October 20, 2024 • 24 mins
In this episode we explore how leadership influences employee retention. We discuss why retaining talent is so important, the role leaders play, and how different leadership styles can either keep your employees happy or push them away.
We'll be breaking this down into three main sections:
- why retention matters
- how leadership affects retention, and how each leadership style is different
- share strategies to help you keep your top talent engaged and committed
You can find the show notes for this episode here
Would you like to submit a question to the show? Let us know on our website or via LinkedIn.
Brought to you by Aster HR, the Work Wonders Podcast is hosted by Angela Gauci & Susan Rochester and is recorded at Launch Pad at Western Sydney University.
All information or advice included in this podcast is general, has been developed as a starting point for your business, and should be tailored to your specific requirements. It should not be considered legal advice. We have made every attempt to ensure the accuracy and currency of this information at the time of recording. However, references to things like employment laws are subject to change. For specific advice relating to your business, please get in touch with us.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:06):
Welcome to the Work Wonders podcast brought to you
by Asta HR, where we simplifythe human side of business.
I'm Angela.
Speaker 2 (00:13):
And I'm Susan.
Let's dive into today's episodeand find out what you've been
wondering about.
Speaker 1 (00:21):
In today's episode, we're going to look more at
retention.
We'll explore why retainingtalent is so important for you
and the role that leaders play,and how different leadership
styles can either keep youremployees happy or push them
away.
Speaker 2 (00:35):
That's right, Angela.
This episode is going to befull of insights to help you
understand the connectionbetween leadership and retention
and share strategies with youthat will help to keep your top
talent engaged and committed.
Speaker 1 (00:48):
So let's get started.
This is the Work Wonderspodcast.
Hi Susan, hi Angela, okay.
So retention is the aim of thegame.
We want to keep peopleemployees in our business for
longer.
It's certainly the cheaper wayto do it.
So when we say retention, whatwe mean is the ability to keep
(01:11):
employees in their job for along time.
High retention rates are goingto be really crucial for a
business owner because it meansthat you're holding onto people
in their role.
There's less need to recruitsomeone different, there's less
training involved, potentially,and all that sort of thing.
On the flip side of that, highturnover or low retention can be
(01:35):
costly, because think ofrecruitment expenses, lost
productivity while you've gotthat downtime of someone leaving
and someone coming, and thetime it takes to get a new
employee up to speed.
Speaker 2 (01:47):
That's exactly right, Angela.
In fact, there's been a studydone by the Society of Human
Resource Management in theStates that found that replacing
an employee can cost anywherebetween 50% to 200% of their
annual salary.
Speaker 1 (02:00):
I'd agree with that, depending on the role.
Speaker 2 (02:03):
But there's more.
So it goes beyond the financialcosts, doesn't it?
Yeah, because it also impactsthe overall morale and culture
of the organisation.
Speaker 1 (02:12):
Yeah.
Speaker 2 (02:13):
And when people stay longer, you've got that
continuity and thatinstitutional knowledge that can
really drive a company forward.
When you've got everyone knowswhat's what and what's going on.
Speaker 1 (02:24):
Yeah, yeah, the more invested they are.
Yeah, okay.
So then we think about what'sleadership's role and how does
that come into play?
Well, leaders are really thearchitects, if you like, of the
work environment and the cultureof a workplace.
They set the tone for, or atleast maintain the tone, you
know, for, the organisation andhow employees feel about their
(02:45):
job.
A good leader will inspiretrust, provide really clear
direction, like you say, sopeople know where they're going,
are engaged in that, and haveor create that really supportive
atmosphere that everybody'shappy to be in.
Speaker 2 (03:01):
Yeah, and they want to stick around.
So it's not just Angela and Isaying this because it sounds
nice.
There's actually quite a lot ofresearch to back us up.
In fact, there's a reallystrong correlation between
effective leadership and highretention rates.
One study by Gallup found thatthe managers account for at
(03:22):
least 70% of the variance inemployee engagement scores
across business units.
Wow, so that means that thequality of leadership directly
affects whether employees chooseto stay with the company or
look for opportunities elsewhere.
Speaker 1 (03:36):
That makes sense, because I've heard it said that
you leave a boss, you don'tleave a job, exactly yeah.
All right.
So we've told you what we meanby retention and why we think
it's important or certainly thestats are backing us up there,
susan but let's now focus on,like we said, the impact of a
leader on retention.
(03:56):
So let's think about thepositive impacts.
Let's start there.
Positive is always a better wayto start.
Start there.
Positive is always a better wayto start.
So supportive and communicativeleaders.
They will foster loyalty bymaking employees feel valued and
heard.
That's always important.
When a leader provides cleargoals and meaningful feedback,
(04:21):
it helps a person stay engagedand on the right track, not just
with their performance but withtheir link to the purpose of
the organisation.
When an employee understandstheir role and the bigger
picture of what's trying to bedone with the team and the whole
organisation, they're much moreinvested in seeing the whole
team and the organisation as awhole achieve that and be part
of it.
They're much more motivated,would you say.
(04:41):
Oh, yes, I'd agree with that.
Speaker 2 (04:43):
But I'd also say it goes further than that, because
people like to be seen.
We want to be acknowledged.
I don't know if you've everworked in an office where there
was that one person who wouldn'tsay good morning to anyone in
the morning.
But aside from that, it's theleaders who recognise and
appreciate their employees'efforts are going to create that
(05:05):
positive work environment.
And that doesn't have to beanything fancy.
It can be as simple as sayinggood job, or a shout out in a
team meeting, yep, or it can bestructured like an Employee of
the Month program.
But it's the acknowledgementthat makes the employees feel
appreciated so they're morelikely to stick around.
Speaker 1 (05:24):
Yeah.
So on the flip side, then I'llbe the negative, nancy.
