Why Employees Stay

Folio: The Magazine for Magazine Management, August, 2000

When It's a bigger challenge than ever to attract and retain capable employees, it's useful for managers to remember one fact: Employees stay at companies primarily because of managers.

It's that simple. And surprisingly, this fact, according to research, is not necessarily contingent on all other things being equal--things like salary, benefits and commute time. What people want in their careers is a clear understanding of what they're expected to do and why they are doing it, a sense that they are making a meaningful contribution, and a belief that they have a future in their jobs.

And they want to feel that their work is appreciated.

When companies experience turnover, they too often tend to chalk it up as a reality of business. And managers, if they get introspective at all, will rationalize it away--talking about the great opportunities their former employees had, or the better pay, or natural career cycles.

But these days, that's not enough. There is a trend toward making managers directly accountable for high turnover by linking it--inversely, obviously--to compensation and advancement. I don't know how common that is, but I do know this: Companies should train their managers to understand that they should be, and are, the single most important factor in retaining people. For managers, the most important thing is merely to recognize this, and act. It's not enough to create a great product, they also need to create a great work environment. Praise people for good work proactively. Deliver recognition publicly. Be specific. Match the reward to the accomplishment and to the person. Quite simply, let people know that you care. Easily said, true--but also easily done.

But reducing turnover is not just the manager's responsibility. Companies have to define the agenda. They have to stress the importance of retaining staff in ways that go far beyond platitudinous lip service. Without a concerted effort on the part of a company--a policy, with specific objectives--nothing will change. And companies must give managers--many of whom rose to managerial positions not because they are good managers but because they are good at the other things they do--the tools needed for the subtle and complex tasks of leadership.

Tony Silber