Change Your Thinking and Perspective To Improve Talent Retention

I recently had a conversation with a senior executive and successful owner/consultant in the Senior Care field about addressing employee retention challenges.

This executive agreed with the challenge, recognized that turnover rates were exceptionally high (approx. 50%), understood the negative impacts (High costs, poor morale and inability to operate facility wings and beds due to staffing shortages ….) Yet he felt organizations would be reluctant in making improvements as he felt that change would be too difficult to achieve results.

Convincing a senior executive or owner is not easy and requires a strong ROI as this is one of the main deciding factors, (Note: The financial business case of 15-20-25% improvements in retention and absenteeism is strong offering attractive ROIs). This executive recognized that change is necessary in how managers lead yet he was concerned about organization’s managers and people’s willingness to accept the need to change and improve as individuals to successfully deal with these challenges. Given there are excellent support resources available this seems a little like the “You can lead a horse to water but….you can’t make them drink” scenario.

Change is not always easy for people due to different perspectives, backgrounds, beliefs and values…. Persuading organizations and individuals that change in how leaders/managers/supervisors lead to improve employee retention requires a targeted, strategic approach. Proponents must demonstrate the cost of doing nothing, present clear benefits of leadership transformation, and address fears or resistance to change to develop your strategic plan.

Here’s how a advocates, executives and owners can approach this:

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1. Present State: Diagnose the Current Problem with Accurate Data and Insights

• Why: Organizations and executives may not fully understand the link between managerial practices and employee retention. Data makes the issue tangible and urgent.
• How:
• Organizations need to closely examine the impacts of employee turnover and absenteeism from two perspectives so they can determine whether this should a strategic priority:

First:

• Identify operational impacts: lost productivity, morale and disengagement, brand impacts, quality concerns, recruiting challenges and labor shortages, customer experience, ability to achieve strategic growth plans…
• Financial Ramifications: These must include all of the indirect costs as well as the direct costs as these are often overlooked yet are critical to truly understand the financial costs and potential ROIs from improvements.

Example: By improving managerial leadership, you can reduce turnover by 20%, which could translate into hundreds of thousands or millions of dollars in annual savings. What would happen if you could retain 20% more of your high performers this year? How would that impact your team’s stability, productivity and morale?”

Second:

• Collect data that highlights the role of managers in retention, such as Gallup’s finding that managers account for 70% of the variance in employee engagement.
• Share statistics and explain how poor leadership contributes to turnover costs, disengagement, and lost productivity.
• Explore all aspects of leadership such as trust and relationships and potential benefits. Examples: Paul Zak and American neuro-economist showed organizations with high trust cultures reported 40% less burnout, 66% more closeness with colleagues, 70% more alignment with company’s purpose and goals. As well one large retailer realized a 20 % drop in turnover once in the top trust quartile

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2. Organizations Must Realize the Risks of Doing Nothing

• Why: Decision-makers often hesitate to act due to fear of disruption. Examining inaction as a risk can motivate change.
• How:
• Explore how the status quo might worsen the organization’s retention problems, such as losing top talent or increased costs due to constant hiring and training.
• Examine reputational risks, such as employees sharing negative experiences on platforms like Glassdoor or LinkedIn.
• Research-world examples of companies that struggled or failed due to lack of investment in leadership development.

Continuing with the current status quo approach could result in losing high-potential employees to competitors offering better leadership and career support, ultimately impacting your brand and customer satisfaction. It is also important to consider that many organizations are working on how to improve retention of their talent. HR.com’s recent “State of Employee Retention Research found – 57% of HR pros say retention is at least one of their top 3 priorities. Doing nothing can create a serious risk of getting left behind in a competitive marketplace environment.”

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3. Demonstrate the Impact of Leadership on Retention

• Why: Organizations need to understand that managers are pivotal to employee satisfaction and loyalty and play a crucial role in the retention process.
• How:
• Review relevant case studies or research showing how leadership training improved retention in similar organizations.
• Emphasize the correlation between effective leadership and higher employee engagement, productivity, and tenure.
• Highlight the importance of middle managers, who interact most frequently with employees and have the greatest impact on their experience.
• Acknowledge the workplace is changing. Examine how Leadership Development can help organizations be proactive in building accountability and ownership in the retention process, at all levels. Identify how leaders impact the employee experience and create workplaces where employees feel they belong and where leaders/managers meet the future needs of employees to become a preferred employer.

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4. Consider a Low-Risk, High-Reward Solution (For example trial with certain managers or departments)

• Why: Organizations are more likely to act when they perceive change as achievable and low-risk.
• How:
  • Assess a phased or pilot program to test the impact of leadership changes on a smaller scale.
  • Monitor and measure outcomes, such as improved retention rates or enhanced employee feedback. Utilize diagnostics and assessment to help benchmark improvements
  • Explore vendors who can help and what results and success they have achieved
  • Design a step-by-step implementation plan to minimize disruption.
  • Also examine whether solutions need to be customized and tailored to meet your organization’s needs and address specific pain points.

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5. Address Emotional and Practical Barriers to Change and How to Support and Cultivate Personal Change

• Why: Resistance to change often stems from fear of the unknown or doubts about ROI. Addressing these concerns builds trust.

First, identify and understand the roadblocks faced to personal change:

• 1. Fear of the Unknown
• 2. Comfort with the Status Quo
• 3. Loss Aversion
• 4. Effort and Challenges
• 5. Social and Cultural Influences
• 6. Past Negative Experiences
• How:
  • Acknowledge fears and provide reassurance: “We understand change can feel overwhelming, but this program is designed to minimize disruption.”
  • Ensure you explain the need for change along with WHY and HOW change can be successfully implemented. Highlight the benefits of leadership transformation, for managers, employees and the organization
  • Examine and highlight the long-term benefits of leadership transformation, not only for employees and the organization but also for mid-level managers involved in the retention process, so everyone sees personal benefits of moving forward.
  • Outline the support that would be provided to help drive change and skill development so managers understand their roles and build desired habits and behaviors and employees also take ownership in working to create an engaging and rewarding workplace (such as diagnostic tools, activities, exercises, ongoing coaching, templates, checklists and processes to help managers employees adopt best practices)
  • Managers and employees need to be given the time and freedom to address and resolve employee frustrations with agreed to improvements.

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6. Connect Change to Business Goals

• Why: Executives are more likely to act when they see how leadership transformation supports broader organizational objectives.
• How:
  • Tie improved management practices to critical goals such as reducing costs, enhancing customer satisfaction, or increasing profitability.
  • Explore how retention initiatives align with the strategic vision, such as becoming an employer of choice.
  • Quantify the financial impact of improved retention, such as lower recruitment costs and increased productivity. Identify how these changes help build a stronger, more resilient workforce and position the company as a leader in its industry.

Examples:

Research shows that companies with disengaged managers experience 50% higher turnover rates. This could cost an organization hundreds of thousands or millions of dollars annually in lost productivity and recruitment expenses depending on their size.

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The key to driving employee retention improvements through leadership transformation lies in using current data and organizational challenges to highlight the costs of poor leadership and the benefits of change. Addressing fears and barriers with low-risk solutions and clear implementation plans ensures the process feels manageable. By aligning leadership improvements with business goals and industry trends, can present a compelling case for change. This approach develops a strong case for making leadership transformation both necessary and achievable, ultimately enhancing retention and organizational success.