Poor leadership, I guess it'sobviously going to significantly
harm retention.
So things like micromanagement,the lack of trust among staff
and leaders and everyone,inadequate communication, not
clear on expectations they'reall really negative things that
(05:46):
are going to be a problem.
When leaders are overlycontrolling rather than trusting
their employees to do theirwork, or they fail to provide
support, an employee is going tobecome pretty disengaged and,
like, as you said, will golooking somewhere else for
something better.
Speaker 2 (06:01):
And there's something else that we've spoken about
elsewhere as well, which is theneed for that clear
communication, clearinstructions, so that people
aren't left thinking where do Istand, what am I doing?
Or should I find somewhere elsewhere I know what's going on?
Speaker 1 (06:16):
Yeah, exactly, I'm always not surprised, but I'm
always reminded of howcommunication can be thought of
something so simple.
But it's all about how a personunderstands what you're giving
them.
That's right, and it can beeasily reminded to you or slap
you in the face sometimes.
That not always is your messagereceived as the way you
(06:37):
intended it, Exactly you knowwhat you said.
Yeah, but do they know what yousaid?
Speaker 2 (06:44):
So there's also another negative aspect can be
if there's inconsistent orunfair treatment by leaders,
that can really be a huge driverin people leaving.
If they feel that feeling thatthe promotions and the rewards
or even feedback are beinginconsistently applied, then you
(07:05):
know how are they going totrust the leadership and, and
more than that.
We've talked about theeffective communication, but
that's also about constructivefeedback as well.
Speaker 1 (07:16):
Yeah.
Speaker 2 (07:17):
So that employees know, as we said, what's going
on and don't feel that sort oflost.
Or you know, I'm just driftingalong, I come in, I do my job,
but what's it relate to?
Speaker 1 (07:30):
Okay, so let's think of that in a practical example.
Let's consider a business wherethe leader is always changing
or decisions are made withoutkind of input from anybody.
Speaker 2 (07:41):
Yeah.
Speaker 1 (07:41):
So that instability can create a really uncertain
workplace.
People don't know what's coming, stressful and, yeah,
definitely prompting people togo.
This doesn't feel good.
Uncertain workplace peopledon't know what's coming, um,
stressful and um, yeah,definitely prompting people to
go that this doesn't feel good.
Speaker 2 (07:54):
I'm gonna look for a place that is actually better
and you know, one of the worstum situations to be in is where
you think you're doing what wasrequired and you've headed off
down one path yes and thensuddenly get told oh no, we're
not doing that, we're doing thisnow.
Speaker 1 (08:09):
Yeah.
Speaker 2 (08:13):
This has become another priority, without any
proper explanation of why thingshave changed or any querying of
why you've headed in onedirection.
Speaker 1 (08:19):
Yes.
Speaker 2 (08:20):
Which you thought was the correct direction.
Yeah, so as a summary of allthat, then, it's really
essential for leaders tomaintain that consistency and
fairness and open lines ofcommunication if they're going
to keep their teams engaged andcommitted.
Speaker 1 (08:34):
Yeah, I've had some managers say that there's a
little bit of fear in allowingtoo much information to
employees or what's seen as toomuch information, especially
around decisions or strategy, oreven, dare I say it, asking
their opinion about those things.
But I don't know.
I see it as a way that peoplecan really start to feel
(08:54):
invested in what's happening.
And look, you can take and leavean opinion of somebody if
you're the leader, but allowingthem the chance to speak is a
really positive thing to do andsimply sharing, like you said,
that example of when thingschange.
You know, if you were justletting them know, yeah, things
have shifted, we're going thisway, we're going that way is
respectful.
Speaker 2 (09:15):
Yeah, that's true, it's respectful and it builds
that trust and, as you said, youcan say you know.
Thanks for your opinion, butwe're going to do this.
And that's a way ofcommunicating your reasons for
doing what you're doing as aleader.
Whether or not they come onboard, that's a matter of them.
But again, communicate,communicate, communicate.
Speaker 1 (09:37):
You can never over-communicate and, as we've
talked about before, getting alittle off topic here.
But recruitment, it starts wayback then when you think about
someone that's connected intoyour vision and your values and
your purpose.
If you're starting it way back,then with the right people in
your team, these sorts ofhiccups are not going to be a
problem.
Speaker 2 (09:54):
Yeah, that's true.
Okay, I'm going that way withyou, and the same with getting
people's input.
You know, if you've hired forvalues, alignment as well as
skills, then presumably theinput that you get from those
people is going to be input thatyou might like.
Very true, you might not likeit, but input you might need Two
(10:15):
different things, I suppose.
Yeah, how did you get into yourbusiness?
Sometimes it's because you'regreat at a particular thing or
you've got a passion forsomething and you know that you
can do it a little better thanwhat other people are already
doing.
Now that you're in business,you've discovered there's a lot
more to it than just having theright skills, especially when
(10:36):
you've hired a team.
You might have learnt thefinancial skills that you need
because you had to, basically,but where do you go to develop
the HR and the leadership skillsthat you need?
If you're feeling overwhelmedin managing people and all the
other things that come withrunning a business, we can help
you.
We'll guide you through theskills you need to feel more
confident in leadership.
(10:58):
Go and check out the coachingpage on our website or schedule
a call with us at astorhrcomau.
Now it's back to the episodeNow it's back to the episode.
Speaker 1 (11:10):
Okay, susan, so we've talked about how leadership can
impact it, but we said we'dtalk about leadership styles, so
let's unpack that a little bitmore.
So different leadership stylesare going to either foster or
hinder retention.
Let's start withtransformational leadership, so
transformational leaders inspireand motivate their teams by
(11:34):
creating that vision andencouraging professional and
personal growth.
Speaker 2 (11:39):
Exactly so.
