How do you manage startup turnover?
It stinks when people leave, but it’s inevitable.
To tackle startup turnover, it's vital to refine your hiring process, effectively recognize and reward employees, and ensure open communication and opportunities for growth are in place.
Here’s how you can practically implement these strategies to keep your team stable and motivated.
Hire the Right Fit
A startup is only as good as its people.
Employee turnover can lose you time, money, and productivity.
To mitigate this, it's crucial to hire individuals who not only have the necessary skills but also fit well with your company culture.
Ensuring alignment from the beginning can prevent future mismatches that lead to turnover.
Take the time during the hiring process to assess both technical abilities and cultural fit through various stages of interviews and interactions.
Provide Feedback & Recognition
It’s easier to do good work when good work gets noticed.
Regular feedback and recognition are vital for keeping employees motivated and engaged. People want to know how they're doing and appreciate being recognized for their efforts.
Implement a structured system for feedback and recognition that makes employees feel valued and seen. This can range from formal performance reviews to informal daily acknowledgments of their hard work.
Offer Growth and Development Opportunities
What got us here won’t get us there.
To retain talent, offer clear paths for growth and professional development.
Employees are more likely to stay when they see opportunities to advance their careers within the company.
Establish transparent career ladders, provide professional training, and consider promotions and role expansions that allow employees to grow alongside the company.
Build Trust and Transparency
When I joined Plastiq, some weren’t happy that I was tapped for an executive role two weeks after joining.
I made a request: Default trust.
Until there was a reason not to trust my leadership — missed goals, poorly executed campaigns, a pessimistic tone — default to trusting your fellow teammates and me.
Trust and transparency within the workplace foster a sense of security and belonging among employees. Communicate openly about company developments, challenges, and successes.
Allow employees to voice their concerns and suggestions and ensure that they feel their opinions are heard and valued. This open line of communication can significantly reduce misunderstandings and dissatisfaction.
Offer Flexibility and Agency (Not Autonomy)
What you actually want on the team is agency, not autonomy.
Autonomy = the freedom and independence to make decisions and govern oneself without external control or influence.
Agency = the capacity to act independently within the team.
Communication and collaboration are a part of the job. Autonomy doesn't require communication.
Allowing employees to have flexibility over their schedules and work arrangements can lead to higher job satisfaction and retention.
Consider options like remote work, flexible hours, and results-oriented work environments where employees are judged on the outcome of their work rather than the process.
Address Issues and Concerns Promptly
The longer you wait to act, the worse it gets, the more negative the impact, and the less trust the team has in you.
When issues arise, it is crucial to address them promptly to prevent escalation.
Timely resolution of workplace conflicts, performance issues, or team members' dissatisfaction helps maintain a positive and productive work environment.
Encourage an open-door policy where employees feel comfortable bringing their concerns forward, knowing they will be taken seriously and addressed efficiently.