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Column A is what you do great and Column B is what you do not-so-great. This approach stuck with Guthrie as she left the restaurant world to head up people operations for tech companies. It shocked her that these types of candid conversations were hardly ever happening, and people left as a result.

Guthrie has been watching employees take and leave jobs for over 15 years. Turns out, the reasons people love and hate their work are largely the same across sectors. Step one to retention: Understanding why and how it fails. For example, Guthrie has seen countless companies throw weekly happy hours that start at 4: On the flipside, there are many companies that like to emphasize their rigorous hours by hosting early-bird staff meetings on Monday mornings.

Guthrie has seen these get as early as 7: This forces people with kids to juggle like crazy to get them to school on time.

Everybody has a community outside of the office. So few employers respect that — if you make it a point to, that will bind your employees closer to you. Some companies are beginning to take these best practices a step further and mandate one or two weeks of vacation time without access to company email or tools. You can remove the worry from spending time with your family or traveling abroad.

Generally, almost everyone gets a sense of mismatched chemistry during the hiring process. There is, however, one big reason employees may leave on account of their manager: Loss of confidence — in them or the company. Otherwise, your best and brightest will be on the lookout for opportunities to jump ship. Often, to prevent brain drain, a startup will make a counteroffer to someone who says they might depart. But at that point, the battle for that employee is pretty much over anyway.

You want to go home. You want to have dinner with your friends. Recognizing and protecting against employee departures is only one piece of the puzzle. The best retention strategy involves more than protecting against employee disaffection.

You have to be proactive about cultivating happiness and good will. Below, Guthrie speaks to the strategies startups can employ, beyond the coarser albeit necessary foundations of money and equity.

Build a community with purpose. First and foremost, you have to create a community where people want to spend a great deal of their time. As head of HR and Operations at student network ReadyForce, Guthrie saw a team become incredibly bonded — to the extent that many are still good friends even though some eventually moved to new companies.

This type of community enhances talent and collaboration and makes it very difficult to leave. So how did ReadyForce do it? The same three people would interview everyone for a particular role so that they were comparing apples to apples.

Then they would convene and show thumbs up or thumbs down. Would they go to bat for the person? What would it be like to actually work with them? Conversely, that meant filtering out people who may have been exceptionally skilled but not culture matches.

Every single person you hire will make a difference. Also important to note: But they have a pernicious effect on culture that far outlasts their physical presence at the company. On top of running a very detailed, comprehensive onboarding process, ReadyForce also adopted a unique attitude toward group activities.

And the leadership provided the resources and room to do more creative things based upon those interests. You have to balance the importance of community against the personal freedom of allowing remote work. A popular retention strategy companies use to keep employees happy is flexible scheduling, particularly by letting employees — and especially engineers — work from home.

Employees often get resentful if a remote work policy is perceived to be unfair. Structure a mentorship program that people actually want. Providing a good mentor, and making that relationship natural and easy, goes a long way toward keeping people in a role. Like mandatory fun, pairing people with mentors arbitrarily rarely works. Find someone who has those skills to pair them with and explain the connection.

Would it benefit them to know each other from a learning perspective? Maybe pair them together. What other skills do you want to learn or sharpen, and how can we help you do that? Just asking this question can convince someone they made the right choice by joining your company. The critical thing is to follow through. Record it somewhere, and then make the best introductions you can. Go the extra mile to suggest how these people might work together to make learning possible.

Perhaps advise that they meet a certain number of times a month for a time-bounded period. That makes it sound low-lift, and if they do become close and everything is working well, they can decide to continue the relationship. Keep in touch with the mentor on the progress the employee is making, and then give them a chance to show off their new skills where you can.

Mentorship can also become a useful vector for shortening feedback cycles outside of typical manager-to-employee relationships, which will help you spot potential retention issues earlier. During her time with the Mina and Thomas Keller restaurant groups, Guthrie says she grew to appreciate just how much instant feedback flowed between senior and junior chefs. Not set up for service? Startups could benefit from using mentorship as an opportunity to shorten their own feedback cycles, without making people nervous about their performance.

