October 29, 2015
This is the first in a four-part series on your organizational culture delivered from Connect Media via our “Talent Talk” employment column that Glen Esnard, from 20-20 Foresight Executive Search, regularly authors.
We’ve discussed culture before, but, going deeper, the first question any discussion of culture must address is simple, “Why is it important?”
There are a host if data points regarding the benefits of a supporting culture, but for Talent Talk the key issue is talent retention.
Great Place To Work annually publishes its 100 Best Companies. Key factors in their study are a place where people trust the people they work for, have pride in the work they do, and enjoy the people they work with. Statistically, those 100 best places have a talent turnover rate 65% below their peers.
How significant is turnover to the bottom line? The Center for American Progress (CAP) reports the overall cost of employee turnover is roughly one fifth of employee compensation. But, of course, this is skewed. According to the CAP the cost of senior or executive employee turnover is as much as 213 percent!
Recently, I was coaching a young executive in developing his leadership skills. One area of focus was motivating his team to perform without minute-to-minute supervision. “I have to yell at them to keep them working hard.” I asked four questions. First, “How significant is your turnover?” Answer, “Huge. It is a real problem.” Second, “What happens if you don’t supervise and yell?” Answer: “They don’t work hard.” Third, “You hire great talent. When they start do they work hard without supervision?” Answer, “Yes.” Fourth, “What causes them to change?”
The unfortunate answer was “I don’t know. But I manage exactly like my manager taught me and exactly like his taught him.”
To be clear, this is one group in a division within a global and respected logistics firm. But the overwhelming point is a great brand and recruiting strong talent doesn’t mean you can keep them.
Next post: Is your culture what you think it is?