LESSON 5 of 6

Tailor Retention Strategies

What’s the most effective retention strategy? It’s the one that’s custom-fit to the employees
you want to keep.

Identify retention targets

Ideally, you retain every good employee. But in reality, you have limited time and resources.
Therefore, focus first on high-priority candidates and craft specific strategies to reach them.
Whom should you consider high priority? Employees who have elite skills, show high
potential for leadership, or who hold mission-critical roles are among those you want to
work to retain.
However, you also want to focus on strong diverse candidates—including women and
multicultural employees. These employees bring distinctive insights to your business and
help you serve a broad customer base.
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Retain women

*
Barsh, Joanna and Lareina Yee. “Unlocking the Full Potential
of Women at Work.” McKinsey & Company. 2012.

To be fully competitive, your organization needs to retain and develop talented women.
Women represent half your available talent base.
However, many companies struggle to retain women. Studies from the U.S. and many other
societies show that while women may enter a company at the same rate as men, their
numbers drop off over time. Attrition of women employees is particularly high at middle-
management levels.
Studies show that efforts to retain women—particularly through midcareer—confer
immediate and long-term benefits. When women hold a variety of roles in your organization,
acceptance increases for varied problem-solving and management styles. Placing women in
varied roles increases the odds that more women will gain the experience needed to
eventually hold executive roles. Having women in leadership roles also makes it easier to
retain young women because they see the organization as a place where they can build a
career.
To improve retention, be aware of the reasons women leave. Studies suggest women:

 Feel blocked to advancement. They watch male employees get stretch assignments
and high-profile opportunities that position them for promotions. Often male
managers’ unconscious biases move women into internal, service-focused roles such
as human resources, which lead to significant advancement less often.

 Lack powerful networks. Relative to male peers, women’s mentors provide fewer
career advancement opportunities.

 Desire more flexibility. Women more often bear the brunt of caretaking
responsibilities, either for parents, children, or other community members. This can
cause conflicts for women at workplaces where the only way to advance is by putting
in long hours at the office.
To retain more talented women: 

 Analyze the situation. Identify how many women on your team hold positions that
could lead to upper management roles. Talk to women about potential career paths,
and strategize together about what experiences and skills they need to continue to
grow. Meet with women in executive roles for advice on ways to develop and retain
your female talent. 

 Be a role model for flexibility. Sometimes women fear they will be stigmatized as less
committed to their jobs if they take advantage of flexible work arrangements. Model
work/life balance by working from home on occasion, adjusting your hours, or using
some other flexibility option that’s relevant for you. 

 Identify high-potential women. Pair them with a sponsor—someone senior who can
advocate for their advancement.
  Give women accountability for financial results. Historically, profit and loss (P&L)
responsibility is reserved for men. Employees who’ve had responsibility for P&L are
often more favorably positioned for career growth.

 Be results-oriented. Instead of judging employees by how many hours they spend in

the office, focus instead on the results they achieve.

 Eradicate "invisible" barriers to women's success. Take a hard look at your corporate
environment. Barriers to female success can be subtle but real. Don’t assume a part-
time worker couldn’t manage a team, or a pregnant woman wouldn’t be interested in
going on an international business trip.
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Retain cultural minorities

Most managers recognize the importance of hiring talented minority employees—those

whose cultural backgrounds differ from that of the majority of employees.
Diverse teams improve business performance by:

 Connecting with more customers. Employees who are demographically similar to

customers are likely to have an easier time understanding their preferences. And they
are more likely to have ideas and social connections that may help identify, attract,
and keep a wider range of new customers. *

 Innovating. Diverse perspectives stimulate creativity and divergent thought, which

are critical to coming up with fresh ideas and new ways of conducting business. *

 Making better decisions. Teams with diverse opinions challenge the status quo, often
engage in vigorous debate, and consider more alternatives. *
Such benefits only come when you create an inclusive work environment that encourages
minority employees to stay.
To foster a more inclusive environment on your team:

 Uncover your hidden biases. Ask yourself, "Do I consistently assign certain kinds of
employees certain tasks? Do I resist giving some employees particular opportunities?
Do I seek feedback from all members of my team? Are my standards consistent and
fair across all employees?"

 View minority employees as individuals. Make assignments based on employees'

unique individual strengths and preferences, not based on cultural stereotypes. For
instance, if you are a U.S. manager, do not assume that an employee of Asian descent
will be better at or more interested in mathematical analysis than another member of
your team.

 Pay equal attention to minority employees’ input. Engage minorities in important

business discussions.
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Retain different generations

A generation is a group of people who, based on their age, have a common cultural history
and a mindset that accompanies that history.
Demographers have identified the following groups of people most prevalent in today’s
workforce:

 Established workers (born between 1946 and 1964)

 Midcareer workers (born between 1965 and 1979) 

 Younger workers (born between 1980 and 1995)

Each worker is unique. However, age-based commonalities exist among your employees.
Research suggests people’s worldviews are shaped by their teenage years. Each generation’s
common teen experiences have a collective impact on their beliefs about society and the
workplace.
As a result, generations differ in the way they approach work/life balance, loyalty, authority,
and other issues that affect your organization.
Here’s a general rule for each generation:

 Established workers tend to believe: “I want to help change the world, but I also need
to compete to win.”

 Midcareer workers tend to believe: “I can’t depend on institutions. I need to keep my

options open.”

 Young workers tend to believe: “I need to live life now—and work toward long-term
shared goals.”
Though these generational guidelines can be useful, they can’t replace careful investigation
of what a specific employee needs.

