I don’t know about you, but I’ve had more turnover in my organization in the last year than I’ve seen in the last 20 years. Hiring isn’t easy.  It’s part science and part art. I admit I don’t always get it right and when I make a bad hire it hurts, financially and emotionally.

Harvard Business Review research shows that hiring managers would rather inflate performance ratings than admit they hired the wrong person.  That fact makes me sad, because I think a critical part of good leadership is owning your mistakes. When people in our organizations see us owning our mistakes, they’re more likely to own their mistakes.

Recently the business landscape has been experiencing what can only be described as a "turnover tsunami." A confluence of factors, both internal and external, has led to unprecedented churn, leaving leaders grappling for solutions.

In August 2023, the Society for Human Resource Management (SHRM) conducted a survey among HR professionals to pinpoint the primary reasons driving turnover within organizations. Here’s what they found.

1. Inadequate compensation.
2. Lack of career advancement opportunities.
3. Deficiency in workplace flexibility.
4. Poor onboarding which leads to turnover within the initial 30-90 days of employment.

For leaders navigating this turbulent landscape, understanding these key drivers of turnover is paramount. It underscores the importance of addressing the four fundamental issues above.

Companies that prioritize initiatives aimed at preventing burnout, fostering a culture of recognition and appreciation, promoting work-life balance, and implementing positive management practices stand to significantly improve their retention rates. By creating an environment where employees feel valued, supported, and motivated, organizations can cultivate loyalty and commitment among their teams.

While I know all of the above are important, I’ve seen first-hand over the last year staff who just think the grass is greener somewhere else.  I’ve always believed when someone wants to move on, they should. If they let me know, I’ll help them find their next opportunity.  If they don’t want to be part of our organization, I don’t want them any longer.  One person’s negativity causes huge morale issues in an organization.  I know this may seem a little confusing.  I’m talking about hiring practices that reduce turnover and suggesting some people in our organizations need to move on.  Both are true.

According to a U-S Bureau of Labor statistics survey, chief financial officers (CFOs) are acutely aware of the challenges posed by high turnover rates, with 54% ranking hiring and retaining staff as their most formidable challenge. This sentiment underscores the urgency for leaders to reassess their hiring strategies and make more informed decisions when it comes to recruitment.

I love learning from extraordinary leaders, so I’ve put together hiring advice below from some of the best.

“It doesn’t make sense to hire smart people and then tell them what to do; we hire smart people so they can tell us what to do.” – Steve Jobs Co-found Apple 

“If you pay peanuts, you get monkeys.” – Chinese Proverb

“Recently, I was asked if I was going to fire an employee who made a mistake that cost the company $600,000. No, I replied, I just spent $600,000 training him. Why would I want somebody to hire his experience?” – Thomas John Watson Sr. IBM Founder

“Hiring the right people takes time, the right questions and a healthy dose of curiosity. What do you think is the most important factor when building your team? For us, it’s personality.” —Richard Branson Virgin Group 

“You can have the best strategy and the best building in the world, but if you don’t have the hearts and minds of the people who work with you, none of it comes to life.” – Renee West first female president of a Las Vegas strip property

“People are not your most important asset. The right people are.” – Jim Collins author

“I am convinced that nothing we do is more important than hiring and developing people. At the end of the day, you bet on people, not on strategies.” – Lawrence Bossidy retired CEO Honeywell International

“Hiring people is an art, not a science, and resumes can’t tell you whether someone will fit into a company’s culture.” – Howard Schulz CEO Starbucks

Effective leadership in the face of the turnover tsunami necessitates a holistic approach that encompasses not only addressing immediate concerns such as compensation and career advancement but also fostering a culture where employees feel valued, engaged, and empowered to contribute their best. By heeding the wisdom of industry leaders and prioritizing the well-being and satisfaction of our teams, leaders can weather the storm of turnover and emerge stronger and more resilient than ever.