Strategies to Build the Great Retention

The writing is on the wall. The chasm between what employees want and expect from their employers and what companies are willing to offer is widening. Even as the economy slows and hiring freezes are becoming the norm, the Great Resignation is still happening. As a result, employers are facing 2023 with smaller budgets, fewer employees, and greater demands on performance and results. 

To quote Nelson Mandela, "The greatest glory in living lies not in never falling but in rising every time we fall." My point? Let’s look at this particular moment in time as both an opportunity and a challenge. We here at HigherPeople are always up for a challenge. 

As we roll into 2023, human-focused leaders can turn the Great Resignation into the Great Retention, as Forbes and many others have called it. We all know how powerful employee retention is for any company. When our employees stay longer, they strengthen company culture, build solid and high-performing teams, and grow the bottom line. Retention should always be a company goal, no matter the current economic or business situation. But in this current climate, it is critical to survival. Hence, opportunity and challenge. Who's with me?!?!

The Top Five Reasons People Leave Their Jobs Are Mostly Cultural

To build a strong retention strategy, the first thing to do is understand why your employees are leaving. According to iHire’s 2022 Talent Retention Report, the top five reasons people left jobs from January to August 2022 were:

• 43.7% were unhappy with their manager/supervisor

• 43.4% were unhappy with their pay/salary

• 35.4% reported having a poor work/life balance 

• 29.7% felt there was a lack of recognition/appreciation

• 28.3% felt there were few growth/advancement opportunities

Spoiler alert! Four out of five of these reasons reflect your company culture and how human-focused your company is (or isn't). This is where the opportunity exists. Let's build a company culture that puts people first. Productivity and profitability will follow. How do you do that? I'm glad you asked! Here are some strategies to consider. 

Your Staff Wants to Be Connected to Your WHY 

People feel connected to companies with a clear purpose and core values. Revisiting your organization's “WHY” and creating purpose-driven moments for your staff to reconnect with it is an impactful way for them to feel aligned. Reminding them how their day-to-day tasks support the larger purpose is the simplest way to create this alignment. 

Every company has a purpose, but few companies clearly articulate it. Purpose is the reason that your organization exists. It's the reason your employees join and choose to stay. In turbulent times your team's belief in what your company is trying to achieve is even more critical. This is your chance to prove to your people that there's more to your organization than the bottom line. And don't just talk the talk; show them you mean it with actions and results. 

87% Want Employers to be More Transparent

Your leaders are driving people away. Ok, that's a little dramatic, but the survey results don't lie. Issues with management are causing more resignations than salary concerns. The key to retaining employees is human-focused leadership. This means leading with transparency and emotional intelligence. Your leaders should know and understand how to communicate with employees so that they feel included and connected to them and to the company. According to a Slack study on the future of work, 80% of workers want to know more about how decisions are made at work, and 87% want their employer to be more transparent. 

Empower your leaders to openly discuss strategy, direction, and purpose with their employees. Encourage them to share news and updates about the business to encourage more transparent conversations. Don't assume your employees don't care about the industry or the numbers. Share research you or your managers are doing on innovations or new directions leadership is considering. Transparency is critical to trust. 

Also, employees look to leaders to model how to act within their company. Leading by example creates a positive work environment and strong company morale. Here are two simple examples. First, say “thank you.” There is power in those two words. Don’t just dash off a “thanks” in an email and call it a day. Make a point to show gratitude to your employees often and tie it to a specific action the recipient did so they can see that you are sincere. Second, show your team that you always show up and you value their time. This can be as simple as being on time for meetings. Your team’s time is just as valuable as yours. Show them you value it and them. Be available. Don’t make them wait. 

Great leaders understand the impact they have on the lives of their employees. They understand the need to set an excellent example for the team. Because when you model the behavior you want to see in team members, you are more likely to lead a highly functional and engaged team. 

Define a Career Path, When You Can

When your employees can't see a future for themselves in a job, they are less likely to be engaged and more likely to leave if another opportunity comes around. It's essential to provide your employees with clear and consistent opportunities to grow professionally. Encourage managers to have consistent conversations on career goals and to build a career development plan with each team member. Offer cross-training, adjacent learning, upskilling and reskilling opportunities. Provide tuition and educational expense reimbursement and encourage stretch assignments. Open as many lateral and cross-functional opportunities within your organization as you can. 

