Focus on Retention
After completing this unit, you’ll be able to:
- Determine when it’s time to focus on retention tactics.
- Open a courageous conversation with an employee about their disengagement.
- Consider different types of compensation that you can leverage to keep valued employees on board.
If you’ve ever ridden a bike, you’ve probably had the experience of the chain coming off of the chainring: All forward movement stops, and you’re suddenly at a standstill. To get the chain and sprockets reengaged and all of the components working together again, you have to do one of three things:
- Fix it yourself.
- Ask someone you know to try their hand at it.
- Take it to an expert to get things back on track.
Surprisingly, you can take the same approach when getting disengaged employees engaged again. You have to figure out what has caused things to get off track and then take the necessary steps to get things moving smoothly again.
Sure, it’s probably not the most enjoyable part of being a manager. It’s often going to present unexpected challenges. And sometimes you have to bring in an extra pair of hands (your manager) or an expert (HR business partner) to help. But taking a proactive and collaborative approach is the best way to get things running smoothly again. Okay, with that in mind, let’s get to fixing.
So you’ve hit the point when you’ve had 1:1s, tried casual conversations, sent emails and seemingly used every tool in your arsenal of engagement. Yet your report is still disengaged. What now?
It’s time to have an honest, open dialogue about disengagement. This conversation can be challenging for both you and your team member. It’s important to keep an open mind and prepare what you are going to say in advance. What does that look like?
Set context. Similar to engagement conversations, make sure that employees know where they fit into the organization, why their role is important, and that you, as their manager, value their efforts. Talk about why you’re having the conversation so that they don’t feel unsure about the purpose of your discussion.
Ask questions. Here’s a sampling of questions that can drive the conversation. Strike a balance between personal and work-related queries to uncover potential engagement blockers.
- Tell me how things are going. What’s not working?
- Would you like to work on a different project?
- What do you like about your work?
- What brought you here, and what keeps you here?
- Think of a time that you’ve been completely engaged in what you were working on. Can we bring any aspect of that into your current work?
- What is it that you want out of your career?
Provide examples. Think about incidents or projects to discuss that would be fitting to bring up. Having a selection of concrete examples is helpful, especially if you think the employee is surprised by your concern.
Reference the past. Consider referencing comments from previous engagement conversations. Showing them that you’re monitoring their concerns and actively looking to address them is a big engagement booster!
Listen to their responses, take notes, and communicate that you are invested in finding a solution. By looking for the source of their feelings, you can likely address their unhappiness. Here are a few ways to interpret common frustrations into actionable changes.
|What They Say
||What You Can Do
“I feel lost on my career path.”
“My work is never noticed.”
“I’ve been doing the same thing for too long.”
“I’m not sure if I’m good at what I do.”
“I need a change of pace.”
“I’d like to become a manager.”
As a manager, it’s your responsibility to schedule follow-up meetings and check in on your employees’ progress, especially when they are disengaged. We know it feels like just another thing to add to a jam-packed schedule. But opening this dialogue shows them that you’re dedicated to keeping them on the team and care about their well-being.
At the end of the conversation, if your valued employee is still unhappy, it’s time to “phone a friend” for help. And for the record, this step is not a sign of inexperience or weakness. On the contrary, your HR business partner or more senior manager can help you think through a host of important considerations, including:
- Reviewing past performance information to identify strengths that could be applied to new projects or roles
- Identifying lateral opportunities within the company
- Reviewing growth and development opportunities
- Conducting a “stay interview” using the questions found in the “Ask Questions” step of the disengagement conversation steps earlier in the unit
With that in mind, you can approach the employee with more information and options to work toward retention. Following this conversation, if an employee still feel dissatisfied, it might indeed be time to find a new opportunity. To gauge this, it’s time for another honest conversation, but this time it’s with yourself.
Here are the factors to think about.
- How well has this individual performed?
- Would customer relationships be at risk if the person left?
- Is there another employee who could successfully step in if needed?
- How much of an influence is this person on colleagues?
- Would the loss of this person have a negative impact on others?
- How difficult and costly would it be to find a replacement for this employee?
- How important are the skills and knowledge this employee has?
- Do other employees possess the same skills and knowledge?
