How to manage employee retention: Lessons from Marsh & Partners

More than 75% of the CEOs of Fortune 500 companies were promoted from inside of the organisation. Whether they were promoted on the basis of a family dynasty, through merit, or a combination of both, CEOs have an average of 16 years of experience within their organisation. In fact, approximately one-third of these CEOs are ‘lifers’ — individuals who have worked from the bottom up within their company.

Regardless of industry, people are a company’s most valuable asset and investment. The best CEOs don’t just have prior experience with their companies — they continue to grow, learn, and self-analyse within them. These CEOs will be true leaders; they will be able to inspire loyalty and consistently acquire the best work from their employees.

Bronwyn Condon, managing partner of Marsh & Partners, has worked with the firm since her graduation from college. As managing partner of the accounting firm, she has focused both on developing a strong team and fostering individual relationships with her employees. By focusing on employee development, mentorship, and opportunities for growth, she has been able to build a company culture of trust and loyalty, and she has been able to deliver the best in talent to her firm’s clientele.

Analyse your turnover 

Australia has seen increasingly high staff turnover rates in the last few years. In fact, staff turnover rose 29% year-over-year in 2016 alone. Modern employees have more options, which is leading to more job-hopping and more job-hunting. Not only is high staff turnover inefficient and expensive, but it can also disrupt the continuity of service that customers have come to expect. Employers need to be able to procure and retain the top talent: otherwise they will only find themselves caught in a ceaseless treadmill of employee training.

Every time a business needs to replace an employee, it costs approximately six to nine months of that employee’s salary. A significant portion of this is wrapped up in training, during which time the new employee will need to adapt and grow into the role. But that isn’t the only cost of high turnover. Companies with high turnover rates also lose their best employees — the employees who are most likely to build value for the business.

Business leaders need to be willing to analyse their turnover rates and identify areas in which the business may not be performing to its full potential. A significant portion of employee turnover is due to management; when management styles conflict when an employee’s goals, the employee will often leave. Marsh & Partners has devoted itself to the hiring of individuals who fit into their people-centric business model. To that end, they have focused on hiring individuals who are proactive self-starters and who can align with the company’s culture.

Support each staff member

Every staff member is unique. They have their own career goals and personal desires. It isn’t only the responsibility of the employee to support the business; it is also the responsibility of the business to support the employee. Employees will leave when they feel that their career is at a standstill, when they aren’t able to devote enough time to their personal lives, or when they feel ignored or unrecognised by their management. It is your job as a leader to resolve these issues to avoid losing talents.

To that end, Bronwyn was able to create a comprehensive mentorship program at Marsh & Partners to ensure that the goals of her employees aligned with the goals of the business. By helping her employees reach their own personal goals, she ensured that they were able to dedicate enough time to producing the best.

Employees will put much more into their work when they feel valued — and building this type of relationship with an employee starts with empathy and self-analysis. Mentorship programs cut both ways, by giving newer employees access to expertise and guidance whilst ensuring that senior employees remain connected and engaged.

Find a peer network

True leadership requires constant improvement. Just as new staff members may need senior mentorship, business leaders often need expert feedback in order to continue to grow. Connecting to a peer advisory network gives a leader the opportunity to see things from a different point of view. Peer networks can offer key insights into the strategies of other industries and can offer vital third-party, neutral analysis. By being exposed to different management styles and business strategies, a leader will be able to develop beyond the confines of their own company.

Through TEC, Bronwyn was able to further her development as a leader and partner in Marsh & Partners. One-to-Ones with Bronwyn’s TEC mentor fulfilled a valuable need for her own mentorship, through which her concerns and issues could be voiced to an experienced third party. Through this partnership, Bronwyn was able to work through many solutions for her business, make better decisions and personally develop her own leadership skills. Self-analysis is incredibly important for all leaders. No one is infallible, and every leader serves as an example for their employees.

Through TEC, leaders can begin transforming themselves and, in so doing, transforming their businesses for better results. Contact TEC today to begin your own journey.

 

4 Insights into what great CEOs do differently

When less-than-optimal leadership costs businesses as much as 7% of total sales each year — what’s the difference between a good CEO and a great CEO? A good CEO is an important part of any successful business. A great CEO, on the other hand, doesn’t just lead — they inspire and contribute to an impactful business.

Here are the four key traits in particular that separate the good CEOs from the great ones. 87% of professional leaders, who either become or aspire to one day to become a CEO, deliberately develop the following four qualities. They may seem simple, but the key lies in the consistency of application that delivers the best results time and again.

