Retention is the new Recruitment

Key takeaways

1. Put a figure on regrettable turnover, because the board will listen to one

   Alex Cass said research estimates the cost of each leaver at 50 to 150% of the role's annual salary. Cass's worked example used 10,000 staff on an average of £40,000 and a 20% regrettable turnover rate. At the low 50% estimate that comes to £40 million a year, and cutting turnover by one percentage point saves £2 million.

2. Look for pockets of turnover, not just the overall rate

   The overall figure hides teams where people never leave and teams where they leave fast. Slice the data by length of service, seniority, gender, age, the leader in charge and timing, such as a wave of leavers after bonuses are paid. Then check whether those pockets match high sick leave, low take-up of annual leave or stress-related claims.

3. Ask people why they might leave while they are still there

   Cass runs stay interviews once a year with people across the team, not only direct reports, asking what keeps them at work, what is not working and what would make them leave. With enough trust, people give concrete things you can act on.

4. Treat line managers as your main retention lever

   Charlotte Schaller said many reasons people leave can be avoided with the right manager: feeling uninspired, wanting more feedback, clearer direction or a path to progress. Review your managers' skills gaps first, using anecdotal evidence, 360 feedback or assessments, before deciding where to invest in training.

5. Do not assume your best performers will make good managers

   Doing well in a current role does not always lead to success as a people manager, because the skills are different. Schaller said many organisations promote on performance data and gut instinct without a clear idea of what high potential means.

6. Check your employees know your EVP, not just your leaders

   Adithi Jagannathan often finds leaders can describe the employee value proposition while staff have no idea what it is: a communication gap more than a definition gap. An EVP should be authentic, hard to copy and ready for the future, and communicated differently to different groups of employees.