With answers to these questions, you can better decide whether to use retention tactics or let the employee go. Much like a breakup, letting someone go isn’t easy, but it’s essential to move the individual, team, and company forward. Whether it’s performance- or fit-related, if there is a valid reason for one or both parties to move on, it’s the right solution. Be sure to engage and consult next steps with your HR business partners before you make this decision.
Alternatively, if keeping this valued team member on board is a high priority, it’s time to think about how to make that happen.
So, let’s say you’ve spoken with your HR business partner and the senior leaders on your team, and everyone agrees that keeping this teammate is a must. Getting buy-in from your HR business partner and senior leaders is important because you want to present an aligned, agreed-on option to the employee in a retention conversation.
It’s just like when you were a kid and one parent said, “Sure! We can have pizza and cookies for dinner,” and the other says, “Absolutely not, eat your broccoli and chicken.” If you offer your employee options that HR or your managers are not aligned with, then much like that broccoli dinner, crushing disappointment, anger, and a looming sense of unfairness could ensue.
When you’re all on the same page, open the retention conversation by asking what the employee is looking for. An important study by Make Their Day, an employee motivation firm, found that most employees are more motivated by kudos than compensation. Eighty-three percent of respondents said that recognition for contributions was more fulfilling than rewards or gifts. Whoa!
That being said, when the employee has been a major contributor and the manager sees that tremendous growth potential, salary adjustments or retention bonuses might make sense.
As you look at the following table, remember to consult with and review these options and get approval from the following people before moving forward.
- Your manager
- HR business partner and finance manager
- Compensation manager
Additionally, your HR Business Partner or finance team probably have a defined cadence for considering these options. That means it’s even more important to align with them before make an offer to your employee to ensure that you can deliver on your promise in a timely manner.
||What It Is
||When It’s Appropriate
||Merit-based salary adjustment for a valued employee who has demonstrated growth potential
||Responsibilities have increased.
External market conditions call for an adjustment.
Salary is out of alignment with peers doing the same job at the same level.
||One-time bonus payment for outstanding performance
||An employee has excelled on a project or specific work effort.
||One-time bonus payment to retain top talent
||An employee has specialized skills, relationships, and expertise that are critical to the business.
||Reward of stock shares for top talent, employees in broad scope, or critical roles.
||An employee is top talent or in a critical role where retention is critical to the success of the business.
But wait, there’s more! Don’t forget that you can improve compensation packages with social- and wellness-based levers, including:
- Time off
- Flexible working hours
- Sabbatical options
- Employee assistance programs (if your company offers them)
Remember, compensation is more than what you take home at the end of the day. In a retention conversation, these additional options can also make your direct reports feel more supported because of your sensitivity to their personal needs.
Let’s Sum It Up
Having a disengagement conversation with an employee is challenging for sure, but don’t sweat it! All it takes is preparation and awareness of the retention options you can use to keep your team member happy and fulfilled.
Speaking of preparation, you can download the Engagement Conversation Planning Tool from the Engage & Retain Employees pack to think through all the steps we’ve outlined in this module.
Keep in mind that employees are only worth “saving” if they truly are a valued employee and demonstrate the commitment and motivation to work for the team’s greater goals.
- Retaining a flight-risk employee is about figuring out the source of unhappiness. Addressing the root of the problem is how you find a long-term fix rather than a bandage to the problem.
- Before you hit the Go button on retention tactics, make sure that the report’s departure would have a pronounced negative impact on your team. Evaluating performance, team impact, and the uniqueness of the employee’s skill set helps you make that decision.
- In addition to financial retention levers, think about other factors, like encouraging use of paid time-off and sabbaticals (if applicable) to make your employee feel supported.
Engaging and retaining your most valued teammates is of vital importance to your success as a manager and to the growth of your organization. We’ve given you lots of actionable tips and strategies to make engagement and retention easier to implement. Ultimately, it’s about showing and ensuring that the people on your team know that you truly care about their success and well-being.
- Reward and Engage Your Multigenerational Workforce
- New Employee Study Shows Recognition Matters More Than Money
- Engagement Conversation Planning Tool (download from the Engage & Retain Employees pack)