Earlier, we spotlighted HubSpot as an organization with a stellar corporate culture. Joe Sharron, HubSpot’s Director of Talent Acquisition is back with some advice for your company on keepin’ it real…
As a Talent Acquisition Consultant to many of New England’s fastest growing tech startup companies and a few Fortune 500 behemoths, I’ve seen firsthand what happens when employees start to head for the exit doors in search of new opportunities. More often than not, management teams end up using the “bubble gum in the dam” approach to stop the bleeding. This is, in large part, due to their inability to get to the root of the problem when it first emerges. The quick-fix approach is shortsighted, and often does more harm than good. Read on.
Makin’ it rain (may not be a good idea).
When a company faces retention problems, management’s initial reaction is often to pay people more money to get them to stick around, but this should be a last resort. One of my clients started losing top employees to privately held start-ups who were offering higher pay and stock options. Their solution? Boost everyone’s pay. Not a good idea. Throwing money at your employees might hold them over temporarily, but if they aren’t truly happy being a part of your organization, they will be looking for other opportunities (unless they’re gold-diggers) on the side, and when they find a company they are better aligned with, they might even end up leaving for less pay. So how do you get them to stay with your crew?
Let them stand under your (corporate) umbrella.
Strengthen the culture of your firm and your employees will begin to hold themselves and one another to your corporate values and traditions, ultimately resulting in higher retention rates and creating a solid team. I sat down with my client’s senior management team and advised them to offer competitive salaries in line with industry standards, but more importantly to take big steps to improve the company culture. For example, I recommended that they become more transparent with employees, focus their attention on improving morale by recognizing good work, and importantly, that they support employees when it’s most needed.
Keep it real.
The best way to avoid retention problems and to develop a strong culture is to start with the front end of the equation, which is talent acquisition. I’ve seen countless job applicant assessment formulas, predictive analytics and competency tests, but I want to know how many of you pay close attention to cultural fit when you interview a job applicant? This is, hands down, the most “real” way to tell if an employee will be around for the long haul.
It’s all about the Benjamins, baby…(the Ben Smiths, that is).
Example of a great cultural fit:
Ben Smith (@TheRealBenSmith) is a HubSpot employee working with customers to keep the churn down and he does a remarkable job – last I checked it was hovering around 2%. Of equal importance are Ben’s contributions to the HubSpot culture with his honesty, integrity, openness, transparency and the positive attitude he brings every day. These are the values we saw in him from Day 1. These values were as important, if not more important, than his experience and background in the hiring process.
You better check yourself before you wreck yourself.
When the unemployment numbers dip and the talent wars heat up, your best bet is to hire people like Ben Smith and work to strengthen the culture of your organization before it’s too late. Money should not be a driving force behind retention of your best talent, and if it is, you might be doing something very wrong. And on the hiring front- if your corporate culture is alluring and strong enough, it won’t be hard to get top candidates to… “holla back”.
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I agree with Joe Sharron’s take on this issue. Studies show that compensation is typically ranked 3rd-5th on the list of what employees seek in an employer. While compensation is a factor, as long as the comp is competitive, most employees are more concerned with the nature of the work experience and company environment. Specifically, am I being provided with the resources, tools and support to succeed in my role; will I be treated with respect and dignity; and will my contributions be recognized and valued.
If your company provides that type of work environment, most employees won’t be running out the door chasing a few more Benjamin Franklins.
Alan brings up many good points with respect to retention.
Published at The Harvard Business Review ( http://ow.ly/17AN9 ), Teresa M. Amabile and Steven J. Kramer recently conducted a survey of employees and employers and found most Managers believe recognition is the number one factor contributing to employees being enthusiastic about work – makes sense right?
Well the survey also asked employees what makes them enthusiastic about work and you’d be surprised to learn the answer is Progress.
@joesharron
I have always been amazed at the power of “thank you”. As the director of a government organization where pay and benefits were totally outside of my control, I found saying “thank you” and meaning it did wonders for morale, productivity, and loyalty.
The father of “TheRealBenSmith” is extremely proud!
Great article, Joe. So true- getting a pat on the back feels great, but nothing inspires toward productivity like knowing there are no roadblocks in your way and that you have all the tools and support you need to make progress.
On that note, I think more companies should invest in providing educational tools (particularly in the technology arena) for employees. It’s amazing how many employees are hindered by such small roadblocks as inability to use a basic function in Word or Excel…
Gillian I agree and to add to your statements I’ve also witnessed first hand employees not being utilized to their fullest potential.
Smart executives challenge and reward employees and give them the tools to see real progress.
Doing so allows you to promote from within resulting in lower attrition, higher morale and lower cost per hire figures.
Great article! And how true! Transparency is the best way to yield trust and defining cutlure is critical, expecially when it come to acquisition! Thanks for the great read!!