Tackling Turnover: How to Retain Your Top Talent

In today’s ever-changing workplace landscape, employee loyalty continues to wane, hitting its lowest point in nine years. With 51% of employees watching for or actively seeking a new job, employers need to act fast to retain their best. Before you jump to blame, lose hope or long for the “good old days”, join us as we explore why employee loyalty is low, what is causing employee loyalty to continue to dip, and what you can do to boost loyalty in your team.

Employee Turnover: Current Trends

In a recent Gallup study, “42% of Employee Turnover Is Preventable but Often Ignored” by Corey Tatel and Ben Wigert, employees were asked, “To what extent are you currently looking for a different job than the one you have now?” The news isn’t tasty. Fifty-one percent said they were watching for or actively seeking a new job.?

This trend, although alarming, is not surprising. We have been talking about the changing values and views employees have towards their workplaces, especially among the younger generations who recently entered the workforce. Our take on it is this: we do not have a whole generation of disloyal, entitled, and uninvolved younger workers. On the contrary: they are craving connection and meaning.?

Who among us in our early career didn’t have high hopes of meaningful contribution? Even if the J.O.B. has ground us down, we shouldn’t sit back, roll our eyes and think, “You’ll see soon enough…” Yikes!?

It’s not a bad thing that people want more and are willing to vote with their feet if they’re not engaged. Do you want someone who is apathetic taking up space where someone else can bring their A-game??

Newer workers are not afraid to expect more from their direct supervisor, peers, and employers – and they should! Why? This simple fact:

We spend the majority of our waking hours at work; it should be a place where we feel respected, connected and appreciated.?

When those things are missing, people’s loyalty and commitment dwindle. Then, when a better offer comes up, people jump ship.?If they can’t find?respect, connection or appreciation in one place, they will look for it in the next.

Maybe disloyalty is a rally cry. Just like how we don’t fix the roof until there is a leak, and we usually remember to pack the snowbrush after the first snowfall, it’s human nature to only focus on fixing issues after they have arisen. And disloyalty is a sign that we need to address an issue that exists that we maybe didn’t realize how serious it was until now.?

The Financial Impact

Does all that sound fluffy? Okay, let’s put our money where our mouth is.

Turnover is not only a time-consuming, morale-busting, stress-inducing problem, it’s also a huge financial burden on organizations. The cost to replace an employee varies depending on factors like their role, tenure, industry, etc. The standard estimates, according to Gallup, are:

• 200% of salary for leaders and managers
• 80% of salary for professionals in technical roles
• 40% of salary for frontline employees

These include lost productivity, training costs, and the additional burden placed on the remaining staff. When a key person leaves, the ripple effects can disrupt team dynamics, slow down projects, and erode “institutional knowledge” (HR speak for knowing what the heck is happening around the place!)?

If you’ve ever had to pick up the slack for someone, scrambled to figure out where something is, or lost an afternoon sourcing an answer just because someone wasn’t available (temporarily or permanently), you’ll have felt the cost firsthand of that person’s knowledge being AWOL.

The true cost of turnover is far-reaching, impacting morale, customer satisfaction, and ultimately, the bottom line.

If you’re curious to know what the number looks like for your organization, we have created a calculator. Check out our Cost of Turnover tool here .??

Curbing Voluntary Exits

Here’s the good news: people don’t want to leave. Among those who left their positions voluntarily,42% said their manager or organization could have done something to prevent them from leaving.?

Of those who voluntarily left their roles, 45% report that neither a manager nor another leader proactively discussed their job satisfaction, performance or future with the organization with them in the three months before leaving. I don’t know about you, but if I felt like my work wasn’t making a difference, wasn’t important, or I was doing something wrong, I would have been out the door long before the three-month mark.

Among those who did engage with their manager or leader within the 3 months before leaving:

• 29% had a conversation about the future of their career with the organization
• 28% had a conversation about their job satisfaction
• 18% discussed what it takes to be effective in their job
• 17% discussed what it would take for them to stay with the organization.

So, what does this data tell us? Direct supervisors play a huge role in retaining employees. And it isn’t difficult! With the right conversations between the right people, voluntary turnover can be cut nearly in half.?

We’ve said it before and we’ll say it again: we need to be adopting a practice of conducting Stay Interviews . Whether it’s one question at a time or building a whole process (possibly replacing exit interviews ), one of the ways to catch these issues early and co-create solutions while someone is invested in staying is by understanding why they chose the team, organization and industry. Doing more of what works, as we promote as solution-focused practitioners, is way easier and more rewarding than reacting to problems and fixing what’s broken.

You can download 25 Stay Interview questions here . No time like the present!?

What Could Have Retained Employees?

