How would you feel about a lower attrition rate in your organization? Employee retention is without a doubt one of the most intense challenges most companies are facing today. With the growing economy and talent crunches due to opportunities,technology, globalization, rise of the knowledge worker, Millennials ( that are notorious for job hopping ) becoming a larger percentage of the work force, retention rates promise only to get more difficult to contain. Already, turnover rates for all industries hover around 13%, the rates are higher in the service sector, where the average turnover rate is 30%. There are more that 1500 different research studies being done in this area. For those interested The Turnover and Retention Research by Georgetown University can give you more information.
While there are many theories on improving employee engagement and reducing attrition, I have a very simple suggestion based on the following paradigm:
People Leave Managers, Not Companies.
This mid section of the organizational pyramid is often ignored in terms of developing leadership. Really developing Leader Managers is the need of the hour in the current economy to improve retention rates. Skilling them with leadership competencies of first leading self, then developing others is what will really help in retaining people. What this entails is building personal values and visioning capabilities to be able to lead self. Coaching competencies of active listening, powerful questioning, direct and clear communication, less judgement and believing in the potential of their people. To get to the intrinsic motivators of the people, managers must spend time and make it their priority. Just going for happy hour outing and team get together is not enough.Of course the organization culture has to support this and not just through lip service. The organization must intensely go after this strategy starting with the HR and senior leadership level stakeholders. One way to do this is to reward the managers that build the connect with their people and nurture them. Putting their managers through an ongoing leadership development program is key. Of course several other complementary and supporting initiatives will be prioritizing employee happiness, hiring the right people,clean up performance reviews, create opportunities for personal development and growth and above all inculcate a sense of generosity and gratitude.