Tag Archives: Engagement

Retaining your Worst Employees is Selfish

Most managers agree that the best companies are comprised of the best employees.    But most managers struggle to apply the concept because it comes with a tough corollary – keeping the best means shedding the worst.

NYTimes.com had an interview not too long ago with the CEO of the U.S. Fund for Unicef, Caryl M. Stern.  She made a point with which many in management struggle.

“I want your brightest and your best. Give me a list. Who are your brightest and your best?” I didn’t tell them how many names. They all gave me their lists, and I said: “O.K., you’ve got one year. At the end of the year, either everyone working for you is on this list, or you’re telling me how you’re getting them there or you’re getting rid of them. If we are going to attract the brightest and the best, then we’ve got to keep only the brightest and the best.”

Consider these points when thinking about how to develop a top-performing team:

Retaining the Worst is Selfish – We want to be liked (his Trumpness excluded of course).  Wanting to be liked is selfish.  But managing should be an unselfish act.  Yes, we have corporate goals to attain, but those goals are achieved by people.  When we help people get the most from their talents we engage the very best in them, they give their very best to us, and we achieve at the highest levels (employee engagement leads to profitability.)  Sometimes, in our efforts to avoid difficult situations and conversations, we do more harm to our employees than good.

The “Worst” Aren’t the Worst – The worst employees aren’t the worst at all.  More likely they are in the wrong place.  One of the points Ms. Stern doesn’t quite make, though I surmise she’d agree with me, is that good people sometimes end up in bad roles (e.g. mismatches with their skills, interests, and passion).  She does state that managers should help people reach their potential.  I am reminded of a bit of wisdom I once heard about reaching one’s potential:

“To reach the top of the next mountain, you must first climb to the bottom of the one you are already on.”

The pivot point is that shedding the worst employees should be an unselfish act designed to help people find the right role where their skills, interests, and passions can be used fully, each and every day.  We owe it our people to apply the same energy and diligence in letting people go as we do when retaining the best.

Einstein’s Theory of Employee Rankings

Want engaged employees?  Want better performance from your employees?  Don’t compare them to their peers. If you do, achievers lose their drive to achieve and under-achievers surrender.

Comparing employees to their peers de-motivates people.  Iwan Barankay’s study supports the conclusion that “telling people about their rank reduces their effort.”  The experiment demonstrated that those who received feedback were 30% less likely to return to work than those who had no feedback.  Of those who returned, those receiving rank feedback were 22% less productive than those receiving no feedback. The Wharton article summarizes: “people who rank highly think, ‘I am already number one, so why try harder?’ And people who are far behind can become depressed about their work and give up.”

Rank feedback is inadequate because the comparison is made against the wrong benchmark.  After all, your products and services must compete with those of your competitors.  It stands to reason your people must be better than the competitor’s in order to “win” in business.  Many a high school valedictorian found the competition at the next level made them average. Their performance hadn’t changed in absolute terms, but in relative terms they lost ground.  According to Einstein,

When a man sits with a pretty girl for an hour, it seems like a minute. But let him sit on a hot stove for a minute-and it’s longer than any hour. That’s relativity.

It’s all relative.  How disappointed would you be if Employee A left for the competition? What about Employee C?

If you must rank employees, the pivot point is to benchmark performance relative to the competition, not one another.

Creating Earth-Shaking Customer Experiences

The single most important aspect which determines the fate of a corporate initiative is the emotional involvement and sustained engagement of employees.  After all, great plans with no one to implement them, fail.  The same is true for plans being executed in different directions.

When employees act as if an initiative is someone else’s responsibility, efforts appear unintentional and their effect will be temporary and minimal.  Bruce Temkin’s recent post illustrates the point.  An airline employee, in answer to a question about the sign above his head describing customer experience, chalks it up as just another promotion.

Whose fault is this?  Likely the company is at fault because immediately before employees commit to a plan, companies must set the stage for success:

  1. Communicate – Not just the what, but the why.  Will the change help attract customers?  Will revenues increase?  How will the change impact the employee’s life?
  2. Invest – It’s simple to create a slogan, hang a banner and mollify your customers (at least temporarily).  But have employees been trained?  Or are they being asked to do more with less?
  3. Back-Off – Do employees have the authority (indeed the mandate) to make the changes?  Or must they constantly seek approval for actions they know will help the plan succeed?
  4. Follow-Through – If the initiative is truly strategic to a company’s success the company needs to ensure it doesn’t end up as another flavor of the day initiative.  When companies fail to follow through they are tacitly telling employees that if they wait long enough there will be a new initiative… why bother?
  5. Acknowledge Successes – One small success, widely known, leads to other small successes.  And then?

But what happens when employees have shared goals, tools, and autonomy to carry out the plan?  When we act together, the results are tremendous.  Seattle Seahawks (and American football team) fans found this out in a game in early January.  The simultaneous cheering of 66,000+ caused the earth to shake… literally.

The pivot point is that companies, by their actions, influence the success of corporate initiatives but employees turn those plans into reality.  Not surprisingly, when companies fail their employees, employees fail their companies.