Established workers
Established workers (born between 1946 and 1964) grew up amid general unrest and
discontent in many parts of the world. Consequently, many concluded that the world needed
to change—and felt empowered to get involved.
These workers represent a major portion of your firm’s intellectual capital and can
demonstrate the perspective that comes with grappling with day-to-day responsibilities over
many years. Since they frequently had to compete with many others their age for
opportunities, “winning” is very important.
To retain established workers, make sure to:

 Ask them what they need. Merely opening a dialogue can help you better serve this
age group’s needs. For example, older workers may value long-term health care
insurance more than a big raise.

 Support flexibility. Many employees at this age want to work part-time, job-share, or
telecommute. They’re also interested in sabbaticals, unpaid time off, and time for
pursuing opportunities to make a difference, such as community projects. Consider
any of these offerings, as well as “phased retirement,” which allows employees to
reduce their hours in stages rather than all at once.
  Address retirement. This is a major upcoming life event for established workers.
Where possible, offer compensation options, such as larger contributions to a
retirement fund in lieu of a higher salary.
POLL
Which generation of workers do you work hardest to retain?

 Young workers

 Midcareer workers

 Older workers

See Results
EDITOR'S CHOICE

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Midcareer workers
Midcareer workers observed financial crises, high divorce rates, and unemployment during
their teenage years. Corporate downsizing in the 1980s, in particular, deeply limited their
feelings of workplace loyalty and contributed to their entrepreneurial spirit.
As a result, midcareer workers are independent thinkers who are self-reliant, adaptable, and
loyal to their friends. Demographic trends, in the United States especially, have created a
relative shortage of these workers.
As established workers retire, it will be critical for firms to retain midcareer workers. Keep in
mind that: 

 Midcareer workers are “free agents.” They take jobs that will help them advance to
their next jobs. They exhibit short-term loyalties and believe that a career is about
the individual, not the company. 

 They like to change the rules to suit their own needs. For them, work/life balance is
paramount. Work must be tailored to fit with other life commitments.
  They are at a “vulnerable” career stage. They are often in “middle management” at
midlife—a time when traditionally people reevaluate their life choices. These workers
have significant responsibilities, but do not yet have the influence, prestige, and
freedom of established workers. As they contemplate the next steps in their careers,
they may consider leaving to start their own businesses or head for nonprofits.
To satisfy this critical midcareer cohort, consider the following strategies:

 Support skills development. Midcareer workers are most loyal to their own skills. Ask
them what capabilities they’d like to develop, and then connect them with training
and other opportunities to acquire those skills.

 Give multiple options for career development. Don’t assume a simple promotion will
be most satisfying. Midcareer workers may want to move laterally into a different
department or design a new opportunity with your firm.

 Re-recruit regularly. Many midcareer employees continually question whether the

job they have today is still the best opportunity possible. Reassure them by
recognizing their contributions early and often. Let them help solve the company’s
biggest problems.

 Provide opportunities for work/life balance. Midcareer workers value time with their
family and friends, and appreciate flexibility that allows them to make all the pieces of
their lives fit together.

 Keep the door open. Stay in touch with talented midcareer employees who’ve left
your organization. Keep them apprised of developments within your team. They
might come back for the right opportunity.

Young workers
Young workers account for nearly half the employees in the world. Tremendous natural
disasters and the surge in terrorist violence during their teen years led young workers to
believe that the world was random and uncertain. As a result, they are eager to live in the
moment—the only time they feel they can count on.
These workers don’t just use technology—their expectations have been shaped by
technology’s speed, social connectivity, and access to information. As a result, young
workers prefer a more horizontal and networked world than the hierarchical pyramid that
still characterizes most of today’s corporations. As a group, young workers are upbeat,
socially conscious, goal-oriented, and self-confident.
To retain young workers, be aware that:

 Young workers have high standards for themselves and for their employers. They
expect managers to provide them with a customized roadmap for achieving success
and to deliver a near-constant stream of feedback.

 They view work as a key part of life, not a separate activity. They place a strong
emphasis on finding work that’s personally fulfilling. If they don’t feel that your
workplace connects them to a larger purpose, they will take their talents elsewhere.

 They perceive time as more fluid than other generations. While they are willing to
invest the time required to get the job done, they may chafe at the idea of adhering
to a fixed schedule and logging hours at the office for the sake of being present.
To retain young workers:

 Customize their assignments. Young workers relish work experiences tailored to their
interests. They want to be challenged by a range of opportunities and have every
intention of building their own “perfect” careers. Provide them the growth
opportunities they seek, whether conducting a market research project in China or a
six-month stint in your company’s R&D department.

 Provide feedback—and expect it in return. Young workers find frequent

acknowledgment and feedback motivating. Also, solicit feedback on what’s working
and what’s not—through face-to-face conversations as well as online tools. But be
prepared for the feedback you receive. Young workers are adept at expressing
themselves—clearly and often—and are often blunt.

 Think task, not time. Young workers tend to perform tasks quickly, often several at
one time. Instead of tracking office hours, focus on results rather than face-time in
the office. Offer young workers opportunities to contribute to short-deadline,
multifaceted group projects that play to their strengths.
 Consider these workers “paid volunteers.” Young workers’ career choices are often
driven by a desire to play significant roles in an organization or endeavor they
perceive as influential. Position your department’s work as relevant to social issues,
new trends, and innovations.

 Welcome collaborative learning. Young workers love to share their ideas and are
heavily influenced by the opinions and thoughts of others. Consider peer sharing in
which you provide a blog, wiki page, or other virtual gathering spot that allows
employees to congregate, share ideas, and create their own self-organizing groups.