There's a crisis afoot.

The economy is improving. Unemployment is down; jobs are up. And you know what that means, right?

Everybody's looking to hire good people. Maybe your good people.

Retention has become a crisis, and your best employees are at its center. Your top performers—the ones whose contributions are having the biggest impact on your bottom line—are likely to be targeted for recruitment by the competition. For employees with skills and a good track record, opportunity is everywhere.

In today's economy and talent market, keeping high performers isn't just an HR issue. It's critical to your organization's success.

Here's how to get strategic about employee retention.

Know your enemy.

The enemy is turnover, and your first mission is to find out when and why it happens and where the impact is greatest. Start with existing data.

• Which line managers have the greatest turnover? Which have the lowest?
• Same for job categories. Which generate turnover? Which are longevity-friendly?
• Study exit interviews. Why did people leave?
• Analyze the cost. Which employees are costliest to replace?

And then...

Plan.

Once you understand turnover in your organization, it's time to plan your response.

• Set clear goals. What do you want to achieve?
• Base your plan on real-world information. Consider a survey or a series of employee focus groups. What do they want that you are not currently offering? What would make them stay?
• Study the research. What retention strategies have worked elsewhere?

Diversify your approach.

Your employees are individuals, with differing preferences, goals, needs and desires. As a result, you'll need an approach that makes use of a variety of tactics which can be adapted to meet the needs of each individual in order to keep them happy and engaged.

Knowing the characteristic desires of people of different ages and stages of career can help narrow the field as you assemble the tools you'll use. Thinking in categories is a good place to start.

For top-performing managers, it all hangs in the balance.

Your top managers are likely balancing the demands of family life with workplace challenges such as long hours and travel. Help in striking that balance can go a long way toward making these highly motivated, often stressed-out workers happy.

In Hubspot's Consumer Omnibus Survey, 53 percent of respondents said a flexible work environment was the most important employee benefit – even outpacing a competitive salary.

As you form a retention plan for this group, consider:

• Telecommuting options
• Flexible start/stop times
• Compressed workweeks
• Incentives to USE accrued vacation time

Chart a path for younger managers.

Younger managers are focused on the future. What impact can I make? How can I advance? To encourage them to make your organization a home, rather than a stopping place, help them chart a career path within the company.

• Supervisors should sit down with each employee, especially those in this group, and create a 3- to 5-year plan.
• Work with young managers to identify goals that align individual needs with company goals.
• Meet quarterly to review their progress and adjust goals.
• Communicate rationale for pay scale decisions.
• Provide professional development, educational, cross-training and mentoring opportunities which allow them to grow within your organization.
• Be clear about the timing of opportunities for promotions, bonuses or raises. Let them know what to expect.

Win the culture wars to hang onto millennials and Gen Z.

Younger knowledge workers and younger managers seek meaningful work and a culture that fits their approach. New to the field, they like to give input and be heard, and they often appreciate a culture of trust and collaboration.

They also are restless and eager to learn — and avoid stagnation like the plague. Offer these workers:

• Opportunities to learn and acquire new skills.
• "Stretch" assignments that take them out of their comfort zone and allow them to see the big picture.
• Cross-training. This not only stimulates them, it helps with your staffing needs!
• Up-to-the-moment technology to work with, and training that helps them stay on top of new high-tech trends.

Reevaluate compensation strategies.

Meaningful work and flexible scheduling are climbing the priority list for many workers, but that doesn't mean salary, retirement and other compensation forms can take a back seat.

To reevaluate compensation:

• Make sure salaries are competitive, and reevaluate the data regularly. A salary increase plan can keep employees working hard toward their next raise.
• Keep health benefits in pace with rising healthcare costs, and offer health initiatives or wellness plans to encourage healthier lifestyles.
• Offer a solid retirement plan. A Willis Towers Watson study found that employees who liked their retirement plan were 2.5 times more likely to stay with that employer than those who didn't.

Create real opportunities for career development. While not a "benefit" in the traditional sense, the majority of younger workers consider career development one of the most important aspects of a company – but less than half of workers say their current employer provides meaningful development opportunities.

Win the hearts and minds of your new hires.

It goes without saying, but we'll say it anyway: The best retention plan starts with a good hiring process – because a good hiring process yields people who are a good fit for the job.

Once they're in the door, however, the battle to keep them begins. Most newly hired employees decide within the first 90 days whether your company is a place they can stay. To help them decide in your favor, and keep new talent in the fold, offer them mentoring, inclusion, a sense of a future and a chance to feel their work is meaningful and needed.

• Show them, from day one, how their work supports the company's mission.
• Offer a road map for a career within your company, and revisit it at each review.
• Assign a mentor, and make sure the mentor is rewarded for making his mentee feel at home.
• Check in often to reveal stumbling blocks early, before they lead to dissatisfaction.

Mentor the leadership you have.

"Employees don't quit jobs," says Steve Miranda, Managing Director of the Center for Advanced Human Resource Studies at Cornell University. "They quit managers." Miranda says the experience of most employees is affected more by the culture their manager creates than by the larger company culture.

Train your managers to create a retention-friendly work environment. Here are a few skills you can help them develop:

• Sending positive "micro-messages" – small activities that convey positive messages (both verbally and non-verbally). Examples include making direct eye contact; encouraging participation from all employees; and asking questions to develop rapport.
• Listening without interrupting. When employees know their ideas are heard and valued, they feel more tied to the organization.
• Saying "thanks!" often. Recognizing employees' contributions helps them stay engaged, motivated and loyal. Whether it's a heartfelt "thank you" or more formal recognition, find a reason to acknowledge both individual and team accomplishments every day.

These actions may seem small, but they can have a huge impact on employee job satisfaction – and ultimately, retention.

Know when to embrace an outside perspective.

A staffing agency can be your best partner in supporting employee retention, every step of the way. From helping you find the right match for direct positions, to supporting your staff at times of pressure and flux, a staffing agency can provide the outside perspective your business needs to thrive.

• Better matches set the stage for longevity.
• Temporary support relieves pressure on staff, preventing burnout, enabling time off and promoting work/life satisfaction.
• By offloading or outsourcing low-priority tasks, core employees can take on more rewarding challenges – and keep growing within your organization.
• Supporting your team with extra hands when the pressure is on shows them you value their contributions, their time and their sanity!

With study, focus, strategy, persistence and the right allies, today's business leadership can conquer any problem. You have the tools you need at your disposal. It's time to end the retention crisis.

Sources:
Bill Conerly on turnover costs: https://www.forbes.com/sites/billconerly/2018/08/12/companies-need-to-know-the-dollar-cost-of-employee-turnover/#47378d8fd590

Lou Adler on salary increases for switching jobs: https://www.inc.com/lou-adler/dont-change-jobs-unless-you-get-a-30-increase.html

Hubspot Consumer Omnibus: https://www.quantumworkplace.com/future-of-work/why-workplace-flexibility-is-the-key-to-employee-retention

Deloitte/Accenture on meaningfulness: https://gethppy.com/employee-engagement/retain-employees-meaningful-work

Willis Towers Watson cite: https://www.forusall.com/401k-blog/employee-retention-benefits/