Transformational leaders, youwill know, by their ability to
connect with employees on anemotional level.
Now we don't mean the place isin emotional chaos all the time,
or anything like that.
I just mean that you'reconnecting with the heart as
well as the head, so it's reallyfostering a sense of purpose
(12:01):
and commitment which isnaturally going to lead to
higher retention.
This is what we've been talkingabout all along, I suppose.
So an example of that might bethat a transformational leader
will encourage their employeesto pursue their career goals and
provide them with the resourcesthey need to achieve those
career goals.
Speaker 1 (12:18):
Whereas, on the other hand, a transactional
leadership focuses more on thetasks, the rewards, the
penalties.
And while that style canmaintain stability and achieve
goals and targets and thingslike that, and it can certainly
ensure that employees are doingthe right thing, it might not
inspire long-term loyalty.
(12:39):
So employees might stay perhapsfor the short term, but just
stay for the rewards commission,whatever it may be, but they
don't necessarily feel that deepsense of connection to the
organisational purpose.
Speaker 2 (12:53):
So that transactional leadership could be effective
in certain situations.
So where it's a highlystructured environment's needed,
where there needs to be clearinstructions and rewards, can
you think of any examples wheretransactional leadership might
be appropriate, where it's allabout giving instruction and
being very clear?
Speaker 1 (13:14):
Perhaps something that is urgent in nature like a
medical position or something.
Speaker 2 (13:19):
Or a bushfire.
Speaker 1 (13:20):
Yeah, emergency yep yep, yeah.
Speaker 2 (13:23):
So you know, in that situation yeah, there's times
for it.
It's totally appropriate, butover the long term, if you don't
have those elements ofinspiration and personal growth
that we talked about earlier,it's going to be hard to keep
employees engaged over thelonger term.
I made a note, though, that Iwas thinking about the
(13:44):
generational differences.
Okay, so this is something thatwe've talked about in the past,
and we look at youngergenerations in the workforce.
They're, I think, possibly morewanting to be inspired, wanting
to have a purpose around theirwork.
I think that's fair to say,yeah, especially since COVID and
(14:05):
all that, and everyone's gonethrough a bit of a well, why am
I really doing this?
Yeah, especially if I'm going toget out of my slippers and go
somewhere, make it worthwhile,whereas, you know, the more
mature of us, who probablystarted work under a command and
control structure, are probablymore tolerant of that sort of
(14:25):
transactional leadership.
That's a good point.
Speaker 1 (14:27):
Okay.
So if we flip it now and thinkabout servant leadership,
servant leaders will prioritisetheir employees.
They focus on wellbeing anddevelopment.
That sort of style ofleadership creates a really
supportive obviously workenvironment.
Everyone feels looked after.
It's obviously going to enhanceretention in that way.
(14:49):
But it's interesting to sort ofcompare it to what you just
said there.
You know it's very, verydifferent.
Speaker 2 (14:55):
It is because you're building these strong
relationships.
They're based on trust andrespect.
You're basically saying well,you know, I trust you to get the
job done.
You're putting the employee atthe centre, putting them first
and helping them to feel likethey belong.
So obviously that's going tohelp people feel like they
should stick around.
Speaker 1 (15:16):
Yeah.
So in contrast, let's thinkabout autocratic and democratic
leadership styles.
So autocratic is those leaderswhere you know they make
decisions unilaterally, oftenwithout input of anybody else.
That can sort of lead to youremployees obviously not feeling
empowered to speak up, notfeeling part of what's been
(15:37):
going on.
Obviously it's going to lead tothings like turnover and that
sort of thing like we're talkingabout.
So employees just generallydon't feel valued, probably less
likely to make a contributionbecause they don't think much is
going to come of it, just kindof come there and do their job
and go home and not really givetheir opinion.
Speaker 2 (15:54):
So democratic leaders are quite different.
They're the ones who actuallywant the opinions.
They're going to involve theteam in the decision-making
processes and that obviously isgoing to feel more engaged,
because they're going to feelthat their voices are heard and
that their ideas matter.
So they're more likely to staycommitted to the organisation.
(16:14):
Now I was wondering if we couldhave a bit of a chat about how
that might look in practice.
Yeah, okay.
Speaker 1 (16:22):
So a democratic leader might hold a regular team
meeting, let's say, and gatherinputs on projects that are
coming up or encouragebrainstorming and that sort of
collaboration.
This will not only improve thedecisions that might come out
from that and the quality ofwhat's being done you know, more
minds are better than just onebut it also strengthens team
(16:45):
cohesion and loyalty as well.
So that's cool.
Speaker 2 (16:47):
Yeah, exactly.
So a key takeaway, then, onleadership styles is that they
do play a crucial role inshaping employee experiences and
their decision to stay with thecompany or go.
Speaker 1 (17:00):
Yeah, look, they do.
And I think we've talked aboutthis before in a previous
episode Susan I think it waslast season, episode 11, season
five where we talked about thedifference between a boss and a
leader, and we've opened up alot of different leadership
styles here, the differencebetween a boss and a leader, and
you know, we've opened up a lotof different leadership styles
here.
And yes, there are times whenyou might be more autocratic or
more democratic or whatever itmay be, and that's okay.
(17:22):
But I guess it's about havingan awareness of that and not
just being only one way.
I think.
Exactly.
Speaker 2 (17:31):
Are you feeling overwhelmed by all the things
that you need to do to managepeople in your business?
We've got changes tolegislation, different
generations in the workplace,managing the expectations of the
people that you employ.
Why not hand all that over tothe experts and get on with what
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(17:52):
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Schedule your free call todayat astrohrcomau.
Now let's get back to theepisode.
Speaker 1 (18:13):
So now we're on to thinking a bit more deeply, then
.