Let's be honest - you might not have a vertical career opportunity open for everyone on your team. This is okay. Even if someone leaves, they will leave talking about how much you did to help their career grow and this in turn helps the employer brand. A positive employer brand is powerful. So, don't let that concern stop you from creating a company culture of advancement and potential. 

Have You Ever Asked Your Employees Why They Stay With You? 

To feel engaged, your employees need to know that their input is valuable and important. Clear and open lines of communication are critical to a strong company culture. This means more than just having an "open door" communication policy. It also means implementing DEI programs and employee resource groups that have an impact. It means creating a continuous employee feedback loop that collects crucial data and sentiment on employees' concerns, like flexible schedules, benefits, leadership, and work environments. Never assume you know what "your people" want or will say. Let them use their voice to tell you.

Here's one interesting strategy to consider. A stay interview is a structured one-on-one conversation with current employees willing to be honest about their job and the company. These interviews can give insights into how your company is doing regarding staff job satisfaction. The results can also help you proactively react to issues before you lose staff members. In addition, stay interviews can enhance a culture of trust and transparency when you are open to honest feedback and are committed to acting on it. The recommendation is to conduct these interviews with long-term employees once a year as part of your yearly performance review cadence.

Want to start today? Here are 20 questions to ask in a stay interview. I particularly like these: 

• Do you feel that you are currently doing the best work of your life? 

• Can you list the factors that could contribute to you doing the best for your life? 

Can you imagine how interesting and insightful your team's answers would be? That’s powerful information! 

“Standard” HR Practices for Retention, Which Sadly Aren’t so Standard

Not surprisingly, employees are more likely to stay at jobs where they feel recognized. Yet, many employers don't have an employee recognition program; if they do, it's half-assed at best. If this is you, no judgment, but now is the time to change that. 

Establish an employee recognition program that recognizes staff members throughout the year in an impactful way. This is more than just giving out awards at a yearly event. Ask your leaders to help create a program to recognize their teams daily or weekly. Make it easy for any staff member to publicly give props to their managers or peers. Offer incentives to the staff members who stand out the most. The best program will result from engaging your employees in its creation. Ask them what they would like to see in their recognition program. 

Employee events are still very effective in building staff engagement, especially if your workforce is remote. Reward teams for successes or milestones with in-person celebrations and schedule regular company retreats with team-building activities. When you create positive and fun experiences, your employees feel part of the company community. 

Salary is the second reason employees leave their jobs. That is a discussion for another blog. However, there are benefits you can implement that might mitigate that concern for certain employees. Ensure your company offers a benefits package that makes a difference in your employees’ lives. Here are some suggestions:

• a strong 401k company match

• health insurance that extends coverage to non-dependents

• paternity leave

• family planning benefits, including egg freezing, IVF, and abortion support

• bereavement leave

• flexible PTO policies that include paid time to volunteer or take sabbaticals

These details may be more important to some staff members than their salary. Remember, replacing an employee is expensive, maybe even more costly than the increased expense of extended benefits. Keep in mind that many of the benefits above can also be fully written off, so it's often a better solution for tax reasons to offer them to employees versus increasing salaries across the board.

2023 is Going to Be a Challenging Year for Most Businesses

Don’t be a statistic in the Great Resignation. Your employees want to understand your company’s purpose. They want to feel like they are a part of a community. They are looking to you for connection and engagement. They want to stay. Let’s give them reasons to stay. Let’s take this opportunity to be a part of the Great Retention. 

Need help? The HigherPeople team are experts in employee retention and have plenty of ideas to share. We are up for the challenge. Let’s do this!

Manager’s Best Practices for Surviving a Layoff

There is a right and wrong way to handle a layoff. Not all layoffs have to look like the recent chaos at Twitter. Really! Don’t believe it? Hear me out. 

Layoffs are an unfortunate reality. As difficult as they are, they are sometimes inevitable and we’re seeing more within recent months. Companies that are people-first at their core can handle a workforce reduction through that lens. With a people-first approach, your company can minimize damage to the culture and environment. As a manager, you can help make this happen if your company is heading towards a layoff or are in the middle of one. How? Let’s try to unpack it!

