As a leader why should you even bother to worry about retaining your staff? If someone resigns from your team, you can always hire someone else? Hmm, with this thinking, I would question if you are a leader of any sorts, never mind a great leader.
As a great leader why should you think seriously about retention?
- Well firstly recruitment is costly, very costly and I am not simply talking about the cost of a recruitment fee here. A report carried about by Oxford Economics revealed that replacing a member of staff incurs costs of over £30k per employee.
- Secondly, recruiting is darn time consuming and it is estimated that HR Directors spend 28 days on recruitment processes.
However, there are far more important impacts to consider when you lose someone from your organisation.
It impacts you and your staff – significantly!
- Decreases in staff morale
- Negatively impacts on productivity
- It is not uncommon for more unhappy members of staff follow suit once someone resigns.
- Intellectual capital is lost when someone exits your business
- You have to recruit and retain a new team member, leaving your own personal work uncompleted and robs you of time that you could be spending developing and supporting your team.
So how do great leaders retain amazing people?
- Know that creating a team where employees value their own work will help gain a competitive edge on competition.
- Boost productivity, morale and involvement in order to create a place where people want to work.
- Know that supporting employees, empowering them and progressing their careers is a bigger motivator than financial rewards.
- Build great relationships with their team and create strong rapport, which in turn makes individuals feel connected and part of the team. Understanding people on a personal level increases this bond; finding out about their family life, personal challenges and their goals. Stronger rapport and trust leads to more accountable and engaged employees.
- Value each person and the individual contribution that they bring and clearly demonstrate how that person’s work has contributed to the overall strategy and goal of the organisation. Great leaders ask each team member how they can make their job easier, they find out what support individuals need to ensure employees can make a contribution and a real difference. As a result you are demonstrating to that person that you simply cannot do the job without them and employees who feel this level of connectedness are far less likely to resign.
- Communicate with their team. Lack of communication demotivates people and employees become disengaged. Managers can become too “busy” to share updates or provide feedback and employees at all levels want to hear from you. Lack of communication is a major reason that great employees quit and join your competitors.
- Ask for input from the team, this is a brilliant want to demonstrate that you value their ideas. Better still great leaders help employees grow their ideas.
- Never stop developing their employees. Doing work people enjoy and are good at drives engagement and retention. Look at the strengths and weaknesses of your team and asses how you can enhance those skills further.
- In addition to training, great leaders create opportunities for people to develop their career without having to wait for promotional opportunities. Employees need to clearly see that they can develop their career in your organisation without having to leave and join your competitors to do this. No one wants to work in a dead end job and Gallup report 87% of employees worldwide are not engaged and employees who are engaged are 59% less likely to look for a job with a different organisation in the next 12 months.
- Know that employee disengagement is costly. Hay Group Research shows that employee disengagement costs the UK £340bn every year and is reported that only 15% of UK workers consider themselves highly motivated with 24% admitting to coasting and 8% completely demotivated with only 17% reporting they they have their dream job.Great leaders know that simply managing a team is not enough. Great leadership is about looking for the potential in their talent and don’t simply focus on their current performance, they don’t manage, they lead and better still they coach!
About the author
Helen Walker is founder of York-Walker focusing on Executive leadership, Career & Transformational Coaching. My aim is to unlock people’s potential and maximize their performance, creating outstanding leaders who inspire, motivate and increase business performance and realise big organisational improvements.
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