Okay, we know why retention isimportant, what it is and how a
leader and their style ofleadership can influence that.
But now let's talk aboutstrategies to help enhance
retention.
So one effective strategy is toencourage open communication,
as we've talked about, andactive listening, things like
(18:35):
that regularly checking in withemployees and genuinely
listening to their ideas, theirconcerns, any suggestions they
have and their opinions, andthey can address things that
might come up before it'sactually a big problem or before
somebody decides to leave.
Speaker 2 (18:51):
Exactly.
One thing that we haven'tmentioned is getting input via
surveys.
Speaker 1 (18:57):
Oh yeah.
Speaker 2 (18:57):
So it can be very easy to do a quick regular
survey where you just get a bitof a feel for how everyone's
feeling and get feedback onwhat's going on.
Speaker 1 (19:08):
Yeah, or if you're in that sort of workplace where
people check in you know, I'veseen it done where there's like
a laptop or like a sort of thingwhere you clock in for your day
.
And that sort of thing can alsojust have some smiley faces on
it Exactly.
Speaker 2 (19:19):
You know how are you feeling today or at the end of
the day.
Speaker 1 (19:21):
How are you feeling?
You know little things likethat, just to, yeah, check in.
Speaker 2 (19:26):
One word of caution on surveys, though is there's no
point in gathering theinformation if you don't intend
doing anything with it.
So true.
Another thing that we talkedabout previously in this episode
was about providingopportunities for professional
growth, so that's aboutinvesting in employees'
development and their careers.
We'll go into that in a laterepisode in this.
(19:49):
But when there's a clear pathfor growth, then they're more
likely to stay.
And again, I think that youneed to have an eye to the
generational and individualrequirements there.
Speaker 1 (20:01):
Yeah, it's different for everybody.
Speaker 2 (20:03):
Expectations is a better word.
Speaker 1 (20:04):
So what about recognition and rewards programs
?
Susan, they're also a reallyimportant thing to think about
Regularly acknowledging aperson's contribution or their
achievements.
So it could be like you saidearlier it could be as simple as
a thank you or how you did agreat job about that, or it
could be something more formal,like an awards or employee of
the month sort of thing.
(20:25):
It will obviously boost morale.
If people see other peoplebeing valued and their
contributions being valued,they'll be looking to do a
better job too and see theircontributions valued and it
obviously reinforces the valuesof the organisation.
And everybody loves to be toldthey're doing a good job.
No one comes to work to do abad job.
Speaker 2 (20:44):
True.
I just put one proviso on that,though, but it goes back to the
basics, which is basically thatyou need to be fair and
consistent.
Speaker 1 (20:53):
Yeah, that's true, otherwise it can have the
opposite effect.
Yes.
Speaker 2 (20:58):
So fostering a positive and inclusive workplace
culture is obviously essential.
So that means creating anenvironment where employers and
we can't say this too many timesbut where they feel respected,
included and part of the team.
There's a lot of practices thatyou may or may not just think
of common sense and do naturally, or you might have to give a
(21:19):
bit more thought to that aregoing to make people feel like
they're included.
Speaker 1 (21:25):
Yeah, you're right, culture's a huge one.
We'll unpack that more inanother future episode as well.
I'm thinking about work-lifebalance and flexibility.
That's something that gosh.
We've talked about a lot in thelast little while, haven't we?
since COVID?
But it really has becomesomething that's a norm, you
know, for people.
And flexible work practices canbe so many things.
(21:46):
It doesn't just mean workingfrom home.
It could be flexible start andfinish times, flexible days,
rdos you know there's so manydifferent ways to do it.
Flexible days, rdos you knowthere's so many different ways
to do it.
It really comes down toallowing a person, an employee,
to, you know, come up with whatworks for them and fit their
personal life in with theirprofessional life.
You know person needs to manageall these things in their life
(22:07):
and they can still be a reallyconstructive employee in doing
that, and it can definitely leadto higher retention if people
are looked after in that way.
Speaker 2 (22:19):
Yeah, definitely, and I think really.
The last point that I'd like tomake about leaders is they need
to lead by example, so thatmeans demonstrating the
behaviours and values that youexpect from your team.
Speaker 1 (22:27):
And if you're doing that.
Speaker 2 (22:28):
That's going to build trust and set a standard for
the entire organisation.
It just reminded me of a newsitem I saw recently regarding a
state government department inNew South Wales which is telling
people they have to get back tothe office.
Speaker 1 (22:43):
Oh yes.
Speaker 2 (22:43):
But the issue is that the managers have to come back
to the office and they're notall happy about that.
So, yeah, that comes to that.
You know, leadership, showingthe way and setting the example.
Speaker 1 (22:57):
Good place to finish.
I think that wraps it up nicely, susan.
So look, we've talked about thecrucial role that leadership
plays in employee retention.
I think we've, you know,explored all those different
styles of leadership and howeach of them can either foster
or hinder retention foster orhinder retention.
Speaker 2 (23:15):
Yeah, and we've also shared some actionable
strategies that you can use orat least get you thinking about.
You know how you could do abetter job of keeping people in
your business, if that's anissue for you.
Speaker 1 (23:25):
So I wonder, as you're listening to this today,
if you're reflecting on your ownleadership style and perhaps
the leadership within yourorganisation, if there's more
than just yourself, and considerhow you might apply these
strategies to improve theleadership within your
organisation, if there's morethan just yourself, and consider
how you might apply thesestrategies to improve the
retention in your team andcreate a more engaged and
committed workforce.
But if you enjoyed this episode, as always, please hit the
(23:47):
subscribe button, leave us areview and just tell someone you
know We'd love to get the wordout to more people to help them
with their workplaces.
Speaker 2 (23:55):
We sure would, and don't forget to join us next
time when we'll be talking abouthow to build a culture of
recognition Nice one to lead onfrom this.
