Retaining Top Talent by Making People More Attractive to Outside Firms

Elizabeth Craig, John Kimberly, and Peter Cheese have written a good column for the Wall Street Journal about how to retain your top executive talent.   They argue that we ought to be investing in leadership development, even if it means that our people become more attractive to other companies.  We might lose some people because we've made them more employable by outside firms.  However, in many cases, that type of investment in our people will actually increase retention.  Here's an excerpt:

That's why it's crucial that companies get serious about retention now. And that means giving executives opportunities to take on greater responsibility, broaden their skills and cultivate a network of relationships with their peers. These are the things that executives we have surveyed consistently say they want most from their jobs.  Of course, executives want these opportunities largely because the skills, experience and relationships they acquire make them more valuable on the job market. So there is always the risk that a company may invest in building its executives' talents only to see some of them take those talents elsewhere.  But our research shows that executives intend to stay longest with those companies that offer the greatest opportunities to enhance their employability. On balance, a company will keep more talent by helping its executives grow than it would by denying them these opportunities. And as a bonus, its executives will be more valuable to the company itself.

I agree wholeheartedly. I would simply stress that companies cannot simply put efforts into leadership development without actually delivering exciting opportunities that come with increased responsibility.  If someone gets mentored, sent to executive education programs, and assigned a coach... but has to wait and wait for that chance to take on new responsibility... well, then they are likely to leave.   People want to know that their efforts at self-improvement are going to yield opportunities to practice their new skills and capabilities.   They want to learn by doing.   Moreover, employees don't just want more responsibility.  Promotions alone won't do the trick. They want exciting opportunities.  They want to tackle new challenges and explore new aspects of the business or of their discipline.  Meaningful work is key, not just a new title and more direct reports. 

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Retaining Talented New Hires

Jim Newman has written an excellent article for Fast Company regarding retention of talented new hires.  He focuses on the on-boarding process, arguing that an ineffective approach can do irreparable harm.   New hires may be gone in a very short period of time if firms mishandle those crucial days and weeks.  He argues that firms should focus on three things:

1.  Initiate Dialogue Before Orientation

In a number of instances, a significant period of time exists between the date when an individual accepts an offer of employment and the date when they actually start work.  Companies need to keep the lines of communication open with that individual during that time.  They must provide a steady stream of communication, in different forms and from different people. 

2.  Create Executive Leadership Interactions

Giving new hires, even young people joining the company, an opportunity to hear directly from senior leaders can be a powerful retention tool.   People want to know the big picture, and they would like to know that senior leaders are interested in providing development opportunities for them.  Everyone, from the front lines to senior executives, wants to understand how they can contribute to the accomplishment of the organization's broad vision and goals. 

3.  Prioritize team-based on-boarding opportunities

Newman argues that it is crucial to make "employees feel productive as quickly as possible."  Therefore, he recommends quick action to provide "team-specific opportunities that engage recruits in their areas of specialization while testing and expanding their knowledge about the company."   Companies don't want to focus only on the HR nuts and bolts (benefits, policies, etc.).  They also don't want to only focus on generic skills applicable to all employees.  They need to get specific early, so that people understand the skills htey need to be successful in their particular job, and so that they begin to form relationships with key experienced employees who can serve as mentors.  Newman provides a good example:  "For example, sales recruits might spend a week or more cultivating their sales pitches and testing them in simulated client meetings. Over the course of the week, recruits can present to sales managers or learn how to improve their performance based on actual case studies."  

I would add one other thought here.   Firms need to provide a series of early "check-ins" to insure that a new hire's on-boarding process is on track.  Some check-ins should be with the person's direct supervisor.  However, other check-ins might be useful with an HR representative, a peer in their work group, and perhaps a mentor at some higher level in the organization.  These check-ins should be vehicles for two-way communication.  The individual should receive some early constructive feedback and advice, while also being provided an opportunity to offer input on how to make their on-boarding process proceed more smoothly.  

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Why are you losing employees?

Have you lost some valuable employees in the past year?  Does your firm understand why those employees are leaving?   If you are like most companies, exit interviews serve as a mechanism for unearthing the reasons behind these departures.  I learned something quite interesting this week though.  In talking with a group of human resource executives, I discovered their frustration with the traditional exit interview.   Many executives expressed concern that departing employees are "too nice" in those exit interviews - they simply don't offer a candid assessment of why they have chosen to leave the firm.  Several HR chiefs offered a solution to this problem.  They described how their firms have eschewed the traditional exit interview.  Instead, the companies have hired a third party to conduct confidential surveys/interviews of these individuals several months AFTER they have left the firm.  The executives reported that these interviews yielded much more valuable insights... and much more candor, than the traditional exit interview.  

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