Given that 42% of employees reported their manager/leader could have done something to prevent their exit, Gallup asked employees what specifically could have been done. Here’s what they said…

Compensation and Benefits

Not surprisingly, “Additional Compensation/Benefits” was the number one cited answer at 30%. Now you may be wondering, wait, haven’t you shared before that MIT Sloan Management Review found that people are 10 times more likely to leave a job for the same or less money if they’re being bullied? Sure, if you have to withstand toxicity, of course, money may take a backseat to your mental health. When all things are created equal, life is expensive! So, of course, it matters.

Now, you may feel like this is a losing battle, especially for my non-profit friends. However, closely related to that, 11% of employees cited “Career Advancement” as an action their managers could have taken to prevent their exit. Giving folks opportunities to take part in professional development in-house, at conferences, advantage degrees, and more could be part of your total compensation approach.

Fair pay tends to be a minimum requirement to retain top talent. If only we didn’t have mortgages to pay and groceries to buy! However, conversations around career development and advancement show employees they have something to work toward. In other words, it allows the compensation horizon to get elongated; would you rather work here now even if you don’t make as much in this role with the potential to have even greater earning power, influence and opportunities? Well, you might find folks take that long-range view, as long as you co-create it with them.

So, we invite you to consider this: compensation may not come immediately, but knowing that their work is valued and meaningful and that if they continue to work hard, they can expect opportunities for advancement (that comes hand in hand with a pay raise) would make many far more committed to their role and organization. Let’s not let your belief in their incredible potential be the best-kept secret from them!

Interpersonal Relationships

Prevent future turnover by fostering strong interpersonal relationships now. Among voluntary leavers, 21% said their departure could have been prevented by more positive interactions with their direct supervisor, and 8% said by fewer negative interactions with them. Add to this what we said about healthy dynamics with teams and it’s pretty clear that connection can be a deal breaker.?

People need to know they are more than just a number. Everyone deserves to be treated as more than a transaction.

We all want to feel valued, know our work matters , and know we matter to the people we work with. It doesn’t take much to do this. Having one short conversation a day, acknowledging effort, asking about how someone is doing, setting goals, and collaborating on work?all lead to employees being four times as likely to be highly engaged.?

If you believe your work matters to someone else, you’ll do more of it. People work to prove you right, so why not recognize? What gets appreciated gets repeated. And that builds not only connective tissue but also higher performance all around.

Removing Barriers

The third key area Gallup found that could have prevented voluntary turnover was removing barriers to effective performance. Among those surveyed, 13% cited organizational issues, and 9% improved staffing/workload/scheduling as ways their organization could have prevented their exits.?

Here at Greatness Magnified, we are obsessed with creating processes that reduce duplication, rework, and miscommunications. We don’t get it perfect every time, but it sure is nice to get to inbox zero every day (yes, it is possible!).

Here’s the thing: when people face organizational challenges and workflow issues that prevent them from fulfilling their duties—such as outdated processes, inconsistent feedback, or insufficient staffing—it becomes frustrating. It takes up time and energy from what really matters – customers, innovation, completing projects, bonding!?

If someone raises a concern about barriers, they need to feel the issue is heard, even if it cannot be addressed immediately. We hear all the time after a speech Sarah delivers that people feel shut down when they raise issues, and that to them is the opposite of recognition. And it is! They tell us it makes them feel as though their work isn’t important or their concerns don’t matter. And that’s exactly what Gallup’s research found too.

By actively listening and responding promptly to concerns, managers and leaders not only help remove the barriers to effective performance but also foster a sense of trust between themselves and their employees. And if giving and receiving feedback is tough for you, you may be interested in this course that can help with some very handy, easy and memorable tools.?

Reducing Employee Turnover

It all boils down to this: everyone needs to know they matter. Three months without a meaningful conversation with a direct supervisor is far too long. When employees feel like just another number, it’s easy for them to jump ship. When they don’t know if their work is valued, they don’t feel connected to anyone in the organization, and they haven’t had a meaningful conversation with their leader in months, there’s nothing tying them to the organization.

When employees feel seen, heard, and valued, they are more likely to stay and contribute to the team and organization’s success. Building a culture of recognition, open communication, and support is essential in tackling turnover and retaining top talent. It’s time to take action and make every interaction count.?

We’ve created a great new infographic for you to download and print to help you tackle turnover and retain your top talent. CLICK HERE or on the image below to download.

Can we help you tackle turnover and create unrivalled cultural resilience? Connect with us. [email protected]

Feast on these previous articles to learn more about how you can retain your best and brightest:

• Sussing out Blame, Shame and Scapegoating: Repairing Relationships to Recognize and Retain the Best
• Attracting and Retaining Young Employees: Is Pet Insurance Next?
• Remote Work: Why We Can’t Rule it Out to Retain the Best