Yeah, until then, keep leadingwith purpose and fostering a
workplace where everyone thrives.
Speaker 1 (24:19):
Thanks for listening to the Work Wonders podcast
brought to you by Asta HR.
Hit the subscribe button now tonever miss an episode, and if
you'd like to continue theconversation with us, you can
find us over at astahrcomau.
See you in the next episode.
Welcome to the Work Wonders podcast brought to you
by Asta HR, where we simplifythe human side of business.
I'm Angela.
Speaker 2 (00:13):
And I'm Susan.
Let's dive into today's episodeand find out what you've been
wondering about.
Speaker 1 (00:21):
In today's episode, we're going to look more at
retention.
We'll explore why retainingtalent is so important for you
and the role that leaders play,and how different leadership
styles can either keep youremployees happy or push them
away.
Speaker 2 (00:35):
That's right, Angela.
This episode is going to befull of insights to help you
understand the connectionbetween leadership and retention
and share strategies with youthat will help to keep your top
talent engaged and committed.
Speaker 1 (00:48):
So let's get started.
This is the Work Wonderspodcast.
Hi Susan, hi Angela, okay.
So retention is the aim of thegame.
We want to keep peopleemployees in our business for
longer.
It's certainly the cheaper wayto do it.
So when we say retention, whatwe mean is the ability to keep
(01:11):
employees in their job for along time.
High retention rates are goingto be really crucial for a
business owner because it meansthat you're holding onto people
in their role.
There's less need to recruitsomeone different, there's less
training involved, potentially,and all that sort of thing.
On the flip side of that, highturnover or low retention can be
(01:35):
costly, because think ofrecruitment expenses, lost
productivity while you've gotthat downtime of someone leaving
and someone coming, and thetime it takes to get a new
employee up to speed.
Speaker 2 (01:47):
That's exactly right, Angela.
In fact, there's been a studydone by the Society of Human
Resource Management in theStates that found that replacing
an employee can cost anywherebetween 50% to 200% of their
annual salary.
Speaker 1 (02:00):
I'd agree with that, depending on the role.
Speaker 2 (02:03):
But there's more.
So it goes beyond the financialcosts, doesn't it?
Yeah, because it also impactsthe overall morale and culture
of the organisation.
Speaker 1 (02:12):
Yeah.
Speaker 2 (02:13):
And when people stay longer, you've got that
continuity and thatinstitutional knowledge that can
really drive a company forward.
When you've got everyone knowswhat's what and what's going on.
Speaker 1 (02:24):
Yeah, yeah, the more invested they are.
Yeah, okay.
So then we think about what'sleadership's role and how does
that come into play?
Well, leaders are really thearchitects, if you like, of the
work environment and the cultureof a workplace.
They set the tone for, or atleast maintain the tone, you
know, for, the organisation andhow employees feel about their
(02:45):
job.
A good leader will inspiretrust, provide really clear
direction, like you say, sopeople know where they're going,
are engaged in that, and haveor create that really supportive
atmosphere that everybody'shappy to be in.
Speaker 2 (03:01):
Yeah, and they want to stick around.
So it's not just Angela and Isaying this because it sounds
nice.
There's actually quite a lot ofresearch to back us up.
In fact, there's a reallystrong correlation between
effective leadership and highretention rates.
One study by Gallup found thatthe managers account for at
(03:22):
least 70% of the variance inemployee engagement scores
across business units.
Wow, so that means that thequality of leadership directly
affects whether employees chooseto stay with the company or
look for opportunities elsewhere.
Speaker 1 (03:36):
That makes sense, because I've heard it said that
you leave a boss, you don'tleave a job, exactly yeah.
All right.
So we've told you what we meanby retention and why we think
it's important or certainly thestats are backing us up there,
susan but let's now focus on,like we said, the impact of a
leader on retention.
(03:56):
So let's think about thepositive impacts.
Let's start there.
Positive is always a better wayto start.
Start there.
Positive is always a better wayto start.
So supportive and communicativeleaders.
They will foster loyalty bymaking employees feel valued and
heard.
That's always important.
When a leader provides cleargoals and meaningful feedback,
(04:21):
it helps a person stay engagedand on the right track, not just
with their performance but withtheir link to the purpose of
the organisation.
When an employee understandstheir role and the bigger
picture of what's trying to bedone with the team and the whole
organisation, they're much moreinvested in seeing the whole
team and the organisation as awhole achieve that and be part
of it.
They're much more motivated,would you say.
(04:41):
Oh, yes, I'd agree with that.
Speaker 2 (04:43):
But I'd also say it goes further than that, because
people like to be seen.
We want to be acknowledged.
I don't know if you've everworked in an office where there
was that one person who wouldn'tsay good morning to anyone in
the morning.
But aside from that, it's theleaders who recognise and
appreciate their employees'efforts are going to create that
(05:05):
positive work environment.
And that doesn't have to beanything fancy.
It can be as simple as sayinggood job, or a shout out in a
team meeting, yep, or it can bestructured like an Employee of
the Month program.
But it's the acknowledgementthat makes the employees feel
appreciated so they're morelikely to stick around.
Speaker 1 (05:24):
Yeah.
So on the flip side, then I'llbe the negative, nancy.
Poor leadership, I guess it'sobviously going to significantly
harm retention.
So things like micromanagement,the lack of trust among staff
and leaders and everyone,inadequate communication, not
clear on expectations they'reall really negative things that
(05:46):
are going to be a problem.
When leaders are overlycontrolling rather than trusting
their employees to do theirwork, or they fail to provide
support, an employee is going tobecome pretty disengaged and,
like, as you said, will golooking somewhere else for
something better.
Speaker 2 (06:01):
And there's something else that we've spoken about
elsewhere as well, which is theneed for that clear
communication, clearinstructions, so that people
aren't left thinking where do Istand, what am I doing?
