My wife’s friend, “Susan,” is frustrated with her CEO and is looking for a sales position at another company. Susan makes well into the six figures, but she is willing to leave her job and take a 50 percent cut in salary to work for a more inspiring leader.
Susan’s attitude isn’t unusual. According to a new study by Deloitte Consulting and Forbes Insights, 66 percent of employees who plan to quit blame “ineffective communication.” If you listen carefully to Susan’s frustration, it all comes down to communication—or the lack of it.
My wife and I recently had lunch with Susan and I quizzed her about her decision. After all, it’s a very tight job market and it’s unlikely she will get anywhere near her current compensation. I asked her, “Why are you looking for another job?” You’ve been the #1 salesperson several times, you can work from home on most days, and you make far more money than the majority of Americans. What could possibly be wrong?”
“My CEO has never said one nice thing to me,” Susan responded. “He’s never shown me any kind of praise and he doesn’t make me feel valued.”
“Lavish praise and people will flourish.” I’ve heard this frustration time and time again, especially from top producers. High performers want more than a paycheck. They want to know their work has meaning and that they are valued. Giving praise and encouragement is one of the “7 Secrets of Inspiring Leaders” I’ve written about in a previous column. I’m still amazed that so few leaders understand the power of this free and simple technique to retain and motivate top performers.
Virgin CEO Richard Branson is one of the most outspoken advocates of using praise in the workplace. “Lavish praise on people and people will flourish; criticize and they’ll shrivel up,” he once said. Branson and his senior managers hold an annual “Stars Dinner” to recognize top performers and celebrate their achievements. Branson says he hasn’t missed one yet.
Susan doesn’t need an annual dinner; she needs small daily doses of inspiration. It could be something as simple as a company-wide email praising Susan for her unprecedented accomplishments. It could be an event or meeting celebrating the fact that Susan is the highest-grossing salesperson, another accomplishment that has never been done in the company’s long history. The CEO could ask Susan to take the spotlight and share her techniques at the next off-site sales meeting. Susan’s a star. Make her feel like one.
Losing top talent puts a company’s future in doubt. By failing to take simple steps to communicate praise and to show Susan that she’s appreciated, her CEO risks the following:
- He will lose an employee who has generated millions in reoccurring revenue for the company.
- He will lose a top-grossing salesperson at a very competitive time for his industry. Susan’s remarkable skill at closing sales will walk right out the door.
- He will lose the first female to make “Presidents Club” (top 1% performing salespeople). This role model will vanish at a time when the company is seeking passionate, qualified, and high performing female candidates for its sales division.
Susan is not asking for more money. She is not asking for flexible hours (she already has it). She is not asking for more time off (she works twelve hours a day and rarely takes a vacation). She is not asking for another position at the company. What she is asking for is something she would expect from any positive relationship, personal or professional—a person who makes her feel good about herself.
You might believe this doesn’t apply to you right now because jobs are scarce. According to Deloitte, “Companies cannot neglect their talent and retention strategies out of a false sense of security that employees have few options in a tight job market.” Top performers are still being recruited in a variety of fields and, as the economy improves, those uninspired employees will be aggressively seeking the exit. If they’re like Susan, they will even accept less compensation in return for a more empowering culture.
According to Deloitte, employee retention should not be delegated solely to the HR department. “It should be driven by business leaders.” Yes, that’s you. Show people the respect they deserve, ask for their feedback, praise them frequently, and demonstrate—through words and actions—that you care about them. In return they will be grateful, loyal, engaged, and more likely to work as a team. That’s a trade you should be happy to make.