in robust management training programs that focus on at least communication, conflict resolution, and employee engagement. These programs can help managers to develop the skills they need to effectively lead their teams and create a positive work environment.
4. Offer Career Growth Opportunities: To address limited career growth opportunities, companies should offer training and development programs, mentorship opportunities, and clear career paths. By providing employees with the tools and resources they need to grow and develop professionally, companies can improve retention rates and build a strong and loyal workforce.
5. Foster a Positive Work Environment: To address a toxic work environment, companies should prioritize employee well-being, promote work-life balance, and foster a culture of recognition and appreciation. This can include offering flexible work arrangements, providing wellness programs, and implementing an employee recognition program.

While compensation and benefits are important factors in employee retention, the issue is not always the issue. To improve retention rates, companies must first discover the underlying factors that affect retention and then take action to address them. By conducting exit interviews and employee surveys, improving management training, offering career growth opportunities, and fostering a positive work environment, companies can create a workplace culture that supports employee retention and attracts top talent.

Reach out to us here at Learning DNA either through email at [email protected] or visit us at www.ldnaglobal.com for more information or consulting support on these topics.