The ROI of Leadership: Reduce the turnover and retain the talent
Photo by Csaba Balazs on Unsplash
Last month, I gave a high-level introduction of the value of leadership development and touched on several ways leadership coaching pays off. But I set the topic of turnover aside — it simply needs its own post.
Why? Turnover is a huge issue that companies of all sizes (and leaders at all levels) face every day. That’s because it’s costly in almost every way — from the money you’ll spend searching, hiring and training a new employee, to the effect it can have on your company culture and team morale.
Great leaders constantly seek ways to keep employees at their companies by keeping them happy, fulfilled and feeling appreciated. Those leaders invest in retention, and investing in coaching is the best way to do that.
We’ll get into that more below, but first…
What causes turnover? (Or maybe who?)
There’s a frequent misconception that it’s a dollars and cents decision. Now don’t get me wrong, employees leave jobs all the time for higher paying positions elsewhere. But far more often, it comes down to their overall happiness, of which salary is a small part.
According to a 2019 report from employee engagement platform Peakon, employees often leave because of managers. When bosses take a “my way or the highway approach” (meaning they don’t ask for or welcome input), their workers choose the highway.
As it happens, though, that defensive posture isn’t altogether the boss’s fault — it’s in his/her/their nature.
People are programmed to be catabolic.
What does that mean? At the highest level it describes the instincts we all have that are designed to ensure our survival. But in the case of a boss or leader, it means being defensive and territorial. It means always thinking you’re right and seeing others as a threat to your leadership or security. It means finding fault, laying blame and pursuing conflict for the sake of winning.
That’s to say, catabolic means creating a stifling, toxic environment — one you simply have to change, by changing your habits and outlook. But you’re in luck.
Consistent coaching makes anabolic possible.
When you have anabolic energy, you’re solutions focused and you seek participation. You invite honest input from your team members at every level. You even welcome them to challenge your ideas and answers. You create the kind of company where people feel valued and want to stay.
This video gives a great introduction to the line between catabolic and anabolic. Watch it and learn to ask yourself: In this moment, am I above the line (catabolic) or below it (anabolic)?
Every leader has the potential to trade in catabolic for anabolic energy and have a positive impact on their company culture. But old habits die hard — and reaching and maintaining anabolic energy takes consistent work and commitment to development.
That’s one reason ongoing coaching is crucial to retention. Here’s another.
Photo by Amy Hirschi on Unsplash
Coaching gives employees a place to vent.
Technology is making the work world more efficient and exciting in countless ways. But one area has paid a slight price — clear, honest, open communication isn’t always practiced and frequent face-to-face talks aren’t planned. And that can be a problem, because communication is still crucial to driving engagement and cutting down on turnover.
Communication problems create a leak in the bottom of a company’s boat — and if management has to take care of it, they’ll spend all their time bailing, none of their time fishing.
You need the right coach, to serve as a communication valve and to facilitate the sharing of feelings (not to mention giving leaders and workers at all levels a safe place where they can vent). This takes the burden of solving problems and resolving conflicts off of management, which frees them up to be more productive.
Leadership coaching can impact a company’s retention in a way that’s rapid and dramatic. It helps leaders discover and embrace their anabolic energy and gives employees a healthy outlet for communicating and sharing — both of which have the effect of making staffs more satisfied and company cultures more positive.
Nothing in the business world stays the same, and to grow and succeed you have to adapt to the changes. Coaching helps employees and company cultures be more resilient and adaptable. That’s why so many companies invest in long-term coaching relationships.