January 23, 2025

Advancing Corporate Yields

Pioneering Business Success

Strategies to enhance employee engagement

Strategies to enhance employee engagement

Leadership development, competitive compensation, and recognition programs can foster engagement and loyalty within the workforce, write columnists Rosario Avila and Andrew McNeil.

The resignation letter lands on your desk from someone you least expected — one of your top performers. As you read their diplomatic words about “pursuing other opportunities,” you wonder if this could this have been prevented. The answer, often, is yes.

As benefits brokers working with companies across our region, we’ve witnessed both the patterns that drive valuable employees away and the strategies that keep them engaged. Your valuable employees are constantly being recruited — here’s what’s really happening and, more importantly, how to fix it.

Problem No. 1 — The leadership disconnect

When employees cite, “leaving for a better opportunity,” they’re often really leaving a poor manager and or environment. The satisfaction breakdown usually occurs in day-to-day interactions, feedback quality, company energy or culture and career support.

The solution — Invest in leadership development

— Require management training for all supervisors, focusing on emotional intelligence and coaching skills.

— Implement regular encouraging one-on-one meetings focused on career development, not just task management.

— Create accountability metrics for managers based on team retention and engagement.

Problem No. 2 — Stagnant growth

High performers need to see a future. A future with you and your company. When career paths become unclear, or advancement opportunities seem limited, they start updating their resumes. It’s human nature.

— Map out detailed career paths for each role, including lateral moves.

— Implement a skills development budget for each employee.

— Create stretch assignments and special projects for high potential candidates.

— Consider creating new roles that align with business needs and employee aspirations.

Problem No. 3 — Compensation misalignment

While money isn’t always the primary driver, falling behind market rates makes employees feel undervalued and more receptive to taking a call from a recruiter.

The solution — Stay competitive and transparent

— Conduct regular market salary reviews. Where does your organization land?

— Implement clear bonus structures tied to performance.

— Consider equity or profit-sharing programs — these are great incentives.

— Be proactive with raises and praise for top performers — don’t wait for them to get lured away by another offer.

Problem No. 4 — Culture and Values Misalignment

When company actions don’t match stated values, trust erodes, and employees disengage.

The solution — Walk the talk

— Perform regular culture surveys with actionable follow-up and practical solutions.

— Share leadership transparency about company challenges and decisions.

— Take swift action on toxic behavior, regardless of the perpetrator’s position.

— Align your policies with your stated values (e.g., don’t preach work-life balance while sending midnight emails).

Problem No. 5 — Lack of recognition

Top performers often receive less attention because they’re reliable and stay on top of things, but this ultimately leads to feeling underappreciated. Please never ignore your best people.

The solution — Build a sustained recognition program

— Implement both formal and informal recognition programs.

— Play with your options — be creative with what you offer.

— Train managers on effective recognition techniques.

— Create peer recognition opportunities.

— Celebrate both big wins and consistent excellence.

Your action plan

The solutions to all these problems do take work but they are not insurmountable.

1. Start with data

— Conduct “stay” interviews with top performers. Find out what is working.

— Analyze your company exit interview trends.

— Survey current employees about their engagement factors.

— Review industry benchmarks for compensation and benefits.

2. Create early warning systems

— Monitor engagement indicators (participation in meetings, voluntary overtime, etc.).

— Track manager-employee one-on-one completion rates.

— Watch for changes in typically engaged employees’ behavior.

— Pay attention to team climate indicators.

3. Build a retention model in your culture

— Make retention metrics part of manager evaluations.

— Include employee development in strategic planning.

— Budget for retention initiatives.

— Create cross-departmental career opportunities.

4. Measure and adjust

— Track retention rates by department and manager.

— Monitor the success of development programs.

— Calculate the ROI of retention initiatives.

— Regularly update strategies based on tracking feedback and results.

Preventing unwanted departures is far less expensive than dealing with the aftermath from them. Every employee who leaves represents not just replacement costs, but lost institutional knowledge, disrupted team dynamics, and potential customer relationship impact.

Keep it in mind — your employees are always being recruited. Your job isn’t to prevent them from having options, but to make staying with your organization their best option.

By implementing these strategies, you will create an environment where top talent chooses to stay, grow, and contribute to your organization’s success.

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