Leadership as a Talent Retention Tool

Copyright (c) 2008 Gayla Hodgesmembers are saying; but it could also reflect an
The way you treat people is one of the mostunwillingness of senior management to make
important factors in your company's ability tothose resources and opportunities available.
keep the talent you want and need to make yourLeaders and managers each see the workplace
business successful. You as a manager, as afrom a unique perspective. Executive leaders are
leader, may be one of the most important talentlooking at the biggest overall picture from the
retention tools your company has. And rememberorganizational level and with an eye to external
the key to retention success: People don't leaveimpacts. Middle-level managers are looking at the
corporations, they leave bosses.bigger picture from an operational standpoint.
There has been a lot of discussion and study inFront line managers view the workplace from the
recent years about why people leave jobs.actual functional, nuts and bolts operational point
According to the U.S. Department of Labor andof view. This means it is the front-line manager
the Bureau of Labor Statistics, the number ofwho is in the best position to evaluate what
people who quit jobs (instead of being fired, laidemployees need in order to do their jobs
off or downsized) accounts for 42-63% of allproficiently. They must then effectively
people who leave jobs in a given year. Thiscommunicate those needs up the ladder to
represents a lot of talent leaving corporations.ensure that all reasonable needs are met.
Some leaders are content to glance over anThe front line manager also must be the person
internal exit interview and conclude that thewho knows each employee well enough to
valued talent is walking out the door becauseunderstand the working environment in which the
other companies are offering better salaries oremployee can succeed. Leadership skills become
benefits packages or because someone elsecritical in working between employees and upper
offered them a chance to advance or domanagement to create the environment needed
something different.for success. This might mean managing resources,
External exit interviews and independent researchit might mean working with flexible scheduling, but
tell a different story. Corporations that want toit is almost certain to mean treating employees
be successful in leading in retaining talent arewith the appropriate respect and providing clear
listening carefully to these findings. A recent studycommunication of tasks, roles, expectations and
by the Gallup organization found that "at leastassignments. It also almost certainly includes
75% of the reasons for voluntary turnover canproviding appropriate growth and advancement
be influenced by managers."*opportunities and coaching for each employee.
Based on information gathered over a thirty yearEffective leadership from any management
period, the Gallup organization reported theperspective also requires leaders and managers to
following reasons for leaving:understand who their employees are and how
1. Career advancement or opportunities forthey function at their natural best, as well as what
promotion (31.5%)is important to them.
2. Pay and Benefits (22.4%)People with a high take-charge characteristic tend
3. Poor job fit (20.2%)to assume people understand where they are
4. Management or the general work environmentgoing. When their communication is ineffective or
(16.5%)inadequate, employees become frustrated
5. Flexibility or scheduling (7.7%)because the targets are unclear. In time, this can
6. Job security (1.7%)*create a lack of respect for the leader or worse,
Since leaders have a direct impact on thea perception that the leader doesn't value the
majority of these areas, it becomes apparentemployee for the contribution s/he is making.
that your leadership can make or break anyPeople who demonstrate a "high allegiance
retention program you devise.characteristic" approach tasks from the leader >
In another study by the Saratoga Institute, theprocess > procedure paradigm. They look to the
following reasons for talent loss (based on almostleader to provide clear direction about the process
20,000 interviews) were given:and the procedure, as well as the goal. People
1. Job or workplace was not as expectedmotivated in this way, especially if they are more
2. Mismatch between job and personcollaborative and supportive in terms of the way
3. Too little coaching and feedbackthey take charge, must be able to respect the
4. Too few growth and advancementleader. That respect hinges upon the ability of the
opportunitiesmanager to communicate to each employee that
5. Feeling devalued and unrecognizedthe employee is valued and valuable in reality and
6. Stress from overwork and work-life imbalancenot just by giving lip service to the idea. Clear
7. Loss of trust and confidence in senior leaders.**goals and direction must also be provided
Again, leadership can and should have significantconsistently. It is also the line manager's role to
impact on all of these areas.communicate to employees a clear and consistent
My personal experience is that many people leaveunderstanding of corporate goals, strategies and
jobs because of the way they perceive thedirection. It is in this last role that the manager
working environment and their opportunities to dohas the opportunity to build team cohesion and
what they love to do in a way that allows themrespect, as well as employee buy-in on corporate
to be effective, efficient and successful. In fact, ingoals and respect for senior corporate leaders.
many cases when people leave a job because ofIf employees are engaged in the corporate and
a mismatch with the job, the mismatch isteam goals and strategies and they feel valued
perceived rather than actual. This perceptionand respected for doing their jobs well, they are
points to either a poor hiring decision or a failureless likely to leave. Leaders at every level of the
of management to provide people with the toolscorporation must consistently communicate to
and the opportunities they need to do the job.employees the goals, the reasons for the goals,
Often people point to the immediate supervisorthe strategies in place to achieve the goals, and
(boss) as the reason for leaving a job. This mightthe valuable contribution of each employee to
be because the supervisor is not able toimplementing the strategies successfully.
adequately communicate expectations or goals. It*Turning Around Employee Turnover: Costly
might be due to the supervisor's managementchurn can be reduced if managers know what to
style. It is often because the individual believes thelook for - and they usually don't, " by Jennifer
manager is not providing the equipment, materials,Robison.
resources or opportunity to perform the job**Dealing with the Real Reasons People Leave, by
adequately. This may point to the failure of theJudith A. Ross, Harvard Business Publishing. Article
immediate supervisor to hear what their teamReprint No. U0508A.