Or should I find somewhere elsewhere I know what's going on?
Speaker 1 (06:16):
Yeah, exactly, I'm always not surprised, but I'm
always reminded of howcommunication can be thought of
something so simple.
But it's all about how a personunderstands what you're giving
them.
That's right, and it can beeasily reminded to you or slap
you in the face sometimes.
That not always is your messagereceived as the way you
(06:37):
intended it, Exactly you knowwhat you said.
Yeah, but do they know what yousaid?
Speaker 2 (06:44):
So there's also another negative aspect can be
if there's inconsistent orunfair treatment by leaders,
that can really be a huge driverin people leaving.
If they feel that feeling thatthe promotions and the rewards
or even feedback are beinginconsistently applied, then you
(07:05):
know how are they going totrust the leadership and, and
more than that.
We've talked about theeffective communication, but
that's also about constructivefeedback as well.
Speaker 1 (07:16):
Yeah.
Speaker 2 (07:17):
So that employees know, as we said, what's going
on and don't feel that sort oflost.
Or you know, I'm just driftingalong, I come in, I do my job,
but what's it relate to?
Speaker 1 (07:30):
Okay, so let's think of that in a practical example.
Let's consider a business wherethe leader is always changing
or decisions are made withoutkind of input from anybody.
Speaker 2 (07:41):
Yeah.
Speaker 1 (07:41):
So that instability can create a really uncertain
workplace.
People don't know what's coming, stressful and, yeah,
definitely prompting people togo.
This doesn't feel good.
Uncertain workplace peopledon't know what's coming, um,
stressful and um, yeah,definitely prompting people to
go that this doesn't feel good.
Speaker 2 (07:54):
I'm gonna look for a place that is actually better
and you know, one of the worstum situations to be in is where
you think you're doing what wasrequired and you've headed off
down one path yes and thensuddenly get told oh no, we're
not doing that, we're doing thisnow.
Speaker 1 (08:09):
Yeah.
Speaker 2 (08:13):
This has become another priority, without any
proper explanation of why thingshave changed or any querying of
why you've headed in onedirection.
Speaker 1 (08:19):
Yes.
Speaker 2 (08:20):
Which you thought was the correct direction.
Yeah, so as a summary of allthat, then, it's really
essential for leaders tomaintain that consistency and
fairness and open lines ofcommunication if they're going
to keep their teams engaged andcommitted.
Speaker 1 (08:34):
Yeah, I've had some managers say that there's a
little bit of fear in allowingtoo much information to
employees or what's seen as toomuch information, especially
around decisions or strategy, oreven, dare I say it, asking
their opinion about those things.
But I don't know.
I see it as a way that peoplecan really start to feel
(08:54):
invested in what's happening.
And look, you can take and leavean opinion of somebody if
you're the leader, but allowingthem the chance to speak is a
really positive thing to do andsimply sharing, like you said,
that example of when thingschange.
You know, if you were justletting them know, yeah, things
have shifted, we're going thisway, we're going that way is
respectful.
Speaker 2 (09:15):
Yeah, that's true, it's respectful and it builds
that trust and, as you said, youcan say you know.
Thanks for your opinion, butwe're going to do this.
And that's a way ofcommunicating your reasons for
doing what you're doing as aleader.
Whether or not they come onboard, that's a matter of them.
But again, communicate,communicate, communicate.
Speaker 1 (09:37):
You can never over-communicate and, as we've
talked about before, getting alittle off topic here.
But recruitment, it starts wayback then when you think about
someone that's connected intoyour vision and your values and
your purpose.
If you're starting it way back,then with the right people in
your team, these sorts ofhiccups are not going to be a
problem.
Speaker 2 (09:54):
Yeah, that's true.
Okay, I'm going that way withyou, and the same with getting
people's input.
You know, if you've hired forvalues, alignment as well as
skills, then presumably theinput that you get from those
people is going to be input thatyou might like.
Very true, you might not likeit, but input you might need Two
(10:15):
different things, I suppose.
Yeah, how did you get into yourbusiness?
Sometimes it's because you'regreat at a particular thing or
you've got a passion forsomething and you know that you
can do it a little better thanwhat other people are already
doing.
Now that you're in business,you've discovered there's a lot
more to it than just having theright skills, especially when
(10:36):
you've hired a team.
You might have learnt thefinancial skills that you need
because you had to, basically,but where do you go to develop
the HR and the leadership skillsthat you need?
If you're feeling overwhelmedin managing people and all the
other things that come withrunning a business, we can help
you.
We'll guide you through theskills you need to feel more
confident in leadership.
(10:58):
Go and check out the coachingpage on our website or schedule
a call with us at astorhrcomau.
Now it's back to the episodeNow it's back to the episode.
Speaker 1 (11:10):
Okay, susan, so we've talked about how leadership can
impact it, but we said we'dtalk about leadership styles, so
let's unpack that a little bitmore.
So different leadership stylesare going to either foster or
hinder retention.
Let's start withtransformational leadership, so
transformational leaders inspireand motivate their teams by
(11:34):
creating that vision andencouraging professional and
personal growth.
Speaker 2 (11:39):
Exactly so.
Transformational leaders, youwill know, by their ability to
connect with employees on anemotional level.
Now we don't mean the place isin emotional chaos all the time,
or anything like that.
I just mean that you'reconnecting with the heart as
well as the head, so it's reallyfostering a sense of purpose
(12:01):
and commitment which isnaturally going to lead to
higher retention.
This is what we've been talkingabout all along, I suppose.
So an example of that might bethat a transformational leader
will encourage their employeesto pursue their career goals and
provide them with the resourcesthey need to achieve those
career goals.
