How do you measure your effectiveness as a leader?  Do you consider employee turnover to be a blessing or a curse?  Do you actively support your employees taking on new roles? Even if it is outside of your department or area of responsibility?

In my work with leaders at all levels, I have recently heard a fair bit of rationalization regarding why direct reports (often in leadership roles themselves) are well suited to their current role.  This is particularly true in large organizations that have been able to retain people in part due to: the economic downturn; the number of long term employees tied to pensions and deferred incentive plans and employees’ ease and comfort with the status quo. Many leaders in Fortune 500 companies are telling their employees that they will be ready for that next role “in another year or so”; or “when we complete this project; change initiative, or integration”; or “you need to develop a bit more in this area”.

These responses indicate that as leaders we are largely in control of whether someone stays or goes.  But at what cost to you and the organization?  Do they maintain the same level of engagement when you ask them to “stick around” for another year?  Do they go the extra mile for you when you suggest that the required areas of development cannot be met through a new opportunity but mastered only in their current role?

This is just as important to those of you occupying the C suite.  Your behaviour sets the tone for all in the organization.  Do you reward the leaders who champion and promote moves throughout your organization? Or do you turn a blind eye as long as your senior leaders deliver results?

Engaged employees plan to stay for what they give; the Disengaged stay for what they get. (Blessing White Employee Engagement Report 2011)

I have heard the responses from some of you, “The Gen Y group expect rapid promotions. They seek change regularly. They haven’t paid their dues. It will all happen in time.”  That may be. Or is it as likely that global demographics; the trend of retirements and part time work for baby boomers and the growth in small and medium sized businesses will provide choice and opportunities for motivated and talented workers in the years ahead?

As leaders, how do we ensure enough stability that we meet our business challenges while supporting growth opportunities for our employees?

1. Dedicate the time to hold conversations with your direct reports at least twice per year and/or when they are considering a move.  Discuss their career aspirations and how their goals align to your organization’s values, strategies and plans.
2. Be honest. Practice transparency. If their timelines or expectations are unrealistic, explain your rationale.  Offer them concrete opportunities to develop and/or ready themselves for future.  Sometimes reassurance is all that is required when they are considering another opportunity. They may be comfortable with continued development in their current role if they understand you will support the right move later.
3. Document development plans; keep your promises and hold people to account. If they do not follow through, explain the potential consequences and the possible impact to their personal brand.
4. Sponsor and support talent. When you see a great opportunity for someone, be ready to champion them even if it means losing a star from your team. The organization almost always benefits from people moves. Employees expand their network, share a point of view from another part of the organization and develop more intellectual property.
5. Take a risk on someone. If offered, take the opportunity to mentor someone with potential. Perhaps they don’t have the deep technical knowledge or business acumen of their predecessor but if they are a strong performer with a proven track record, 9 times out of 10 they will outperform for you because you gave them an opportunity and demonstrated belief in them.

Gain a reputation in the organization as being a leader who fosters talent for the entire company. Make your department or division a “destination” in the organization and foster employee development. Everyone benefits – including you!

Are you reading this and thinking, “This applies to me but I am someone who is being held back”? In my next posting I will share tips on how to deal with the situation and why, in reality, no one is holding you back. If you liked this, sign up to receive more free tips, tools and techniques.