The old saying is true: It’s not technology or financial assets that make your business great, it’s your people. You’ll have a critical advantage over your competition if you know how to retain good people.
Retention doesn’t mean you try to hang on to every employee forever. Nor does it entail spending time and energy trying to keep employees who aren’t productive, in this case, it is almost always better to let them go.
Instead, retention focuses on strategies to keep good employees for the right amount of time at a particular function or level. Just like in football, get them at their peak, then change them when they in decline. Might sound harsh, but that’s what usually happens.
Especially if you are a manager, you are particularly positioned to do this. Many employees value a positive relationship with their supervisor as more important than pay or perks. An employee may join a company because of its generous benefits and fun culture but it’s the relationship with the manager, that frequently determines how long your employees stay and if they did stay at all.
Here is what actually happens if you managed to retain a good talent –
- Keeping hold of good intellectual capital. Good employees have a wealth of skill, experience, and ideas. When they walk out the door, all that knowledge leaves too. It’s a double loss when a talented employee goes to a rival.
- Maintain good morale. When employees stay on, it shows that organization recognizes good work and is a place to grow. In contrast, if your company’s “best and brightest” are leaving, what signal does that send about the organization’s prospects? Departures may cause remaining employees to feel overworked and restless and willing to look for new jobs too.
- Attract other good people. Smart, committed employees are more likely to help recruit additional talent, collaborate well with others, and generally strengthen your workplace culture.
- You will have better control on costs. It’s expensive to recruit, hire, and train replacements when employees leave. For particularly competitive jobs, you may end up paying the replacement a higher salary and benefits.
Strengthen your reputation. You want to be known as a well-managed company that has loyal, engaged employees. A dramatic pattern of attrition may cause your vendors, customers, and investors to question your firm’s stability and effectiveness.