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With employee layoffs, business closings, investment debacles and bankruptcies part of everyday news headlines, most employees are hunkering down, trying hard to focus on their jobs and hope the economic pain doesn't hit them.
Most business owners and organizational leaders are doing the same. But as you can expect, there are always a few business leaders who are a bit too smug and cocky.
They know they aren't the best leaders, yet they believe that the poor economy will keep their employees so fearful and so focused that they wouldn't dream of leaving for another firm. After all, not only are jobs hard to find, they believe their employees should be lucky they still have a job! And when good employees do leave, according to a Saratoga Institute survey, 89 per cent of managers say they believe that employees leave for more money.
However, Saratoga's research supports the many other surveys that demonstrate clearly that money is not the driving force causing people to leave their employment.
At the same time, employee discontent, disengagement and final exit don't occur overnight -- it's a long process that takes weeks, months and even years. Gradually over time, the level of employee discontent increases, the work environment becomes more and more uncomfortable and the employee finally leaves.
It's interesting, though, that these myopic, self-centred leaders rarely look in the mirror and face the real reason why their best and brightest employees choose to leave.
However, if they don't take time to do some self-examination and challenge their own leadership style instead of blaming others, nothing will change. Over time, word on the street will let candidates know which organizations fail to meet the "employer of choice" sniff test and soon, applicants stop applying.
So, if high-performing employees don't leave an organization for money, why then do they leave? What specific leadership behaviours do they confront as they strive to be the best they can be? Several authors have tackled the question of why good employees leave. The following suggestions include some of their ideas as well as some from my own consulting experience.
Leadership hypocrisy - Leaders who are insecure often make disparaging remarks about anyone who threatens them. This is not only focused at external competitors, but is also frequently aimed at their own employees, particularly when an employee advances an alternative view. They complain about the ethics of others while at the same time, engaging in the same behaviour. In other words, the rules of ethics are for others to follow and not for them. High-performing employees can see right through this behavior, will quickly lose respect for their leader and will soon move on.
A broken psychological contract - This occurs when a leader creates an expectation for an employee in order to attract them to the organization. However, once the employee has signed on the dotted line and has begun work, the employee finds that promises made were merely an illusion. They feel tricked and disillusioned. If they can't rectify the situation, in time they will leave and when they do, they'll leave with bad feelings.
Growth and advancement opportunities do not exist - One of the key drivers of high-performing employees is the need to grow and expand their capabilities and expertise. Some may want to climb the career ladder into senior leadership positions, while some may want a piece of the action by gaining corporate shares. Thus, when a leader blocks opportunity and growth, the employee will leave.
Favouritism - Organizational politics is found in any organization but when a leader uses favouritism to assign projects, form teams, and assign work, then high performers feel unrecognized and devalued. Favouritism then causes tension in relationships that should be collegial. The resulting cronyism will cause the good performer to leave.
Loss of trust and confidence - A leader is a leader only if they have followers. And when a high performing employee loses the trust and confidence of a leader, there isn't much that can be done to turn it around. The leader's style of command and control, creating secretive cliques, and/or the withholding of privileges quickly creates a lack of fairness which only adds to the desire of a high performer to leave.
Failure to protect - A leader's job is to provide a safe work environment, to protect their employees from harassment and violence of any kind. Yet many a leader fails to do just that. They can't or won't deal with conflict; they delay investigations or accuse the victim themselves. In some disturbing situations, it's the leaders who are the main cause of employee bullying. When the leader is the bully and employees feel there is nowhere to turn within the organization, they will leave.
Lack of personal accountability - We know the economy is suffering in some areas, but is this the fault of your employees? Just a minute here: Who is accountable for the direction of the company? The leader! Who is responsible for the financial management of the organization? The leader! When leaders blame their own staff for a downturn, there aren't too many high performers or any employee for that matter who will accept a "pass the blame" mentality for too long. They'll leave.
Unrealistic demands - Cutting staff numbers during a downturn and expecting employees to produce the same amount of work sets a dangerous precedent. In the long run, employees will be stressed and overworked, overtime costs will increase and employee absenteeism will take a big jump. All in all, you haven't gained a thing. And in addition, good employees will leave. They can't afford to let work encroach too much on their personal psychological stability. They need work-life balance.
First-time managers and veterans alike need to realize the impact poor leadership has on employees. In my mind, there is just no excuse for poor leadership. After all, there are several well-respected leadership support groups available that you can join and discuss your challenges. There are numerous books available to help leaders identity their strengths or "derailers" and provide guidance for personal development. Finally, with the proliferation of the Internet, leaders can access leadership related research reports any time of the day.
Sadly, those self-centred, "I'm right, you're wrong", blame other leaders just won't do this, nor will they take time to look in the mirror. Unfortunately for these leaders, their lack of self-awareness and failure to practice what they preach just doesn't cut it. High-performing employees will simply continue to leave.
Sources: 30 Ways Managers shoot themselves in the Foot, and How to Avoid Them, Bill Lee, New Oxford Publishing, 2006., The 7 Hidden Reasons Employees Leave, Leigh Branham, Soundview Executive book summaries, 2005.
Barbara J. Bowes, FCHRP, CMC is president of Legacy Bowes Group and is author of The Easy Resume Book: A Transferable skills Approach. She can be reached at
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