Dear Dave,
After many years of low staff turnover, during the last few years we have been experiencing an ever-increasing rate of staff attrition that has us concerned. We’re stumped as to why. We conduct exit interviews with most of the folks who have left in an effort to understand the reasons, but we don’t see any clear pattern. Based on what we are being told, they are generally not leaving for more pay or benefits. Instead, we are hearing comments such as "ready for a change" or "for personal reasons." How can we improve our retention rate and reverse this disturbing trend?
T.S., Ill.

Dear T.S.,
A fundamental key to good retention is having a well-organized and well-managed firm offering plenty of support and opportunities for people to achieve their maximum potential as professionals and as individuals. If the environment your firm creates for its staff does not provide this, sooner or later the good ones—the ones with the abilities and the options to go elsewhere—are at a high risk for leaving.

Begin by having a well-defined strategic plan for the firm that is kept current and shared with everyone in some detail on a regular basis. The crew always does better when they understand where the ship is going. Beyond that, each person in your organization should understand his or her personal role and responsibilities and how that role relates directly toward achieving the firm’s overall goals and objectives.

Let your people know that management is interested in their future. Are they technically minded or more interested in project or firm management? Do your best to understand the personal and professional goals of each person and work to develop a clear path forward for how individuals may progress toward achieving their personal objectives. Provide them a roadmap for advancement and recognition so they will not feel the need to look outside.

Keep your staff well informed at all times—in fact, over-communicate. Kill the "rumor mill" by making it redundant. As a management consultant working with engineering firms day in and day out, I find lack of communication one of the most common complaints voiced by staff members about the firms for which they work. It is not good enough to proclaim that you have an "open door" policy where anyone can ask anything of anybody; senior staff must take the initiative and proactively reach out to folks at all times.

Promote only teachers, mentors, trainers, and coaches to management positions. Don’t automatically promote your best technical people into management slots. Find other ways of rewarding strong technical people who lack the ability and desire to manage staff. Everyone will thank you, including the technical stars.

Ask for and expect a high level of performance from everyone in your firm. Keep people on their toes and reaching by continually challenging the limits of their abilities. If a person is becoming too comfortable in what is being asked of him or her, or the requested tasks are becoming too routine, look for opportunities to shake things up and move that person back to the edge of his or her capability. People grow when they are working at their margins. Make a serious investment of time and money to train and develop everyone on your staff to enable each person to advance further than even he or she thought possible. While expensive to do, it is far cheaper than the cost of constantly hiring and training replacements for people leaving your firm for greater opportunity elsewhere.

Deal swiftly and consistently with out-of-bounds or inappropriate behavior. Insist on a high degree of personal accountability on everyone’s part. Declining to do so only demoralizes those who are making the effort to contribute. When people make honest mistakes or errors in judgment, use the occasion as a training opportunity.

Use lots of positive reinforcement—and personalize it. Let people know you know who they are, what they are doing, and how they are performing. Try to decrease your reliance on the customary annual or semi-annual formal performance evaluation by providing more on-the-spot feedback and input to individuals immediately when behaviors—good or bad—occur. A fundamental breakdown in your management system exists if employees are hearing performance issues for the first time during formal evaluations.

Build relationships between the firm and individuals. You don’t need to be "buddy-buddy," but get close enough to show empathy to your employees and their circumstances and issues. Sincere interest in others is a mark of excellent leadership and is fundamental to creating a high degree of motivation within your staff.

Use the vested authority and power you hold as a principal or manager sparingly or not at all. Instead, guide people to where they need to be by asking a series of questions, making suggestions, and pointing out overlooked options, but try not to tell people what to do. You need them to think for themselves and not come to you to make decisions for issues that are within their scope of responsibility. Be a model for how you wish others to act in the firm. Never ask anyone to do anything you would not do yourself.

Create an appealing and modern work place. Work hard and expect a lot, but have some fun and create excitement at your firm as well. Be spontaneous when it comes to small celebrations and recognition. Randomly give people an extra paid day off. Pass out some theatre tickets. Have drawings on no particular schedule for a certificate for dinner and a movie for two.

Finally, accept the fact that some turnover is actually good. Firms where no one ever leaves are not healthy. Nobody is right for every situation all of the time. A firm with no turnover could indicate that either the firm or the staff are not being open and honest in their dealings with each other and, thus, failing to recognize when it is time for a change to the betterment of both parties.


Get answers to your questions about design firm and project management, finances, marketing, and related topics by sending them to Q&A, c/o: CE News, 330 N. Wabash, Suite 3201, Chicago, IL 60611, or faxing them to CE News at 312-628-5878. Include your name and telephone number in all correspondence. Your name will not be used in connection with published questions. David Wahby is president of Wahby & Associates (www.wahby.com), a management consulting firm serving A/E clients. He can be reached at 616-977-9756 or via e-mail at wahby@wahby.com.