Tuesday, April 27, 2010

Why Do Talented People Leave Companies?

There’s a war for talent out there. The caliber of a company’s talent increasingly determines success in the market place. Having great talent is not only important, but critical. Employee retention, especially of your best, most desirable employees, is a key challenge in organizations today. An employee's expectations of developmental, financial and psychological rewards he/she gets from his/her work are way up. Switching jobs has little, if any, stigma associated with it. High performers are likely to leave companies where they feel underdeveloped, undervalued, and underpaid. Remember, workers are not fixed assets. They are free agents.

Talented employees may leave a company for a variety of reasons. Employers often feel that the primary reason for an employee to work for any organization is money, but the employees may also leave a company even if the pay is good. The employee may be burned out, may not fit into the culture or may leave for personal reasons such as illness, family obligations, etc.

Sometimes you may have to look below the surface.

The pay may be good, the hours are right and the location is good. While people may chase the money thinking it will bring happiness, money is only a maintainer, not a motivator. Notwithstanding financial rewards such as bonuses, performance incentives, etc., employees need recognition, promotion and progression up the management ladder. If employees are not able to accomplish this, they may leave in spite of the good salaries.

"People leave managers not companies," write the authors Marcus Buckingham and Curt Coffman. If you're losing good people, look to their immediate boss. The immediate boss is the reason people stay and thrive in an organization, and the reason why people leave. When employees leave, they take knowledge, experience and contacts with them, straight to the competition.

Ask the right questions. Do the managers create the right opportunities for the employees? Is there a lack of training and/or development opportunities? Is there recognition for employee contributions? Do the employees get along well with their manager? Do employees have the support of their manager? Do employees have the trust of their manager? Do your managers need training? Do managers have open communication with their employees? Do they develop their subordinates?

Top talent is bombarded by recruiters and peers at other organizations with opportunities to make a move. The result is that top talent is always evaluating their current situation vs. alternatives, not only in terms of dollars, but also with respect to work environment, growth opportunities, etc. So if the company forgets to value their top performers every day, that could be the day that another opportunity wins.

There is nothing worse than an employee who doesn’t feel appreciated.

Survey your current employees often. Ask them why they stay.

Keep communicating people.

My continuing thanks to Emily McGowan for proof-reading services on this blog.

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