When a high-performer leaves your team – it can be devastating.
Years of institutional knowledge goes out the door. Progress comes to a screeching halt.
Worse – it can impact your reputation.
Others within the team may question whether they, too, should leave. People within the org might speculate on what motivated the key player to depart.
It turns out – to significantly lower the risk of an untimely departure – you just need to focus on two things.
Unfortunately, most Product Managers don’t realize this until it’s too late.
What Drives Your High-Performers
High-performers need a return on their investment. It takes significant time and energy to operate at the level they do. To maintain that pace, the “rewards” received must be proportionate to balance things out.
Rewards come in the form of earning or learning.
Therefore, the secret to retaining your high-performers boils down to this:
High-performers must earn or learn, or else they’ll churn.
Let’s dive into each of these reward types below.
High-Performers Want To Earn
Earning includes both monetary and non-monetary rewards. The key is your high-performer must perceive the value as high.
Don’t worry if your high-performer does not report to you (common).
Just follow these steps:
Step 1: Estimate Cost of Departure
Estimate the pain it will cost the company if the high-performer departs.
Keep it simple. Use t-shirt sizing (S, M, L, XL) to quantify pain in a given area. Where possible – associate each t-shirt size with a monetary value for a more tangible pain estimate.
Areas to consider for your estimate:
- Execution delays – e.g. missed deadlines, disrupted dependencies
- Scope reduction – e.g. scaled-back roadmap, no capacity for growth
- Knowledge loss – e.g. slower innovation, issues take longer to debug
- Morale loss – e.g. productivity drop, risk of more departures
- Recruiting costs – e.g. time-to-hire, onboarding & training investment
- Customer impact – e.g. loss of key relationships, cost to rebuild trust
Step 2: Identify Monetary Rewards
Use your pain estimate from step #1 to both shape and secure monetary rewards.
The most obvious monetary rewards are salary increases and annual bonuses.
But don’t forget to look beyond the obvious! For example:
- Spot bonuses – one-time rewards for specific achievements
- Equity & profit-sharing – rewards that grow over time
- Gifts with meaning – gifts personalized to their interests and hobbies
- Flex time – remote work options, flex hours, relaxed vacation reporting
- Perks – expense dinners, workspace stipend, travel upgrades, tuition, etc.
Step 3: Identify Non-Monetary Rewards
Many rewards have high-perceived value, but cannot be quantified in dollar signs.
The most obvious non-monetary reward is a change in title.
But remember to look beyond the obvious! For example:
- Internal recognition – e.g. company-wide verbal or written praise, awards
- External recognition – e.g. blog post masthead, social media callout
- Seat at the table – e.g. strategy meetings, early access to new initiatives
- Trust and autonomy – e.g. sharp decrease in oversight, reduced administrative burden for approvals
Step 4: Deliver Rewards Strategically
How you deliver a reward can be more important than the reward itself.
Variable rewards are well-known in psychology to “hook” people and keep them returning for more. Use this to your advantage.
Set up an impromptu 1:1 with your high-performer. The suspense will work in your favor. After delivering the reward, avoid jumping into “business talk”. Keep it short and sweet. Let them enjoy (and later dwell) on the moment.
High-Performers Want To Learn
High-performers love to learn. Learning new things keeps their work engaging and stimulating, and prevents stagnation and boredom.
If you don’t provide opportunities for mastery and growth, they will seek these opportunities elsewhere.
How to keep your high-performers on their learners’ edge:
- Project choice – freedom to choose projects aligned with interests
- Conferences & training – fund industry events, workshops, and courses
- Public speaking – provide opportunities on panels and at conferences
- Shadowing – allow them to observe key processes (e.g. hiring, calibrations)
- Customer engagement – involve them in critical customer visits
- Teaching others – facilitate mentorship of junior team members
- Leadership development – provide access to executive coaching
What To Do When a Departure Feels Inevitable
Sometimes – high-performers move on. They want to work on a new problem space.
Don’t take it personal.
Ultimately, you want people on your team who are excited to be there.
A changing of the guard may actually re-energize your team.
If it feels like a departure is inevitable, follow the steps below to mitigate the impact:
Step 1: Start Preparing Immediately
You need to start preparing for a potential exit, now.
Here are 3 things to do right away:
- Dive in – ask questions and re-familiarize yourself with relevant projects and conversations, in case you must cover any gaps.
- Add redundancy – nominate a team member to shadow your high-performer, to begin knowledge transfer early.
- Check team pulse – set up 1:1s and listen for common themes that indicate risk of departure is widespread.
Step 2: Try To Keep the High-Performer On Your Team
At this point, your best option is to address the departure risk head on. Being direct is key.
Ask your high-performer how they are feeling about the team. Tell them you are worried they may leave. Reiterate their value, and ask them what they need to stay.
If it is reasonable – work like hell to make it happen!
Step 3: Try To Keep the High-Performer In Your Company
High-performers have significant institutional knowledge.
If you can retain this knowledge within the company, it positions you as a leader who cares about the company, not just your team (see mindset shift #1 in this article).
Offer your high-performer the space and time to interview internally. Make introductions on their behalf, and provide references and recommendations.
Step 4: Try To Keep the High-Performer In Your Network
If all else fails – ensure you maintain a strong relationship with your high-performer.
Let them know you care about their success – whether or not it is on your team.
You never know when your paths will cross again. In the meantime – your high-performer will continue to champion your product from afar.
In addition, a strong relationship lets you work with your high-performer to tell the right narrative about their departure. This minimizes the halo effect their departure may have on the rest of the team.
To the degree you are allowed, provide references and introductions to help them with their search. At a minimum, encourage transparency with your high-performer on their status and progress.
That feeling of support goes a very long way.
Don’t Wait Until It’s Too Late
The key to retaining your high-performers is to start early.
Reward their hard work along the way. It can be a financial reward, or something else of value. Even the simple act of providing learning opportunities is often enough to keep your high-performers performing.
Ultimately, we all want to work in an environment where we feel continually challenged, appreciated, and integral to the company’s success.
