Employee retention: practical steps for managers

Employee retention depends more on daily management than on big perks. Most people who quit could have been kept, and the fixes cost more time than money. This guide gives you five steps you can start this month.

Why people leave

The Work Institute studied more than 250,000 employee interviews, including over 37,000 people who quit in 2018. It found that more than 3 in 4 of those who quit could have been retained by their employers.

Here is why people said they left, out of every 100 who quit:

22 left for career development.
12 left for work-life balance.
11 left because of manager behavior.
9 left for pay and benefits.
8 left over well-being, and 8 over the job itself.
5 left because of the work environment.

Pay is far down that list. Growth, balance and the boss come first. All three are things a manager can work on right away.

Sources: Work Institute, 2019 Retention Report: Trends, Reasons and a Call to Action (workinstitute.com).

Make pay clear, not just bigger

You may not control the budget. You can still explain how pay works. Many people leave because they do not know how to earn a raise.

Tell each person the pay range for their role. Say what skills or results move someone up. Review pay once a year on a set date, and say the date out loud. If you cannot give a raise, say so plainly and explain why. A clear no is better than a vague maybe.

Small things count too. Pay on time. Fix errors fast. Thank people in writing when they do good work.

Build a growth path for every person

Career development was the top reason for quitting in the Work Institute data. People want to learn and move forward. If they cannot see a next step, they look elsewhere.

Hold a short career talk with each person twice a year. Ask three questions. What do you want to learn? What role do you want in three years? What would make you leave? Record what each person says, then pick one request and act on it within a month.

You do not need a promotion to offer growth. Give a stretch project. Pair someone with a mentor. Let them lead a meeting or train a new hire. Pay for one course or book per year if you can.

Sources: Work Institute, 2019 Retention Report (workinstitute.com).

Fix your own manager habits

Gallup's research says managers account for about 70% of the variance in employee engagement scores. Engaged people tend to stay. So your habits matter a great deal.

Gallup found that employees whose managers meet with them regularly are nearly three times as likely to report being engaged. Engagement is highest when people have some contact with their manager every day. Engaged employees also say their manager returns calls and messages within 24 hours.

Try this routine:

Hold a weekly one-on-one of 20 to 30 minutes. Do not cancel it.
Reply to messages within one working day.
Set clear goals, and talk about progress more than once a year.
Ask about the person, not only the task.
Apply the same standards to everyone.

Sources: Gallup, "Managers Account for 70% of Variance in Employee Engagement," 8 April 2015, summarizing the State of the American Manager report (gallup.com).

Use people's strengths

Gallup also asked about strengths. Among employees who strongly agree that their manager focuses on their strengths, 67% are engaged. Among those who strongly agree that their manager focuses on their weaknesses, 31% are engaged.

That does not mean you ignore problems. It means you start with what each person does well. Match tasks to those talents when you can. When you give feedback, name the strength first, then the gap.

Sources: Gallup, "Managers Account for 70% of Variance in Employee Engagement," 8 April 2015 (gallup.com).

Protect time and spot the warning signs

Work-life balance was the second most common reason for leaving. Watch for long hours that become normal. Respect days off. Do not send non-urgent messages late at night. Let people shift their hours when the work allows it.

Watch for warning signs too. A quiet person who used to speak up, more sick days, missed deadlines, or less interest in new projects can all mean someone is thinking of leaving. Ask early and listen. Do not wait for the resignation letter.

The Work Institute also notes that some exits are less preventable, such as relocation, retirement and firings. Do not blame yourself for those. Focus on the exits you can change.

Sources: Work Institute, 2019 Retention Report (workinstitute.com).

Your first week plan

Pick one step for each day. On Monday, book weekly one-on-ones. On Tuesday, write down the pay range and raise steps for each role. On Wednesday, plan career talks. On Thursday, list each person's top strengths. On Friday, set your reply-time rule. Then repeat the cycle each quarter and note what changes.

Sources

Work Institute, 2019 Retention Report: Trends, Reasons and a Call to Action.
Gallup, "Managers Account for 70% of Variance in Employee Engagement," 8 April 2015.