1. Great CEOs make decisions with conviction

A great CEO understands that more often than not, it’s not about making the best decision possible — it’s about being decisive with conviction. It’s less about making the perfect decision and more about making decisions when they’re needed and acting without doubt.

A common trait among CEOs with the highest IQ is that they often struggle with making fast decisions as they’re much more likely to weigh the pros and cons of every situation. This leads to indecision and ambiguity, which invariably creates a bottleneck.

Great CEOs know that the expectation of ‘perfect information’ is an unrealistic one on the best of days; you need to make decisions quickly with conviction. If any signs of doubt are exhibited, employees will quickly start to lose faith in their leaders.

2. Great CEOs know how to measure impact

Regardless of the business you’re running or even in the industry you’re operating in, success more often than not comes down to your ability to deliver results. A great CEO never focuses too much on their vision without understanding the precise impact of that vision and which metrics will ultimately be used to measure its success.

To that end, it should come as no surprise that CEOs who are deftly able to engage their stakeholders’ needs are 75% more successful in their role than those who aren’t.

To be a great CEO, you need to be aware of not just the impact of what you want delivered — but also the impact you’re making when you deliver the results or engage with the people who have a stake in the game.

This idea even plays a role in how you interact with people on a daily basis. Remember that employees will always magnify your reactions. If you grimace when someone is telling you their ‘next big idea’, they might immediately think you hate it — or worse, think they’re being fired.

Along the same lines, good CEOs will allow employees to vote in the direction of the company. Great CEOs will allow them to have a true voice in the matter, albeit with the understanding that the consensus-driven decision is not necessarily the one that will be made. Knowing how to measure impact — in this case, the difference between listening to the input of employees because you’re afraid of being disliked versus making an unpopular move because you know it’s the best one — is something you’ll need to focus on if you want to move up to ‘great CEO’ status.

3. Great CEOs adapt proactively

Everything about your business is changing regularly — from the marketplace you’re trying to serve to your industry to your organisation at a basic level. CEOs who are able to adapt to changing times and evolving needs are roughly 6.7 times more likely to succeed than those who do not.

For a great CEO, adapting proactively is less about being able to successfully handle today’s challenges and more about dividing your attention between short and long-term thinking. Devoting as much of your time as possible to thinking about the long-term direction of things makes it easier for you to not only recognise signs of change and mitigate risks ahead of time, but it also creates a business that operates with a growth mindset as well.

4. Great CEOs deliver reliably

Good CEOs make promises. Great CEOs keep them.

To be a great CEO, you need to demonstrate results. This means that you need to show you cannot only recognise what needs to be done to move a business forward, but actually do it. It should come as no surprise that CEO candidates who are twice as likely to deliver results than average are much more likely to actually be picked for that role.

To get better at this, learn how to set realistic expectations upfront. Focus on establishing business management systems including dashboards, accountability, performance monitoring, and more. All of this allows you to build a much more stable bridge between where you are today and what you promised you would do tomorrow.

One of the major reasons that CEOs sometimes don’t deliver expected results is because they don’t have the tools in place when they need them the most. In fact, 60% of CEOs make the rookie mistake of not having the right team in place quickly enough. Words are cheap — actions are more expensive. From the business management solutions you employ to the teams you surround yourself with, all of this helps you deliver what you need, when you need it, no exceptions.

From good to great

The fact of the matter is that the gap between a good CEO and a great one is often created less as a result of any one major move and more because of a series of small ones. Knowing how to make decisions with conviction, knowing how to measure the impact of actions both large and small, being able to adapt to a naturally fluid environment, and knowing how to deliver what you promised are all major leadership traits that you should be focused on.

If you’d like to find out more information about the major qualities of a great CEO, or if you’d like to learn more about similar leadership insight topics, please don’t hesitate to contact us today. 

 

5 Leadership styles and when to apply them

An effective leader motivates and guides employees, targeting their strengths and weaknesses so that both the employees and the organisation can succeed. The relationship between leadership styles and employees, therefore, plays a crucial role. Despite of this, surveys have shown that 75% of employees voluntarily leaving their positions leave because of their bosses, leading directly to issues of talent retention and churn.

Surprisingly, 36% of organisations don’t have a formal leadership development strategy — considering that to be a good and effective leader, one needs to be highly adaptable. Depending on a project, the environment, and even the psychology of the employee involved, leaders may find themselves switching between leadership styles quite frequently.

