Don’t Let Low Turnover Fool You

It's a tricky economy, but don't let the numbers fool you. Voluntary turnover may be down, but that does not mean you should let your guard down when it comes to employee engagement and culture.

A team that stays is not necessarily the same as a team that is motivated and productive.

As a leader, there are some real benefits to your star performers having fewer temptations to leave for a better offer.

So how do you make sure the team you have is actually engaged?

I'm a fan of Patrick Lencioni's perspective on leadership and have referenced his books in my posts on multiple occasions. One of my favorites is The Truth About Employee Engagement (previously published as Three Signs of a Miserable Job). Lencioni says that anonymity, irrelevance, and immeasurability are at the heart of disengaged teams. In other words, employees must feel known, relevant, and like the work they are doing is measurable in order to enjoy their work.

This is subjective, of course. I've been fortunate to work for companies with wonderful cultures, including one recognized consecutively by the Dallas Business Journal's Best Places to Work and Inc. Magazine's Best Workplaces.

Here is what I have found works.

Share results with the people who helped create them.

I've worked for larger organizations where roles are very segmented. Senior team members are the only ones in client meetings, for example. That approach may help people be more efficient and put on a more polished front to the client, but it also means those doing much of the work never get to see the results firsthand. They miss out on the learnings that come from presenting that work, responding to client feedback, and determining next steps. In that case, the onus is on the leader to communicate relevance to everyone involved.

The same applies to the results you share with your board, investors, or customers. Consider how your team contributed, and point out specifics. What did they help the company accomplish? Why does it matter?

Another technique I've used for years is calling out wins as resume-worthy accomplishments. For example:

"The LinkedIn post you wrote for the COO got the attention of a Fast Company reporter, who asked to interview him for a story she's working on about change management in the age of AI. We're preparing for a funding round, and that kind of exposure helps establish the company's credibility. Not that I want you to leave, but your role in shaping executive positioning and visibility is something you should put on your resume."

Invest in the kind of culture that matters to your team.

Many of us think about non-work activities and events as synonymous with culture, but there are many other options. Start by understanding what motivates your team. No need to guess. You can ask them.

Celebrate wins, both individual and shared. Acknowledge them in one-on-one conversations and group settings when appropriate. A Slack channel where team members can recognize each other's contributions gives people another way to express appreciation.

Provide flexibility and support around people's personal lives when possible. That might mean considering parental leave beyond legal requirements or allowing temporary flexibility with in-office attendance when someone has a temporary health issue or a child graduating from high school.

Acknowledging birthdays and work anniversaries can matter, too. The point is to learn what your people appreciate and follow through in ways that are meaningful to them.

Set aside time to talk about how you work, not just the work itself.

You likely already have regular one-on-ones with your direct reports. It's easy for those conversations to fill up with status updates, immediate concerns, and the week's priorities. Make time at least quarterly to align on what success looks like and how to track it. Set annual goals and attach KPIs to them. Make sure each person's performance goals connect to the company's goals.

These conversations are also an opportunity to understand what motivates your direct reports personally. Someone may want more client exposure, experience managing others, or a chance to develop a particular skill. Knowing that helps you set goals that benefit the company and give the employee something they want to work toward.

During volatile economic times, these leadership responsibilities can be easy to deprioritize or postpone. There is always another immediate business concern competing for your attention.

Keep making time for them. A tight job market may be keeping your team in place, but your leadership is what keeps them engaged, invested, and doing their best work.