Especially when there is no formal reporting structure involved, employees are also far more likely to be candid with their mentors and share if they're looking for other opportunities. Bringing in good HR early can make a decisive difference. People should feel like they can ask anything, even the really dumb questions. And you, as a founder or manager, should feel like you can trust them with the deepest, darkest secrets of the organization.

HR is not about algorithms. You need empathy on your team. These are all great qualities, but the single most important trait a good HR person can have is the ability to effectively train managers to handle similar questions and issues, Guthrie says.

The need to train management and provide a sounding board is a strong argument for bringing HR or someone who fulfills these duties into your company earlier than later. Being a founder can get extremely lonely. There are a number of ways to keep your best people, but no silver bullet.

As you think through your own retention strategy, remember the following:. When employees leave because of their boss, it rarely comes from personality mismatches; it stems from a lack of confidence. Building a genuine sense of community is crucial to employee retention.

Make sure your hiring process incorporates and heavily weighs cultural fit. Good mentorship happens organically, and should be directed by employee interests and growth. It also creates another opportunity for a natural, short feedback loop you can definitely use. This can absolutely include HR contractors. An outside perspective can be invaluable for founders who need big-picture reality checks. Tweet Share Post Save.

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This is Why People Leave Your Company | First Round Review

Often, to prevent brain drain, a startup will make a counteroffer to someone who says they might depart. But at that point, the battle for that employee is pretty much over anyway. You want to go home. You want to have dinner with your friends. Recognizing and protecting against employee departures is only one piece of the puzzle.

The best retention strategy involves more than protecting against employee disaffection. You have to be proactive about cultivating happiness and good will. Below, Guthrie speaks to the strategies startups can employ, beyond the coarser albeit necessary foundations of money and equity.

Build a community with purpose. First and foremost, you have to create a community where people want to spend a great deal of their time. As head of HR and Operations at student network ReadyForce, Guthrie saw a team become incredibly bonded — to the extent that many are still good friends even though some eventually moved to new companies.

This type of community enhances talent and collaboration and makes it very difficult to leave. So how did ReadyForce do it? The same three people would interview everyone for a particular role so that they were comparing apples to apples. Then they would convene and show thumbs up or thumbs down. Would they go to bat for the person?

What would it be like to actually work with them? Conversely, that meant filtering out people who may have been exceptionally skilled but not culture matches. Every single person you hire will make a difference. Also important to note: But they have a pernicious effect on culture that far outlasts their physical presence at the company.

On top of running a very detailed, comprehensive onboarding process, ReadyForce also adopted a unique attitude toward group activities. And the leadership provided the resources and room to do more creative things based upon those interests. You have to balance the importance of community against the personal freedom of allowing remote work. A popular retention strategy companies use to keep employees happy is flexible scheduling, particularly by letting employees — and especially engineers — work from home.

Employees often get resentful if a remote work policy is perceived to be unfair. Structure a mentorship program that people actually want. Providing a good mentor, and making that relationship natural and easy, goes a long way toward keeping people in a role. Like mandatory fun, pairing people with mentors arbitrarily rarely works.

Find someone who has those skills to pair them with and explain the connection. Would it benefit them to know each other from a learning perspective? Maybe pair them together. What other skills do you want to learn or sharpen, and how can we help you do that? Just asking this question can convince someone they made the right choice by joining your company. The critical thing is to follow through. Record it somewhere, and then make the best introductions you can.

Go the extra mile to suggest how these people might work together to make learning possible. Perhaps advise that they meet a certain number of times a month for a time-bounded period. That makes it sound low-lift, and if they do become close and everything is working well, they can decide to continue the relationship. Keep in touch with the mentor on the progress the employee is making, and then give them a chance to show off their new skills where you can.

Mentorship can also become a useful vector for shortening feedback cycles outside of typical manager-to-employee relationships, which will help you spot potential retention issues earlier. In our experience, this type of data is usually the least understood and therefore the least utilized by companies. To get the full customer portrait rather than just a series of snapshots, companies need a central data mart that combines all the contacts a customer has with a brand: Tools like Clickfox and Teradata can help marketers gather these data and begin to pinpoint opportunities to engage more effectively with consumers across the decision journey.

