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May 16, 2024
How Do You Recover When a Star Employee Leaves?
While boosting the performance of an underperformer can be a primary challenge for a manager, losing an overperformer can be a bigger blow.
Not only can star employees elevate productivity with their own efforts, but they also often inspire the rest of the team to higher levels of performance. A star employee’s departure can also cause other team members to question their futures at the company and look elsewhere.
An initial reaction may be to provide the employee with a counteroffer, but research conducted by software company Eclipse found that about 80% of candidates who accept a counteroffer from their current employer end up leaving within six months. The same survey found that half of candidates who accept a counteroffer from their current employer will be back on the job market after two months — usually when the novelty of an increased salary and new responsibilities wear off.
A blog entry from The Headhunters states, “Money is hardly ever the sole factor someone [is] resigning and those other underlying factors will still be there.”
However, conducting an exit interview is seen as essential. A recent HBR on Leadership discussion noted that the exit interview can inform whether the exit was due to stress, not providing the employee with enough of a challenge or development opportunities, a lack of recognition, or poor management. Often, the individual is looking to try something new, and one piece of advice was not to take the exit personally.
Nicole Smith, editorial audience director at Harvard Business Review, said, “How many times have we heard that phrase, that people don’t quit jobs, they quit bosses? We’ve almost been socialized to think about this and to believe this. And whether it’s true or not, it’s almost a go-to. What did I do to encourage for you to feel like you don’t want to be here anymore? And the truth of the matter is, there’s a myriad of reasons that people could choose to move on from their current job, from their current organization.”
Maureen Hoch, editor of HBR.org, pointed out the importance of recognizing the top performer’s contributions both personally and in front of the team. She said, “Even if you’re feeling very blindsided, upset, discouraged. If you show that to the team and you don’t recognize and thank that person for all the ways that they’ve made a difference, that’s going to hit your team wrong.”
Lacey Walters, VP of marketing at HR platform Blue Signal, said a star performer’s exit may necessitate showing a “little extra appreciation” for current employees who may be reassessing their own future with the company. She wrote in a blog entry, “When a top performer leaves, this is doubly concerning. This can cause worries around lack of stability or merely open people’s eyes to greener pastures. While the feeling will likely be fleeting, it’s important to re-address why each individual employee is valuable.”
Discussion Questions
What steps should a retailer take to recover smoothly after a star performer unexpectedly exits from a selling floor or the corporate office?
What advice would you have for managers in coping with their own disappointment and stress as well as around boosting morale for remaining team members?
Poll
Loading …BrainTrust
Frank Margolis
Executive Director, Growth Marketing & Business Development, Toshiba Global Commerce Solutions
Allison McCabe
Director Retail Technology, enVista
Mel Kleiman
President, Humetrics
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I think the cardinal rule here is not to put all your eggs in one basket. Certainly, some employees will be stars, but no company should be so dependent on one employee that their leaving causes massive disruption. The trick is to have balance on the team so that there is a mix of skillsets and levels of talent at any one time. Of course, if you don’t want good people to leave then it’s best to treat them right!
And for all employees, retailers should be regularly reviewing and discussing satisfaction and, if appropriate, goals and ambitions. Talking to people and making them feel valued works wonders and is all too often overlooked!
Ensuring a balanced team and regularly engaging with staff about their satisfaction and goals not only fosters loyalty but also mitigates the risks associated with over-reliance on any single individual.
It really starts with making sure you show appreciation for the work and effort put in by all employees, and in particular, those who are making a real difference. It is true that if a high achiever leaves an organization, that it is visible and does cause other employees to wonder why and perhaps consider if they too should leave. Open channels of feedback and communication, appreciation, and providing opportunities for growth are all good ways to keep your good people!
When a star performer exits, begin by communicating openly with your team about the transition, expressing gratitude for the departing employee’s contributions. Assess and redistribute the workload among existing team members to ensure smooth operations. Conduct an exit interview to understand the reasons for the departure, which can help address underlying issues and prevent future losses.
