Tag Archives: developing people

A Good Question About Retaining Talent

retain

We all know that unwanted workforce turnover is disruptive and costly*. In a recent article, fuse, a workforce management firm, shares four of the most common reasons employees opt to leave a job. It’s likely we know these reasons as well…

But the good question posed in the article is whether or not we are taking proactive steps to avoid unwanted turnover!

In case you’d like a quick refresher, the article identified the following as the most common reasons employees leave:

  • Poor relationship with their manager
  • No clear path forward
  • Good work isn’t valued
  • The job doesn’t promote work-life balance

With a little forethought and planning, it shouldn’t be difficult to avoid these pitfalls; and, as the article states, “With the market for skilled talent becoming more and more competitive, smart employers will take stock and do whatever it takes to keep their best and brightest satisfied.”

To add additional perspective, when Gallup announced that the percentage of engaged workers had, for the first time in a very long time, increased just before the pandemic, their research showed that the primary reason for the increase (from 30% to 36%) was that organizations had made improvements in their approach to developing people.

  • the cost of replacing employees is somewhere between 90-200% of their annual salary based on a recent SHRM study!

Performance Management Contrasts

We’ve had some fascinating conversations about performance management over the years, and have found quite a range of formal and not-so-formal approaches, along with variations in defining the process.

But while different organizations may employ different methods, there are a few areas on which most everyone we’ve spoken with enthusiastically agrees:

  • Positive versus punitive performance management works best.
  • Recognition is an important element of managing the performance of individuals.
  • Management must manage the performance of both individuals and processes.
  • Regularly scheduled performance reviews or evaluations of individuals are key and should be conducted more frequently than once each year.
  • Performance evaluations need not be coupled with merit-based or time-based pay raises and, in most cases, are more effective if not coupled with pay raises.

How does your organization define and execute performance management?