This collection effort requires input from people across multiple functions—a complex undertaking, to be sure, but the payoff can be big. Our work in this area suggests that the growth rate of earnings before interest, tax, depreciation, and amortization of grocers that focus on customer analytics is 11 percent, compared with just 3 percent on average for their main competitors. For big-box retailers, the difference is 10 percent compared with 2 percent. Using analytic applications such as SAS and R, and by applying various algorithms and models to longitudinal data, companies can better model the cost of their marketing efforts, find the most effective journey patterns, spot potential dropout points, and identify new customer segments.

Based on its analysis of click-through behaviors, for instance, one regional retailer saw that a particular set of customers preferred digital shopping over physical and always read e-mail on Saturdays, and so the retailer altered its e-mail campaign to send this cohort online offers only on Saturdays.

They can also use these tools to generate automated reports that track customer trends and key performance indicators. Based on its analytics efforts, the company was able to create targeted offers for each—one received information about laptop bags based on her previous purchases while the other received information about suits based on his previous purchases. Already, the companies employing these types of advanced analytics have seen significantly improved click-through rates and higher conversion rates between three and ten times the average.

Careful orchestration of the consumer decision journey is incredibly complex given the varying expectations, messages, and capabilities associated with each channel. According to published reports, 48 percent of US consumers believe companies need to do a better job of integrating their online and off-line experiences.

There is a premium for getting this right. It tapped into underutilized customer data and delivered targeted marketing messages at various points in the purchase-decision process. The bank used the data, plus various personalization and testing tools, to inform changes in marketing campaigns for certain product lines; every next step for every customer was progressively tailored to help the customer take the best action.

These players have perfected the ability to test new user experiences and constantly evolve their offers—often for segments of one. Rather than push what could be construed as intrusive even creepy messaging, the retailer provided Mike and Linda with the most useful information at every point in their decision journey and offered the easiest possible path to purchase and delivery.

One financial-services firm redesigned its mobile app for collecting credit-card applications to incorporate the customer context. The result has been a significant uptick in online applications. Under the direction of conservative senior leaders, teams tend to launch campaigns that take too long to get off the ground and end up revealing few new insights. Instead, they must be willing to conduct lots of small-scale experiments with cloud or proxy website services to pilot new designs and prove their value for investment.

These types of agile, data-driven activities must be supported by an organization that has the right people, tools, and processes.

Many companies will have some of the talent required, but not all, and executives will inevitably face resistance when it comes to introducing lean tools and techniques into their sales, marketing, and IT processes. Their campaign-building processes typically include systematic calendaring, brainstorming, and evaluation sessions to allow for one-week and two-week turnaround times.

And roles and responsibilities are clearly defined. At one bank, for instance, business-unit leaders gather each month to talk about their progress in improving different consumer journeys. As new products and campaigns are launched, the team places a laminated card illustrating the journey at the center of the conference-room table and discusses its assumptions about the flow of the experience for different segments and about how the various functional groups need to contribute: Where does customer data need to be captured and reused later?

How will the design of the campaign flow from mass media to social media and then on to the website? What is the follow-up experience once a customer sets up an account? The team has also appointed dedicated mobile and social-media executives to become evangelists for strengthening the omnichannel experience, helping business units raise their game along a range of consumer interactions. Building an agile marketing organization will take time, of course. Companies likely will need to hire people with skills that differ from the ones they rely on now.

Some organizations have developed innovative, venture capital—like strategies for finding and recruiting the people they need. Staples, for instance, has built an e-commerce innovation center in Cambridge, Massachusetts, to better recruit technology talent from nearby Harvard University and MIT, and it recently bought conversion-marketing start-up Runa to act as a talent hub on the West Coast. New types of information systems may also be required. Generally, though, companies will get the best results from tools that enable large-scale data management and the integration of databases; the generation of next-best-action and other types of advanced analyses; and simpler campaign testing, execution, and metrics.

Companies need to make strategic decisions about the best pathways to build customer value.

Companies can sometimes get over a hundred applications for a single position, so they need to have some way of weeding people out to. This IoT device company offers a way to take care of some typically annoying home issues. Its smart smoke alarm battery stops all those chirps. 10 Crazy Flexible Companies That Understand You Need Freedom to work from home, all while staying connected to team members and the company. In her favorite example of this, she went to Hawaii for a couple weeks while.