October 6, 2021 | 4-minute read (766 words)
Many small company owners devote a significant amount of time developing initiatives to keep their staff happy and satisfied. Nobody likes to deal with continual attrition or turnover, especially when hiring and recruiting, which can be time-consuming, costly and unpleasant. Furthermore, many of us form deep bonds with our colleagues, so it can be upsetting to lose them.
However, while staff turnover might be painful, it may not be as bad for your business as you believe. As per a study from Kellogg School of Management, London Business School and the University of North Carolina, this seems to be the case. The study investigated the link between private equity company turnover and private equity fund performance. Surprisingly, the researchers discovered that "higher team turnover was connected with greater performance in the future," according to the report. The study's authors argued that we must accept change since it is unavoidable.
According to the study's authors, we sometimes dread change even when it's essential, which can stifle our companies. Of course, this doesn't imply you should aspire for a higher turnover rate, but it does show that you shouldn't automatically assume your firm is in peril if some employees depart. Employees that are engaged and contributing are the ones you should try to keep.
What types of employees are engaged?
For some owners, determining which of their employees are engaged at work might be difficult. On the bright side, according to a Gallup survey, employee engagement reached an all-time high of 35% in 2019. According to Gallup, these employees are "highly involved in, enthusiastic about, and committed to their work and workplace."
Check out these Gallup-identified themes if you're seeking to figure out what variables truly boost workplace engagement:
According to Gallup, the CEO and the board of directors oversee the mission, brand, and high-development culture for firms with high engagement. This implies that work is inextricably linked to employment and that leaders are constantly striving to improve. They know where the firm is today, and they're working on a strategy to get it to where it needs to be in the future.
Engagement will suffer if the CEO and other executives are not sufficiently linked to the employees and the company's programs. The good news is that if required, this may be altered. CEOs who are cut off from their employees may devise methods to reconnect with them, understand their aspirations and help.
Leaders are the ones who start the engagement elements
Gallup discovered that managers are taught new ways of working with employees in organizations with high employee engagement, serving less as the "boss" and more as the "coach." Gallup said, "The best organizations have leaders who encourage their teams to solve problems at the local level rather than using top-down commands."
Don't get too worked up if your firm isn't following this path. Many companies have transitioned from top-down management to more coach-like systems, but it takes time and dedication. To increase employee satisfaction and engagement, it's worth the effort.
Managers and coaches are the same
Human resources professionals design programs that demonstrate managers how to develop employees in line with their innate tendencies, and organizations with high levels of engagement have good communication throughout the organization.
This implies that best practices are gathered and distributed throughout the business to be on the same page. This may mean that you designate a set of employees to be part of the network that gathers and distributes queries and answers. This group may meet monthly and have larger staff meetings more frequently to improve participation and ensure that employees believe they've been heard. Whatever method works best for your organization and results in the highest level of participation is the ideal method for you.
Communication is a company-wide effort
The most dynamic companies in Gallup's research "see employee recognition as a means to develop and stretch employees to new levels of success." This necessitates holding managers accountable and recognizing them when they convey powerful statements about the company's values.
This indicates that mediocrity will not be tolerated. Managers strive to be the best they can be, providing their staff with personalized development pathways. They aren't necessarily preparing everyone to take over as manager in the future. It's alright if staff are content to continue doing what they're doing. According to Gallup, "The best organizations believe that not everyone should be a manager."
These findings imply that instead of panicking when employees leave, we should seek to increase employee engagement to keep the people who are contributing and helping us develop.
Managers are held responsible for their actions.