When an employee leaves, it’s painful. But when a trusted executive delivers their resignation letter, it can be downright brutal. Not only is replacing them expensive – but there are also issues of lost productivity and weakened morale.
You simply cannot stop every leader from resigning. That said, as an executive search firm in Sacramento, CA, Pacific Staffing can tell you that it is vital to invest in reducing turnover among executives in the future to minimize the impact of too much management churn.
To do so, you must first take a step back and examine the reasons why top executives quit:
The Job is Not What They Expected
Many times, organizations will make the mistake of overselling a position or not talking about the true challenges of the work. However, once an executive is on the job, they will quickly become aware that things aren’t what they appeared to be at the outset, creating a sense of both dissatisfaction and mistrust. What’s worse, they will start to wonder what else is being lied about.
When hiring someone for a leadership position, companies must be upfront about the good, the bad and the ugly. Being truthful when selling the opportunity will not only ensure you wind up hiring the right executive for the job, but that they want to stay with the company once on board.
Not Enough Growth and Advancement Opportunities
Executives are generally ambitious people. Once they’ve been performing in a position for a while and feel like they’ve contributed all they can, they will start looking for a new challenge or an interesting project with more responsibility. Those that don’t feel as if their current companies can offer them those types of opportunities will simply move on so they can achieve their career goals.
A Responsibilities Mismatch
If you have a manager who delivered in one area, and you want to move them to another area that is underperforming, don’t expect the exact same results. First, they may not have the skill set or even the desire to work where you want them to. And secondly, by moving them, you are at risk of losing them altogether. Get their input first before restructuring their job responsibilities.
Lack of Trust in Senior Leadership
Your managers have a lot on their plates. But if they begin to realize there is no strategic vision in place or that senior leaders are making bad decisions, then they may wind up leaving. Instead, when strategizing and making serious decisions about the direction of the company, solicit their feedback and take it seriously.
Too Much Stress
Even those in leadership positions want to live a balanced life. So if executives begin to feel like you expect them to be connected and work around the clock – forcing them to choose between their career and their life – it will lead to a toxic culture and high management turnover.
Weak Compensation
Executives know their worth. And if your management compensation plan is not keeping pace with the competition’s, then you can say good-bye to your top leaders. While money may not be everything, offering at least market value compensation (if not a little more) is critical for retention.
About Pacific Staffing
If you’ve had an executive recently leave your company and you’d like assistance with the recruitment process, Pacific Staffing can help. As a leading executive search firm in Sacramento, CA, we have extensive experience sourcing, evaluating and helping companies hire mission-critical professionals for high-level positions.
To learn more about how we can help your organization, contact us today.