Employee retention is often a key metric that managers follow to determine if there are critical gaps between the ability of leadership teams to attract and retain great talent. It is too expensive to constantly re-hire key positions in the start-up companies, which start successfully, can expect to have about 100% retention year after year since the emotion that comes from working for new businesses tends to overcome many of the negative aspects that people find working In typical companies.
However, if analyzed in detail, key people leave even in the most promising companies: in small organizations this is often detrimental to basic operations.
Managers should be properly trained in how to provide meaningful and measurable feedback to their employees, taking into account the corporate mission and the expected results so that they feel positive in relation to their contributions in general.
Non-professional managers (promoted to management for reasons of technical skill) tend to need the most training for successful management. With the help of the human resources area, the steering committee has to create and support a climate of results-oriented actions based on rewards for the success of the behavior. Compensations depend on improved productivity, high retention rates and the long-term excellence that the company achieves.
Employees leave companies when they consider that their professional mobility is no longer visible to them or they are not sure of the role their managers play in their careers. Recruiters must work to attract the best profiles for existing roles. Managers must be primarily responsible for paying attention to success management, performance recognition and the general progression of people’s careers. It is an essential part of your job and should be visible as a measurable goal. The CEO must regularly engage with key employees to foster open communication, but also to maintain the sense of his commitment to the Company.
In general, a retention plan may determine that it is better to have semiannual objective reviews compared to annual reviews. Being semi-annual, it encourages more timely face-to-face communication between the manager (now in a coach role) and the employee. One of the success review sessions would be a longer process (including compensation and equity) and the other just a “contact base” to discuss changes or progress towards the objectives. Identifying the progress of key objectives and expectations at the beginning of the planning year also keeps everyone on track for the year. Some companies try to make quarterly returns (also called “successful” returns in the United States) to their employees, but this could take too much effort depending on each case.