Speaker 1 (12:18):
Whereas, on the other hand, a transactional
leadership focuses more on thetasks, the rewards, the
penalties.
And while that style canmaintain stability and achieve
goals and targets and thingslike that, and it can certainly
ensure that employees are doingthe right thing, it might not
inspire long-term loyalty.
(12:39):
So employees might stay perhapsfor the short term, but just
stay for the rewards commission,whatever it may be, but they
don't necessarily feel that deepsense of connection to the
organisational purpose.
Speaker 2 (12:53):
So that transactional leadership could be effective
in certain situations.
So where it's a highlystructured environment's needed,
where there needs to be clearinstructions and rewards, can
you think of any examples wheretransactional leadership might
be appropriate, where it's allabout giving instruction and
being very clear?
Speaker 1 (13:14):
Perhaps something that is urgent in nature like a
medical position or something.
Speaker 2 (13:19):
Or a bushfire.
Speaker 1 (13:20):
Yeah, emergency yep yep, yeah.
Speaker 2 (13:23):
So you know, in that situation yeah, there's times
for it.
It's totally appropriate, butover the long term, if you don't
have those elements ofinspiration and personal growth
that we talked about earlier,it's going to be hard to keep
employees engaged over thelonger term.
I made a note, though, that Iwas thinking about the
(13:44):
generational differences.
Okay, so this is something thatwe've talked about in the past,
and we look at youngergenerations in the workforce.
They're, I think, possibly morewanting to be inspired, wanting
to have a purpose around theirwork.
I think that's fair to say,yeah, especially since COVID and
(14:05):
all that, and everyone's gonethrough a bit of a well, why am
I really doing this?
Yeah, especially if I'm going toget out of my slippers and go
somewhere, make it worthwhile,whereas, you know, the more
mature of us, who probablystarted work under a command and
control structure, are probablymore tolerant of that sort of
(14:25):
transactional leadership.
That's a good point.
Speaker 1 (14:27):
Okay.
So if we flip it now and thinkabout servant leadership,
servant leaders will prioritisetheir employees.
They focus on wellbeing anddevelopment.
That sort of style ofleadership creates a really
supportive obviously workenvironment.
Everyone feels looked after.
It's obviously going to enhanceretention in that way.
(14:49):
But it's interesting to sort ofcompare it to what you just
said there.
You know it's very, verydifferent.
Speaker 2 (14:55):
It is because you're building these strong
relationships.
They're based on trust andrespect.
You're basically saying well,you know, I trust you to get the
job done.
You're putting the employee atthe centre, putting them first
and helping them to feel likethey belong.
So obviously that's going tohelp people feel like they
should stick around.
Speaker 1 (15:16):
Yeah.
So in contrast, let's thinkabout autocratic and democratic
leadership styles.
So autocratic is those leaderswhere you know they make
decisions unilaterally, oftenwithout input of anybody else.
That can sort of lead to youremployees obviously not feeling
empowered to speak up, notfeeling part of what's been
(15:37):
going on.
Obviously it's going to lead tothings like turnover and that
sort of thing like we're talkingabout.
So employees just generallydon't feel valued, probably less
likely to make a contributionbecause they don't think much is
going to come of it, just kindof come there and do their job
and go home and not really givetheir opinion.
Speaker 2 (15:54):
So democratic leaders are quite different.
They're the ones who actuallywant the opinions.
They're going to involve theteam in the decision-making
processes and that obviously isgoing to feel more engaged,
because they're going to feelthat their voices are heard and
that their ideas matter.
So they're more likely to staycommitted to the organisation.
(16:14):
Now I was wondering if we couldhave a bit of a chat about how
that might look in practice.
Yeah, okay.
Speaker 1 (16:22):
So a democratic leader might hold a regular team
meeting, let's say, and gatherinputs on projects that are
coming up or encouragebrainstorming and that sort of
collaboration.
This will not only improve thedecisions that might come out
from that and the quality ofwhat's being done you know, more
minds are better than just onebut it also strengthens team
(16:45):
cohesion and loyalty as well.
So that's cool.
Speaker 2 (16:47):
Yeah, exactly.
So a key takeaway, then, onleadership styles is that they
do play a crucial role inshaping employee experiences and
their decision to stay with thecompany or go.
Speaker 1 (17:00):
Yeah, look, they do.
And I think we've talked aboutthis before in a previous
episode Susan I think it waslast season, episode 11, season
five where we talked about thedifference between a boss and a
leader, and we've opened up alot of different leadership
styles here, the differencebetween a boss and a leader, and
you know, we've opened up a lotof different leadership styles
here.
And yes, there are times whenyou might be more autocratic or
more democratic or whatever itmay be, and that's okay.
(17:22):
But I guess it's about havingan awareness of that and not
just being only one way.
I think.
Exactly.
Speaker 2 (17:31):
Are you feeling overwhelmed by all the things
that you need to do to managepeople in your business?
We've got changes tolegislation, different
generations in the workplace,managing the expectations of the
people that you employ.
Why not hand all that over tothe experts and get on with what
you do best?
The experienced team at AstraHR can quickly give you the
(17:52):
advice that you need and get youheaded in the right direction.
Without HR support and coachingfor you with managing people,
it all becomes so much simpler.
Schedule your free call todayat astrohrcomau.
Now let's get back to theepisode.
Speaker 1 (18:13):
So now we're on to thinking a bit more deeply, then
.
Okay, we know why retention isimportant, what it is and how a
leader and their style ofleadership can influence that.
But now let's talk aboutstrategies to help enhance
retention.
So one effective strategy is toencourage open communication,
as we've talked about, andactive listening, things like
(18:35):
that regularly checking in withemployees and genuinely
listening to their ideas, theirconcerns, any suggestions they
have and their opinions, andthey can address things that
might come up before it'sactually a big problem or before
somebody decides to leave.
