As a former owner of a Management Recruiters International (MRI) franchise and executive recruiter, I spent seven years conducting hundreds of candidate interviews.
What I discovered was eye-opening: High-performing candidates consistently reached out to recruiters like me shortly after having conversations with their managers that did not go well.
Those poorly executed conversations were costing organizations their best talent, and as a recruiter, I was grateful they happened. But now, working with InsideOut Development, my mission has shifted: helping organizations transform those same conversations into powerful retention tools.
Before we dive into solutions, let us acknowledge what is at stake. Employee turnover does not just impact your bottom line through recruitment costs. It affects:
The good news? The most effective retention strategies do not require massive budgets or complex programs. They require intentional leadership and a shift in how managers communicate with their teams.
When I ask managers and leaders how much time they spend in conversation with their people, responses consistently range from 30% to 80% of their day. Think about that: 30% to 80% of a manager’s time is already dedicated to talking with their team.
This represents a massive opportunity. Your managers are already having these conversations. They do not need new activities or additional tasks. What they need is to repurpose these existing interactions to drive retention, engagement, and culture.
Currently, how do your employees feel when they walk away from conversations with their managers? Are they:
Nothing provides more obvious evidence of being recognized than being spoken to. Every time a leader intentionally communicates with an employee, they are recognizing that person.
Unfortunately, the opposite is equally true: Avoiding communication signals a lack of recognition.
According to research from Gallup and Workhuman (2022), employees at organizations that strategically invest in recognition are:
One of the least expensive forms of recognition is helping leaders understand that every conversation is a chance to recognize their people. Here are some simple ways to put this into practice:
1. Motivational Recognition: Conversations that inspire and encourageThese conversation types are “built-in” opportunities your leaders are already having. The key is ensuring they communicate positive recognition in every scenario.
The InsideOut Mindset is rooted in one powerful belief:
“Every person has the ability to learn and perform at a higher level.”
When asked, most leaders will say they believe this about their people. But here is the critical question: Does that belief get communicated intentionally in every conversation they have?
When your leaders’ conversations are driven by the InsideOut Mindset — communicating belief, confidence, trust, and assurance — something remarkable happens: employees do not return the recruiter’s call.
This inexpensive strategy of recognition through conversation strengthens organizational culture, reduces turnover, and creates stability at all levels.
As an executive recruiter, “burnout” was one of the most common words I heard from candidates seeking new opportunities. When leaders help people avoid burnout, retention naturally increases.
Over 20 years as a training consultant, I have conducted an informal capacity survey with thousands of managers and leaders. Here is what I consistently discovered:
Question 1: What percent of your employees’ capacity — skills, abilities, and talents — do they bring to bear on average, day in and day out?
Consistent Answer: 50% to 65%
Question 2: Who is responsible for capturing the remaining 35% to 50% of untapped potential?
Response: Leaders inevitably confess this is their opportunity.
Imagine two horizontal lines:
Many leaders hesitate to push people toward that maximum capacity for fear of causing burnout. This concern is valid, but it is based on a flawed assumption.
In an ideal scenario, those two lines would never meet. Why? As managers encourage people to access more of their current capacity (raising the bottom line), they must simultaneously provide opportunities to grow the top line, their people’s overall capacity.
This means providing opportunities that:
When people sense they are growing, developing, being trusted, and valued — when their ability to perform at a higher level is assumed by their leader — they do not call the recruiter back.
This is when your organization experiences the low cost of high retention.
1. Conduct Your Own Capacity Survey: Assess current utilization and potential
2. Identify Growth Opportunities: Map development paths for team members
3. Balance Push and Pull: Raise expectations while expanding capabilities
4. Monitor for Burnout Signals: Watch for warning signs and adjust accordingly
When you implement these two strategies, the impact is felt across the organization. Turnover costs decline as spending on recruiting, hiring, and onboarding decreases. Engagement increases as teams become more productive, collaborative, and invested in their work.
Additionally, culture strengthens, creating an environment where people want to stay, grow, and contribute. Performance also improves as employees operate at a higher capacity with less burnout, and the organization gains a competitive advantage by retaining the talent that drives results.
What makes these strategies especially powerful is how little they require financially. There is no need for expensive software platforms, large-scale program rollouts, or additional headcount.
The investment is simply in intentional leadership development and practical communication skills that leaders can apply immediately.
High retention does not have to be expensive or complicated. By focusing on two low-cost strategies, organizations can help leaders elevate the conversations they are already having and prevent burnout before it takes hold.
When leaders consistently communicate belief in their people’s potential and create clear paths for growth, something powerful happens: Top performers stop taking recruiters’ calls. They are too busy thriving in an environment that recognizes their value and invests in their development.
That is the low cost of high retention. That is the InsideOut advantage.
For more than 35 years, InsideOut Development has partnered with organizations worldwide to transform leadership and unlock human potential. Our evidence-based approach equips leaders at every level to drive engagement, performance, and retention.
Contact InsideOut Development to learn how your organization can achieve the low cost of high retention.