Most employee retention drivers under management control
Over the course of a career, almost every worker will encounter — or be able to recount — tales of ineffective managers. Although many of these make for good stories, the reality is a strained relationship with a manager, and the environment that results, can have a significant effect on engagement and productivity.
It can also mean the difference between a key employee staying with an organization or leaving.
Managers play a pivotal role in creating a work environment that encourages employee loyalty. According to the results of consulting firm Towers Perrin’s 2005 Global Workforce Study, most of the top 10 drivers of employee retention fall into categories within a manager’s control — from the ability to ensure workers have skill development opportunities to making fair and consistent compensation decisions to connecting with workers on a personal level.
Employees’ perceptions of their immediate managers, however, show considerable room for improvement (see table on right). Effort is required on both the “hard” and “soft” side of managing — from helping employees understand their role in organizational performance to inspiring enthusiasm for work.
Managers receive better scores on holding people accountable for performance targets, but somewhat lower scores for providing goals that are challenging but achievable. These findings are troubling, especially given the emphasis placed by many organizations on improving performance management processes, manager education strategies and technology to manage programs more consistently.
It appears building strong connections between employees and managers is still a work in progress. Organizations have spent a lot of time focusing on leadership and leadership development but, for the most part, managers haven’t received the attention they deserve given the critical role they play within organizations. Why, then, has so little progress been made towards empowering managers to actually achieve these goals? The answer might lie in the nature of management itself.
An engaging form of management
Classic management styles generally focus on managing people to develop and deliver products and services. But what if the focus of management is instead the environment in which employees function and the goal is to foster employee engagement?
In place of traditional management there is “engaging management.” So instead of regarding employees as assets for the purposes of production, engaging managers consider employees as owners of “human capital” they may choose to invest in the enterprise.
In this model, front-line managers become skilled investment advisors for employee capital. Taking up the daily task of creating a productive environment, managers become more effective at:
Improvising: Understanding diverse situations, analysing the factors involved and developing effective ways of working within a changing context.
Embodying values: Reinforcing organization and team values through the manager’s own behaviour.
Empathizing: Understanding and taking an interest in others, showing concern for perspectives, goals and feelings.
Catalyzing action: Causing effective performance while being more concerned with what people achieve than how they achieve it.
Inspiring learning: Creating a climate in which people have both the desire and the means to learn and develop themselves.
Navigating the organization: Comprehending the company’s landscape and forging connections.
Mediating differences: Helping to resolve disagreements in a way that builds productive relationships.
How engaging management works in practice
Consider the following example: A classic management approach to implementing a new program is to send an e-mail, direct employees to a page on the company intranet to learn about the details and suggest they call HR if they have any questions. In some cases a face-to-face presentation, given by someone the employee does not interact with, will also be part of the process.
In contrast, an engaging management approach begins with the understanding that employees rely on their managers to navigate them through change. After all, managers ultimately are responsible for making processes and programs work.
An engaging management strategy therefore leverages the organizational manager network, instead of ignoring it. Managers are provided with tools and training so they can explain a new program, anticipate and answer employee questions and know where to go for detailed information. While managers may not design programs and policies directly, they play a primary role in delivering and implementing them and are responsible for making them tangible to employees.
It is in this delivery of the right work experience for each individual — where managers act as agents, catalysts, brokers, counsellors, friends, information sources and trusted advisors — that engaging management takes root and flourishes.
Put into practice, the resulting improvements in employee retention, engagement and productivity just might provide organizations with the competitive advantage they need to succeed in the war for talent.
Ofelia Isabel is a principal with consulting firm Towers Perrin in Toronto. She may be reached at [email protected].
Manager Report Card
How managers are doing
Towers Perrin asked 5,175 employees in Canada to rate their immediate manager in a number of key areas.
Source: Towers Perrin Global Workforce Study Canada, 2005
It can also mean the difference between a key employee staying with an organization or leaving.
Managers play a pivotal role in creating a work environment that encourages employee loyalty. According to the results of consulting firm Towers Perrin’s 2005 Global Workforce Study, most of the top 10 drivers of employee retention fall into categories within a manager’s control — from the ability to ensure workers have skill development opportunities to making fair and consistent compensation decisions to connecting with workers on a personal level.
Employees’ perceptions of their immediate managers, however, show considerable room for improvement (see table on right). Effort is required on both the “hard” and “soft” side of managing — from helping employees understand their role in organizational performance to inspiring enthusiasm for work.
Managers receive better scores on holding people accountable for performance targets, but somewhat lower scores for providing goals that are challenging but achievable. These findings are troubling, especially given the emphasis placed by many organizations on improving performance management processes, manager education strategies and technology to manage programs more consistently.
It appears building strong connections between employees and managers is still a work in progress. Organizations have spent a lot of time focusing on leadership and leadership development but, for the most part, managers haven’t received the attention they deserve given the critical role they play within organizations. Why, then, has so little progress been made towards empowering managers to actually achieve these goals? The answer might lie in the nature of management itself.
An engaging form of management
Classic management styles generally focus on managing people to develop and deliver products and services. But what if the focus of management is instead the environment in which employees function and the goal is to foster employee engagement?
In place of traditional management there is “engaging management.” So instead of regarding employees as assets for the purposes of production, engaging managers consider employees as owners of “human capital” they may choose to invest in the enterprise.
In this model, front-line managers become skilled investment advisors for employee capital. Taking up the daily task of creating a productive environment, managers become more effective at:
Improvising: Understanding diverse situations, analysing the factors involved and developing effective ways of working within a changing context.
Embodying values: Reinforcing organization and team values through the manager’s own behaviour.
Empathizing: Understanding and taking an interest in others, showing concern for perspectives, goals and feelings.
Catalyzing action: Causing effective performance while being more concerned with what people achieve than how they achieve it.
Inspiring learning: Creating a climate in which people have both the desire and the means to learn and develop themselves.
Navigating the organization: Comprehending the company’s landscape and forging connections.
Mediating differences: Helping to resolve disagreements in a way that builds productive relationships.
How engaging management works in practice
Consider the following example: A classic management approach to implementing a new program is to send an e-mail, direct employees to a page on the company intranet to learn about the details and suggest they call HR if they have any questions. In some cases a face-to-face presentation, given by someone the employee does not interact with, will also be part of the process.
In contrast, an engaging management approach begins with the understanding that employees rely on their managers to navigate them through change. After all, managers ultimately are responsible for making processes and programs work.
An engaging management strategy therefore leverages the organizational manager network, instead of ignoring it. Managers are provided with tools and training so they can explain a new program, anticipate and answer employee questions and know where to go for detailed information. While managers may not design programs and policies directly, they play a primary role in delivering and implementing them and are responsible for making them tangible to employees.
It is in this delivery of the right work experience for each individual — where managers act as agents, catalysts, brokers, counsellors, friends, information sources and trusted advisors — that engaging management takes root and flourishes.
Put into practice, the resulting improvements in employee retention, engagement and productivity just might provide organizations with the competitive advantage they need to succeed in the war for talent.
Ofelia Isabel is a principal with consulting firm Towers Perrin in Toronto. She may be reached at [email protected].
Manager Report Card
How managers are doing
Towers Perrin asked 5,175 employees in Canada to rate their immediate manager in a number of key areas.
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Source: Towers Perrin Global Workforce Study Canada, 2005