Speaker 2 (18:51):
Exactly.
One thing that we haven'tmentioned is getting input via
surveys.
Speaker 1 (18:57):
Oh yeah.
Speaker 2 (18:57):
So it can be very easy to do a quick regular
survey where you just get a bitof a feel for how everyone's
feeling and get feedback onwhat's going on.
Speaker 1 (19:08):
Yeah, or if you're in that sort of workplace where
people check in you know, I'veseen it done where there's like
a laptop or like a sort of thingwhere you clock in for your day
.
And that sort of thing can alsojust have some smiley faces on
it Exactly.
Speaker 2 (19:19):
You know how are you feeling today or at the end of
the day.
Speaker 1 (19:21):
How are you feeling?
You know little things likethat, just to, yeah, check in.
Speaker 2 (19:26):
One word of caution on surveys, though is there's no
point in gathering theinformation if you don't intend
doing anything with it.
So true.
Another thing that we talkedabout previously in this episode
was about providingopportunities for professional
growth, so that's aboutinvesting in employees'
development and their careers.
We'll go into that in a laterepisode in this.
(19:49):
But when there's a clear pathfor growth, then they're more
likely to stay.
And again, I think that youneed to have an eye to the
generational and individualrequirements there.
Speaker 1 (20:01):
Yeah, it's different for everybody.
Speaker 2 (20:03):
Expectations is a better word.
Speaker 1 (20:04):
So what about recognition and rewards programs
?
Susan, they're also a reallyimportant thing to think about
Regularly acknowledging aperson's contribution or their
achievements.
So it could be like you saidearlier it could be as simple as
a thank you or how you did agreat job about that, or it
could be something more formal,like an awards or employee of
the month sort of thing.
(20:25):
It will obviously boost morale.
If people see other peoplebeing valued and their
contributions being valued,they'll be looking to do a
better job too and see theircontributions valued and it
obviously reinforces the valuesof the organisation.
And everybody loves to be toldthey're doing a good job.
No one comes to work to do abad job.
Speaker 2 (20:44):
True.
I just put one proviso on that,though, but it goes back to the
basics, which is basically thatyou need to be fair and
consistent.
Speaker 1 (20:53):
Yeah, that's true, otherwise it can have the
opposite effect.
Yes.
Speaker 2 (20:58):
So fostering a positive and inclusive workplace
culture is obviously essential.
So that means creating anenvironment where employers and
we can't say this too many timesbut where they feel respected,
included and part of the team.
There's a lot of practices thatyou may or may not just think
of common sense and do naturally, or you might have to give a
(21:19):
bit more thought to that aregoing to make people feel like
they're included.
Speaker 1 (21:25):
Yeah, you're right, culture's a huge one.
We'll unpack that more inanother future episode as well.
I'm thinking about work-lifebalance and flexibility.
That's something that gosh.
We've talked about a lot in thelast little while, haven't we?
since COVID?
But it really has becomesomething that's a norm, you
know, for people.
And flexible work practices canbe so many things.
(21:46):
It doesn't just mean workingfrom home.
It could be flexible start andfinish times, flexible days,
rdos you know there's so manydifferent ways to do it.
Flexible days, rdos you knowthere's so many different ways
to do it.
It really comes down toallowing a person, an employee,
to, you know, come up with whatworks for them and fit their
personal life in with theirprofessional life.
You know person needs to manageall these things in their life
(22:07):
and they can still be a reallyconstructive employee in doing
that, and it can definitely leadto higher retention if people
are looked after in that way.
Speaker 2 (22:19):
Yeah, definitely, and I think really.
The last point that I'd like tomake about leaders is they need
to lead by example, so thatmeans demonstrating the
behaviours and values that youexpect from your team.
Speaker 1 (22:27):
And if you're doing that.
Speaker 2 (22:28):
That's going to build trust and set a standard for
the entire organisation.
It just reminded me of a newsitem I saw recently regarding a
state government department inNew South Wales which is telling
people they have to get back tothe office.
Speaker 1 (22:43):
Oh yes.
Speaker 2 (22:43):
But the issue is that the managers have to come back
to the office and they're notall happy about that.
So, yeah, that comes to that.
You know, leadership, showingthe way and setting the example.
Speaker 1 (22:57):
Good place to finish.
I think that wraps it up nicely, susan.
So look, we've talked about thecrucial role that leadership
plays in employee retention.
I think we've, you know,explored all those different
styles of leadership and howeach of them can either foster
or hinder retention foster orhinder retention.
Speaker 2 (23:15):
Yeah, and we've also shared some actionable
strategies that you can use orat least get you thinking about.
You know how you could do abetter job of keeping people in
your business, if that's anissue for you.
Speaker 1 (23:25):
So I wonder, as you're listening to this today,
if you're reflecting on your ownleadership style and perhaps
the leadership within yourorganisation, if there's more
than just yourself, and considerhow you might apply these
strategies to improve theleadership within your
organisation, if there's morethan just yourself, and consider
how you might apply thesestrategies to improve the
retention in your team andcreate a more engaged and
committed workforce.
But if you enjoyed this episode, as always, please hit the
(23:47):
subscribe button, leave us areview and just tell someone you
know We'd love to get the wordout to more people to help them
with their workplaces.
Speaker 2 (23:55):
We sure would, and don't forget to join us next
time when we'll be talking abouthow to build a culture of
recognition Nice one to lead onfrom this.
Yeah, until then, keep leadingwith purpose and fostering a
workplace where everyone thrives.
Speaker 1 (24:19):
Thanks for listening to the Work Wonders podcast
brought to you by Asta HR.
Hit the subscribe button now tonever miss an episode, and if
you'd like to continue theconversation with us, you can
find us over at astahrcomau.
See you in the next episode.
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