Show appreciation for the remaining employees’ efforts and value, perhaps with small incentives or public recognition, to maintain morale and demonstrate teams’ members importance to the team’s success.
A good manager (and region manager) will have a team where others are ready to step into other jobs. You want depth on the team. I work with a client that bonuses managers who have a team of people who are cross-trained to step into the jobs.
A star’s exit shouldn’t be a surprise to the store manager. It’s important to foster proactive communication, listen to associates’ ideas, and provide opportunities to advance a retail career.
I know I’m cheating by ducking the question – but – as is the case with the ship captain who has been told the best way to handle an impossible situation is to “not get into it in the first place”:
If you’re dependent on a small group of stars, you’ve got a cultural problem already. This used to be really common in retail.
certainly recognizing performance is nice but I always found “employee of the month” awards really cloying. Pay them, provide training and a career path and they will not think about leaving
A seasoned manager should not be shaken by such a departure, as proper cross-training and collaboration would have already been in place. More than likely the star employee was performing additional tasks beyond their stated role, which makes the division of responsibilities more simplistic.
In addition, a star employee would give proper notice (ie: 2 weeks), which would further allow for any additional training and handover necessary.
The key is not get in this situation. Be that leader that is proactive – listen to your associates, Communicate clearly, give timely feedback. Don’t wait till the end of year evaluation to give that feedback. Respect the work/life balance.
Don’t close the barn door after the Star employee has left. The key is for managers to regularly have ongoing conversations and one-on-one meetings with all of their employees, but especially with their star performers. These meetings should focus on where the employees are, what they are doing, and what help they need to move forward. The steps that need to be taken are not after a star employee leaves, but to ensure they don’t leave in the first place. so they don’t leave in the first place.
If retailers and grocers don’t want to lose star performers they’d better make sure the company values system is clear, the rules aren’t stifling, communication is open, and performers have paths to exceed expectations.
But if a star leaves, it’s important everyone else know while the departing person was valued and will be missed, that the company will continue to support everyone else’s success, in achieving goals, and doing great work for customers. Communication and open lines are key. So managers must make sure to let everyone know they are available for questions and are in their corner.
In my experience, I’ve worked with some great and some poor leaders, and one of the poor ones, let’s call him Barry, often said, “Everyone is replaceable.” That’s completely inaccurate, Barry. Elite performers are rarely replaced, even if a “role” is reassigned. Barry didn’t believe that and he loses his best people.
I recommend more than one person conduct exit interviews when losing a superstar employee. In order for a learning experience to be meaningful, it is beneficial to have two or three perspectives. It is most important to prepare a list of relevant questions ahead of time, and to allow plenty of time for feedback that you may not have asked for. Be sincere and real in the exit interview, don’t be defensive, and walk away learning nothing.
To begin with, let’s talk about not losing elite performers in the first place. There is no doubt that superstars are recruited and offered elevated jobs with greater benefits and money, but most great people do not leave for those reasons alone. There are simpler reasons why they leave.
Most employees, even superstars, leave the job when they have a miserable boss, or when the environment is toxic. Another way to look at it, people leave misery because where they work is where most of their day to day lives are spent.
Micromanagement, underchallenge, underpay, and underappreciation are all reasons why superstars leave their jobs. Those who are superstars are fully aware of their value and skills, and they have no reason to stay in an unpleasant environment. In contrast, mediocre people will stick around but for all the wrong reasons.
All the above forms of cancer are avoidable. Over the course of my career, I have managed many companies, departments, or regions in very large companies, as well as my own company. I have recruited, hired, or developed many superstars over the years, and I do not lose them.
I don’t necessarily follow what’s taught in corporate management manuals. For instance, I am a leader more than a boss, and if I’m self actualized and committed to the right goals for the brand, the business, and customers, I don’t need “distance” from people reporting to me. I believe that friendship and mutual respect are the reasons I don’t lose superstars. Friends work better together than strangers.