How to Handle a People-first Layoff

Let's first establish that most layoffs are handled poorly. Research shows that when layoffs are perceived as unfair by employees, it negatively impacts the business objectives of the company. The data shows that after layoffs, those companies suffered decreases in profitability for up to three years. Also, other researchers found that companies that have contentious layoffs are twice as likely to file for bankruptcy as companies that avoid them.

There must be a better way. And that's where a people-first lens becomes crucial. The same researchers also identified positive alternatives to layoffs. Here’s just one idea. Reskilling your people instead of firing them.  When your staff has critical transferable skills, it's a missed opportunity to let them go. They could excel in other areas of your company where you need help. For example, we know a company that offered their recruiters the opportunity to become sales coordinators or sales development reps before resorting to laying them off.  

If you must do a layoff, there are also ways to minimize the damage. With transparency, planning, and a long-term focus, it is possible to have a workforce restructuring with minimal damage to people and culture. We’ll outline these people-first strategies in this blog. If you are in a position to share these insights with your company's C-Suite or your CEO, I encourage you to do so.

When Layoffs Occur

As a manager, it's your responsibility to shepherd your staff through any change in the business structure, no matter the cause or the strategic plan. Perspective is critical. When the layoffs are a done deal, how or why you got there is not as important. What matters is that you're here now, and your employees need you to get it done with as minimal damage as possible.

Put Your Own Mask on First

Often, the chaos of a layoff is not unlike a plane going down. And as we all know, it's better to put your own oxygen mask on first before helping others. That means getting yourself right before telling your staff. All leadership begins with self-leadership. You will not help anyone if you show anxiety, fear, or negativity to your staff. Your job is to dial down anxiety, not stoke it.

We get it. This is easier said than done. Many of the leaders report feeling isolated when facing any organizational change. Some of these feelings come from the view that managers must solve all of their team issues themselves, i.e., making sure everyone has their mask on. This is short-sighted and just plain wrong. You can't solve your company's issues all on your own. However, you can mitigate the fallout and protect your team with a more global outlook.

Zoom out. Seriously. Think beyond your desk, your office, and even your department. Look past your own anxiety and uncertainty. Consider the factors that have contributed to the situation and what needs to be done to change it. When you think about the bigger picture, you will find it easier to adapt to a "new normal" and hopefully find hope in the future. When you get yourself in the right headspace, it will be easier to get your team there too.

Start with a Comprehensive Communication Plan

Just say no to social media! Strategic transparency during a layoff is critical to employees who are being let go and those who are not. The horror stories of mass layoffs via Zoom or social media are unacceptable. Let's treat employees as people and not numbers. Your employees deserve to hear this news individually and face-to-face whenever possible. They are entitled to ask questions and have a reaction to the news. As a manager, you may not be able to answer all their questions, but they still deserve to have the conversation.

Employees not in danger of layoffs are just as entitled to know what's happening. After all, their jobs will be affected. Team morale and productivity can suffer in the aftermath of any workforce transformation. Think through how the restructuring will affect their work, make a specific plan to implement it, and communicate the layoffs and your contingency plan during team meetings and one-on-ones as soon as possible.

Experts say your communications to employees should be:

• Honest: Don't sugarcoat the situation. It mostly sucks. Be accurate, complete, and direct. Tell the employees what they need to hear, even if it is unpleasant.

• Authoritative: This message should come from the CEO or President, so the employees understand the gravity of the situation and trust that it's accurate.

• Inclusive: All levels of your company should be included in the communication plan. Do not isolate specific teams or groups just because you think they are not involved. Everyone is involved. Everyone cares. Everyone matters.

• Timely: Never, ever sit on layoff information, especially if the rumor mill is working overtime. That’s the quickest way to foster distrust, division, and litigation.

• Responsive: Allow your employees to comment, ask questions, and provide input. 

• Helpful: Give staff the necessary tools to adjust to their new normal. This could be information or language to share with clients, vendors, and external partners. It could also include timelines and plans for workload changes. 

• Forward-thinking: Staff reductions are a response to the present. However, your employees want to know what the future holds. Outline the plans the company has to overcome the situation and the reasons why layoffs were necessary.

