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The art of letting go

Retaining top performers "at any cost" might prove expensive

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Praneeta Mehra, a senior HR executive with an IT services firm is in a major quandary. Two top performing project leads in her organisation have given feelers of exiting the organisation in a few months. They supposedly are on the lookout for "greener pastures", but Mehra has been told by higher-ups to retain the two in question "by all means" as they are "highly efficient and productive" in the system.

But increasing the compensation of these two project leads manifold would imply keeping their teams away from what is due to them. It’s a case of appeasing two leads versus working towards the benefits of the entire team.

Retaining top performers is essential for any organisation. But does it really merit an organisation to go through great lengths just to hold back one employee from quitting? That too at the expense of others in the company?

“Not really”, say HR experts. Arpita Kuila, head HR, NEC Technologies India, said, “The cost (of retaining top performers) must never be too costly for the organisation in the long run.”

Although it is advisable to retain the best to ensure customer satisfaction and effective succession planning, organisations should not compromise on their values or embark on an appeasement drive “that may set a wrong precedent and irk others in the organisation,” says Francis Padamadan, senior director – Asia Pacific, RPO &BPS practice, KellyOCG.

It is necessary to evaluate the cultural fit of the key performer in question, to check whether he/she is compatible with the team, and the organisational mission, values and culture before going great lengths to incentivise the individual, feel experts.

Retaining someone who is not an endorser of the company’s values can turn toxic. “Such individuals would also turn out to be the wrong role model to showcase in the company,’’ says Kuila.

According to Shirin Salis, vice president HR, Ingersoll Rand India, in a scenario where a top performer is unable to continue working as a team player, it is better to let that individual explore other opportunities. “Forcing or providing exaggerated incentives can only be termed as short-term fixes that usually don’t yield long-term results.”

For an organisation to succeed, it requires individuals who are not just productive, but those who are also committed and emotionally engaged, feel experts. Salis says any company which pivots around individual brilliance is bound to face friction across business verticals, with a negative impact on overall morale and output. “Successful companies are built by robust team players. In case a top performer does not meet the desired characteristics such as a positive mindset, strong ethics, collaborative, is a team player and true endorser of the company values, then retaining that employee will only dilute the overall morale of the company,” says Salis, adding that an authentic key performer will always be a positive influencer and a true endorser of the company.

To retain key employees, compensation is not always the best bet a company can lay. The "motivation" factor is equally imperative. “Often, compensation is just one of the many reasons for a top performer’s departure. It is important for organisations to evaluate the Employee Value Proposition (EVP) that they are providing their workforce and how they can improvise to create a stronger proposition. Employees tend to look at EVP from the prism of flexi-work timings, bonuses, allowances like medical and travel, retirement packages, stock options, etc.,” says Padamadan.

Then there exist other motivators such as challenging roles and assignments, says Kuila. ‘’Some key performers may want to work on new areas and technologies. The organisation can create the platform for such opportunities,” says Kuila.

According to Salis, the best way to retain talent is by understanding the work environment, career aspirations, and encouraging conversations amongst peers and business verticals.

“Every employee is motivated by different variables and retention strategies should be designed accordingly,” says Salis.

Recognition is one of the foremost steps towards retaining performers, says Kuila. “If they feel valued, recognised and that they are contributing towards the growth of the organisation, it makes a great difference.”

Secondly, creating channels for open communication between employees and the management is another way of attempting to retain talent. “It is important to have an open-door policy that encourages employees to speak frankly with their managers. The organisation needs to communicate their mission, vision and goals to keep employees rationally and emotionally connected to the company. And lastly, organisations should set realistic expectations to ensure that key performers are aware of the benchmarks and can see the results of their hard work,” says Salis.

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