In addition to feeling safe and secure, employees should feel able to communicate freely with me and other employees in the company, regardless of whether the issue is personal, professional, or functional. The bottom line is that superstars aren’t likely to flee from happiness, success, and respect, but we shouldn’t assume anything. Communication is key. – Db
As many in this thread are confirming, its important to continually develop and cultivate people so the “hit by the bus” factor can be quickly addressed. People leave for many reasons. A good manager is never totally surprised by a resignation and is ready with a succession plan.
No doubt. If you are surprised by a resignation on your team, it means you either didn’t take the time to understand what motivates them, show support for them, and/or have open lines of communication.
This is not a problem that is solved “after”. It is anticipated and planned for and solved long before the exit of a “star”. If a star’s exit can really cause that much turmoil, then the manager has done a really poor job in training, cross training, and team building. Solid teams can cover for one another. Solid teams respect and learn from each other. But yes, under the best of cultures and the best of managers, there will be standout performers that decide to leave. Even then, it’s not about solving the situation “after”. Teams have to be created and managed so that if the star quarterback gets sacked, the well trained and highly motivated second stringer comes in and the game goes on.
Different personalities are motivated by different factors. These factors can be compensation, feeling appreciated, career advancement, interactions with others. The shrewdest of managers will be able to tell what motivates whom and make sure that that individual star’s needs are filled. Easier said than done.
The counteroffer is probably an exercise in futility. Once the employee (star or steady performer) has started to think about leaving the company, the chances are good that he/she is going to move on. Barring a huge increase in salary and even a promotion, it’s hard to hang onto people in these circumstances.
As other panelists have pointed out, a balanced team — not solely dependent on one “star” — is essential. But more importantly, understand what motivates top employees to stay (or to leave) in the first place. Don’t wait for the annual review or the exit interview to understand your top performers’ motivations.
Losing top performers should be a wake-up call for leaders. Good managers continually engage with employees on career goals, job satisfaction, and ways to improve day to day operations. Good managers also should have contingency and grow path staff plans in place.
The first step is easy: Celebrate their contributions and wish them we well.
Every leader should have ladders of opportunity for their teams – and have transparent discussions around their career and life goals. Sometimes a team member needs to move on to attain the career experiences they want – it’s ok and longer-term it can be great thing for them and the company. The star performer may learn a lot elsewhere and then come back with an even wider perspective. Leaning into change, and having genuine, empathetic discussions with star performers makes for a better work environment for everyone.
All companies need star employees. Too often, though, the question of this article leads them to assume they have far more to lose by relying on them than by embracing their value. So, first and foremost, we need to accept and honor how important they are to companies.
That said, any response depends entirely on “why” they left. If the company work environment, as happens too often in retail today, is driving them away then the company needs to learn about that — and perhaps attempt to keep them as part of trying to change.
We also must accept that star employees are generally focused on the work and on results that matter so they are made exceptionally unhappy by constant bureaucratic interference from headquarters. Honor this. Respect their focus. And, for god’s sake, get the bureaucratic interference out of their way.
Unfortunately, the arrival of star employees is a complex result from intentional and accidental events. We must realize we cannot “create” these employees but we can encourage and embrace them as they begin to emerge. So don’t create a ‘star employee’ program or you’ll make everyone “above average” meaning no one will be excellent or know they are valued as a truly star employee.
To recover smoothly after a star performer’s abrupt exit, retail managers need to talk to the remaining team. Employees may express a range of emotions like grief, fear, envy and eagerness to fill the gap. This discussion can start to help everyone move on.
Managers can quit taking it personally when stars leave because the sector has an above-average attrition rate. Connecting one-on-one with remaining employees helps managers spot potential new stars, understand their ambitions and identify new ways for employees to shine. Letting employees feel heard and valued can improve retention.