Lead with Empathy

If you Google "how to lead through a layoff," you'll probably find a bunch of articles that tell you to "lead with empathy.” Well, duh! You would think that would be a given. But if you consider the recent actions of Elon Musk at Twitter and others, it's safe to say some leaders need to remember what empathy means.

Empathy is the ability to understand and share the feelings of another person. Leading with empathy means making time and space for every employee. It means going out of your way to reduce their anxiety, understanding how your employees like to work and how they like to consume news, and knowing how to best communicate with them.

Here are some simple examples of leading with empathy.

• Offer support to those directly impacted and ensure you follow through if they want your help. Example: Create communication channels, direct references, and resource guides.

• Especially during uncertainty, name last-minute meetings with something that gives staff clarity on the purpose to avoid unnecessary stress. For example, instead of "Quick touch base," try "Quick Update, All Good News". 

• Some employees may prefer to avoid derailing their workday when new information is released. Empathetic managers know this and schedule their communications for the end of the day or the week when possible. 

• Sometimes employees don't absorb all of the details of workforce changes the first time around. Don't assume your staff already knows something, and don't post critical information only once. Overcommunication is key to team acceptance. 

• Transparency also promotes confidence. Think about how you felt when you first heard changes were happening. You had a million questions, right? Your team is feeling the same way. If you aren't open with your team, they're likely to suspect the worst.

• Address the very real issue of survivor's guilt. Every employee still standing after a layoff will feel guilty, which could further decrease team morale. Finding ways for your team to talk about and rise above these feelings is critical. 

Our friend, Bernard Coleman, Head of Employee Engagement at Gusto, recently made this very astute insight in his Forbes blog. He said, “Leaders can't begin to help coach or lead their folks through crises unless they are equipped to effectively react to the change.” Leading with empathy is a large part of being equipped.

Foster Human Connections

Layoffs can be polarizing, so avoid that with intentional acts that foster connections among your staff. Rally employees behind a shared sense of purpose. Build trust by letting them know you are with them. This may be the time to be a little vulnerable. It’s ok to tell your staff, "I’m really struggling with this decision too, but I'm going to do everything possible to make sure you are not overwhelmed. I’m here to take on some of your workload if you need help and if you need a day or two off, I totally understand." By expressing your own vulnerability, you can strengthen bonds in ways that can never be done in calmer times.

Give your employees multiple chances to discuss the changes from your top leaders and with each other. For example, hearing the overall strategic plan for the future from the C-Suite will make a huge difference in how your team feels about a layoff. In addition, facilitating small group discussions in which your team or departments discuss those plans concerning workload is also essential for long-term buy-in.

Your relationship with your staff is so crucial in times of change. The stronger your connection is, the easier it will be to pull them together. Make yourself as visible as possible. Try to speak with staff as authentically as possible. Don't hide behind virtual screens and emails if you can avoid them. Pick up the phone. Write a note. Visit the break room where appropriate. Most of all, ask your staff how they're doing and how you can support them. They want to know you're in the trenches with them and have their back.

What Not to Do During a Layoff

Sometimes it helps to know what not to do. We mentioned the recent layoffs at Twitter as an example. Unfortunately, there are many other examples of companies whose leaders botched a layoff. The lessons to learn here are essential. Here are just a few.

• Don't conduct a mass layoff via a large Zoom or in-person meeting that lasts 2 minutes

• Don’t tell the media about the layoff before you tell your staff

• Don’t lay off a large percentage of your workforce and then try to bring back some of them soon after (cough, Elon, cough)

• Don’t blame the layoff on employees’ productivity or morale

• Don’t offer terrible severance packages or immediately cut benefits like health insurance

• Don't ignore the staff who are left to pick up the work

Again, this list may be obvious to those of us with a brain and a conscience, but the best among us has been known to lose their heads in times of upheaval. So, here's your reminder to keep calm, be human, and speak your truth. A people-first approach will get you and your team through this together. 

Managing through a layoff can be overwhelming! We get it. Know you're not alone, and we're here to help. We can help you upskill your staff to be more productive, and we can help you create policies that keep them from jumping ship in the middle of the storm. When the time is right, we'll also be there to help you build your team back to full capacity. Let’s try to turn the current chaos into a productive opportunity together.