The Secret to Retaining Top Talent at Your Company

The fight for talent today is fierce. Every company out there is under extreme pressure to not only hire the best talent available, but to retain that talent. Companies are all looking for ways to outdo their competition and offer their employees something better, something that pushes the “perk envelope” even further. This is why you hear of companies like Google and Facebook building massive campuses that more closely resemble a free version of Disneyland than an actual workplace. Companies like Netflix are pushing the boundaries of PTO by offering unlimited vacation and an unprecedented amount of maternity & paternity leave. And so on and so forth…

These perks are certainly creating a lot of buzz and may, at times, pique the interest of currently employed individuals to look into new employment opportunities at their companies. However, there is entirely too much focus put on providing perks that, for all intents and purposes, are extremely unnecessary and a waste of money. In a lot of cases, these perks are doing a much better job of retaining mediocre employees who actually spend more time playing ping-pong, drinking, and napping than they do working.

What it really takes to retain the top talent at your company is R.E.S.P.E.C.T.

R.E.S.P.E.C.T. is an acronym I created when I started my professional career. It has always helped me evaluate my own personal situation, but also to evaluate colleagues that work alongside me. Most importantly it has helped me to evaluate how I am doing as a manger to retain the top talent that works for me.

It goes without saying but the word respect on its own represents something every employee deserves at all times — that’s a given — but here is a break down of what R.E.S.P.E.C.T. means and how it should be used to help you retain the top talent at your company:

Recognition — Are you recognizing your top talent?

A big mistake companies make is not recognizing real talent when they have it. In fact, the Center for Management Organization & Effectiveness reported that 43% of managers said they don’t feel they get enough credit for the work they do. It is very important to identify who your top performers are and make sure you recognize them for their efforts. It can be as simple as a company-wide email that points out a stellar achievement or something more extravagant like rewarding them with a fancy dinner or special weekend getaway. Believe it or not, things like this go a LONG way and are a drop in the bucket in terms of most company budgets.

Earnings — Is your top talent being fairly compensated?

One thing is for sure in this competitive hiring market, if you don’t pay your employees fairly, someone else will. This is especially true given the transparency of salary information that is openly available these days via sites like Payscale and Glassdoor. It’s an even more important issue when it comes to pay inequality between men and women. If your company is not paying equal salaries to male and female employees, this will ruin you and have you losing some of your top female talent in no time. A top-performing employee is a top-performing employee, regardless of gender, and you need to make sure you pay them accordingly.

Support — Are you supporting the personal and professional needs of your top talent?

Not every employee will be an “A” player, but there needs to be a solid supporting cast of employees around them that they feel good about working with every day. Noone liked it in school when you got forced to do group projects with people you didn’t like or didn’t work well with, and the same applies for adults when they are at work. Aside from the professional aspect, your top talent will also need personal support at times. Life happens — people go through break-ups, pets die, people have car problems, etc.. Your company shouldn’t be in the business of punishing employees for what happens outside of work, but instead support them and their needs. They will appreciate it in the long-term and repay you with commitment to staying with your company when you need them the most.

Promotion — Are you promoting your top talent and helping them grow?

Titles and promotions can go hand-in-hand with compensation. If you’re not willing to promote your top talent and give them a better title, someone else certainly will. While this can be a pretty political process, don’t be afraid to give your top talent an appropriate title change if they deserve it. The feeling they get in having more worth to the company is invaluable to them, but can sometimes be as simple as an adjustment on a business card for your company.

Equity — Do you offer equity to your top talent?

Nothing creates a trickle down effect of motivation better than stock options. If the top talent in the company has stock options, not only are they more motivated to help the company have a successful exit, you have a better chance of retaining them because they want their stock to fully vest. This ends up being a win-win situation for you and for your employees. It’s also important not to be stingy here. If the employee is adding tremendous value to the company, it’s only right that they have the opportunity grow their value alongside the company’s value.

Culture — Are you creating a company culture your top talent can be proud of?

Don’t confuse this with the perks as I previously mentioned. Culture, as referred to here, is simply the idea of creating a brand that people like to be a part of. What are the things your company stands for? What kind of people work there? Are you involved in your community? Deloitte reported in January that 56% of employees won’t consider a company based on their values or conduct. Most highly talented individuals are also well-rounded individuals, and they want their company to be so also. This doesn’t mean spending all kinds of money and having material things in the office (like Dropbox’s $100k panda). They want to be able to wear their company colors proudly, sport that logo hoody on the weekends, and be part of a cool company that stands for something.

Transparency — Are you transparent with the top talent in your company?

While this may be hard for some business leaders to be comfortable with, there is nothing that makes your top talent more important than always being “in the know”. Having a real understanding of what’s going on in the company, where the company is headed, and its current strengths and weaknesses will allow your top talent to feel in control of their future. Doubt and uncertainty will often have your top talent jumping ship for a safer bet, where they feel more confident about the long-term trajectory of the company. Don’t sugarcoat. Don’t lie. Real talent will see problems and want to help fix them, not bail at first signs of distress.

In my time at Egnyte I have had recruiters come calling and have received offers to join other companies in Silicon Valley, New York, and even Europe. A lot of them were awesome companies with great brand names, and they may have even been a good fit, but none of that mattered because Egnyte has always given me R.E.S.P.E.C.T. — and because of that I have never left.

While a massive campus with slides going from one meeting room to another, or a personal Philz Coffee barista in your cafeteria may be nice attractions, these “shiny objects” often dull very quickly in the constantly evolving world of business today.