Retaining top executives should be a priority for any organization. Not only is this beneficial when it comes to productivity, it is also better for the company’s coffers.
According to the MIT Sloan Management Review article “Getting New Hires Up to Speed Quickly,” a Mellon Financial Corp. study found that companies end up spending more money whenever they take in new employees. This is because new hires are expected to have learning curves when it comes to accomplishing tasks, thereby affecting productivity and possibly leading to loss of income.
According to an Industrial Distribution article, the National Association of Colleges and Employers says that when businesses recruit and hire a new person in a company of fewer than 500, they spend $7,645 on the average per hire. Think hiring costs, job posting fees, and training, among other things. It is more expensive to hire people than to keep current employees.
With this in mind, it makes sense that an organization would be more focused on building up their talented executives by creating a healthy work atmosphere with positive employee engagement. When hard work is recognized and rewarded, employees will be more motivated to stay and grow with the company.
A healthy organizational structure and development can help drive talented individuals toward doing quality work and becoming great contributors to the company’s growth and success.
In this article, we will discuss the reasons why employees leave and how we can prevent our top executives from vacating their positions.
Reasons Why Employees Leave
To retain top executives, we must first understand why employees quit. There are many factors that contribute to an upward trend in employee turnover, and below are some of the biggest reasons:
Dissatisfaction – This could be due to lack of employee development and growth opportunities, unsatisfactory salary and benefits, or poor employee management.
Better Opportunities Outside – The business world is a competitive arena, and chances are that if an employee feels dissatisfied in a certain area of his or her employment and sees a better opportunity elsewhere, that employee will leave.
Work-Life Balance Issues – People have lives outside of work, and when there is a great imbalance between the two, it can cause them to leave the company and pursue a more compatible or flexible work opportunity.
How to Retain Top Executives
Employee retention is one of the most important ways to gain ROI in any business and below are some of the ways to get your top performers to stay with the company for many years.
The first step in managing employee retention is during recruitment. There should be an alignment between the applicant’s and the company’s mission, vision, and values. The more in sync they are, the healthier the employer-employee relationship.
An employee who believes in the company’s goals is more likely to stay longer, so careful filtering should be conducted during the hiring process. If the applicant is following a proper executive resume example, it should be easy for the recruiter to check and cross-reference important items during the interview, with the goal of finding a candidate with similar goals and values as those of the organization.
An unchallenged employee is an unhappy employee. It is important that the company partner with the employee regarding growth and advancement and that such goals be established and made clear to the employee. Adult learners are goal-oriented, and by motivating them to reach higher goals and learn new things, they will be more encouraged to stay.
Continuous learning and development should be enforced, which will allow the employee to upskill and move to a higher position.
Recognize Talent and Hard Work
Build self-esteem and confidence by appreciating your employees’ hard work. Positive feedback is a highly effective way to reinforce positive behaviors. If your employees feel good about themselves, they will be motivated to become even better.
Adaptability and Flexibility
Much has changed within the past couple of years, and companies need to keep up with trends and current events, so their employees can continue to feel safe and relevant. It is also important to be aware of your top performers’ current needs so that the company can find ways to help them overcome challenges.
It is essential that organizations become more open to flexible work schedules, work-from-home arrangements, and remote work, if applicable. This is a great way to avoid work-life issues, which can lead to resignation.
Offer Compensation and Rewards
People who are satisfied with their pay grade are more likely to stay longer with a company. Needless to say, the company should offer competitive compensation, benefits, and other rewards.
Employees might love their job, but if not well compensated, a resignation could be inevitable.
Regular Employee Engagement Activities
Engaged employees are less likely to leave the company to find better opportunities. The more engaged an executive is, the better that person understands his or her role in the company’s success, and this is something the employee can take pride in.
Come up with strategies and activities that promote employee satisfaction and motivation.
Employee retention is a lot like customer retention. We go to great lengths to keep our customers happy so they will continue doing business with us. Why not do the same for our top executives?
Post written for Jobcast by Linda Ross.Read More