Exec retention is a problem, too

Exec retention is a problem, too BY NICK REDDIN
When I go out and speak to companies and organizations about the world of work, inevitably someone will ask me about retention. Typically, the question is framed around the lowest ranks of the company. I've yet to be asked about retention strategies targeted toward executives. You may not think executive retention is an issue. Think again.

The average tenure for company executives in America is four years. For a position that is expensive to fill and incredibly important for a company's survival, I think a four-year average is barely enough to get any return on investment.

A recent study by ExecuNet found that 75 percent of respondents were planning to leave their company within six months. The study also showed that 53 percent are not satisfied with their job.Those numbers should make people consider what can be done to keep executives committed to the company for the long term.

One of the problems I frequently run into is that the human resources department is allowed to oversee hiring and retention for jobs at the lower level but not at the upper level. I think that in and of itself creates an issue of dissatisfaction. There's an assumption that HR has nothing to offer a high-level executive. There's also the assumption that upper-level executives must be self-motivated, have constant drive and initiative, and in some ways look out for themselves.

What gets overlooked or forgotten is that executives are still working people. They still need and want the continued training, career path navigation, coaching and job satisfaction. Just because they have moved up the corporate ladder doesn't mean the things that helped them move up the ladder no longer matter.

Here are the most common reasons employed executives are not happy.

1. Limited opportunity for advancement (18 percent)

2. Lack of challenge or personal growth (16 percent)

3. Unfavorable company prospects (12 percent)

4. Compensation (11 percent)

5. Poor corporate culture (10 percent)

I believe this is an area companies tend to overlook at peril to themselves. Dave Opton of ExecuNet sums it up this way: "It has become increasingly evident that bigger paychecks are not a panacea for voluntary turnover. In an age when the average executive turnover is less than four years, corporations that fail to provide room for the development and growth of their best talent will be constantly battling turnover."

I could not agree more and would like to encourage you to scrutinize what your company is doing to retain top talent. If you're an unhappy executive in your current role, I would encourage you to work with the human resources department in an honest, open way on how to improve upon those things that could drive you to leave.

Nick Reddin is the business development manager for Manpower Inc.'s Des Moines office.

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