It all starts with a solid knowledge of the five major leadership styles.

Facilitative leadership

Facilitative leadership is a people-centric leadership style that puts the work process and company culture first, ideal for creative and high-pressure environments.

A facilitative leader works to build trusting relationships between leaders and employees in order to achieve their mutual goals. Facilitative leaders learn as much as they can about their employees and how they work, give clear expectations of their employees, and encourage them as they achieve these goals. Facilitative leaders are positive and motivational.

Ideally, employees should feel that they are valued and that their work matters; they should feel as though they are being listened to and that they know what to expect.

Facilitative leadership is often used best within creative and skill-based industries, in which a more rigorous or structured type of leadership style could lead to roadblocks and stress. Facilitative leadership puts people first and thus ties very strongly into people-first company cultures. It is best used when employees are already invested in producing the best work that they can for the organisation.
 

Laissez-faire leadership

Laissez-faire leadership is a hands-off leadership style that puts all members of the team in control, ideal for exceptional employees and self-motivated teams.

In a laissez-faire leadership, a leader provides very little guidance to their team. Instead, they trust that their team understands their own roles and will be able to perform their best. Statistically, laissez-faire leadership is often considered to be the least productive type of leadership — but this is usually when it is improperly applied. When applied correctly, laissez-faire leadership actually reduces much of the red tape surrounding organisational administration and can produce very rapid and effective results.

A tightly connected team full of self-starters may thrive under laissez-faire leadership. All individuals need to be personally motivated and highly competent. Laissez-faire leadership is best used when each individual member has an expertise and skill set that the leader themselves may not necessarily grasp. In this situation, over-managing employees could become more disruptive than helpful.

 

Coaching leadership

Coaching leadership creates a give-and-take atmosphere that puts a heavy emphasis on two-way communication, ideal for developing long-term and stable communication.

Sports teams are an excellent example of how a well-balanced coaching leadership style is put into effect. In a coaching leadership, the leader sets out clear goals and responsibilities for their team. However, the leader also listens to their team and provides constant communication. Leaders will provide feedback regarding an employee’s role and accomplishments and will listen to any concerns that employee has. This fosters a very strong employee-and-leader relationship, which is more likely to yield stable and consistent results.

When competent and capable employees don’t seem to be giving their job the attention that’s needed, a coaching leadership can be used to delve into their psychology and to inspire and motivate. Coaching leaderships drill down to any potential issues within a team and inspire the team to work together. They are best used to develop long-term team structures and goals.

 

Authoritative leadership

Authoritative leadership is essentially a dictatorship that puts the leader in complete control, ideal for undisciplined or high-stakes environments.

Authoritative leadership is one of the least preferred by employees, but nevertheless, it can become necessary in a variety of situations. In authoritative leadership, a leader makes all the decisions and rarely considers the opinions of team members. Team members may rebel against this type of leadership style unless they feel that the consequences of rebellion outweigh the benefits. All the team’s goals, initiatives, and strategies will be developed solely by the team leader, with very little input. The psychology of authoritative leadership can be a bit rough, with employees feeling devalued and ignored.

Though it may sound like a bleak atmosphere, authoritative leadership can become necessary when there has been a complete breakdown in structure. During times of transition or crisis, an authoritative leadership style may be necessary to make rapid-fire decisions and to keep a team together. Authoritative leadership is generally not intended for long-term use but instead as a short-term tool.

 

Democratic leadership

Democratic leadership is a type of leadership that puts an emphasis on the free exchange of ideas, ideal for most balanced working environments.

This is one of the most versatile types of leadership style. In a democratic leadership, team members are consulted regarding major decisions and projects. Communication consistently occurs between leaders and team members, and input from every individual is considered valuable.

Many teams have a tendency to default to some form of democratic leadership policy. However, it isn’t without its flaws: a democratic leadership process does take longer, and projects and teams can be stalled by a weak link.

Democratic leadership works best in strong, homogenous teams of accomplished and competent individuals. This is a solid ‘default’ leadership style, though it is particularly useful when time is not at a premium. It may need to be abandoned in times of crisis or looming deadlines.

 

All about the balance

There is no one leadership style that is going to carry you through all the teams, projects, and environments that you will encounter. Instead, the ability to effortlessly switch between these leadership styles as necessary is what makes for an effective leader. A business with satisfied and motivated employees will be able to retain the best talent and experience limited churn.

But merely knowing about these leadership styles is not enough: you also need to be trained in them. Contact TEC today to get started.