The document emphasizes the critical role of managers in building strong relationships with employees, which are essential for talent retention and performance. It discusses the evolving psychological contract between employers and employees, particularly among millennials who seek flexibility and supportive work environments. Companies must enhance recruitment strategies and managerial approaches to meet the changing needs and expectations of the workforce to retain talent effectively.

2. Great managers inspire talented people to stay with a company. Even if
a company offers inspiring leadership, great benefits and perks, good
pay and training programs, employees base their tenure on the quality
of the relationship with their manager. Successful talent management
requires managers to consciously engage employees to perform at their
highest levels.

3. Managers define and design the work environment by the rules they set
and how they interact with their employees. Great managers
consistently engage employees more effectively in all areas by building
one-to-one relationships with them. Employees who are very satisfied
with their managers maintain an excellent level of performance and
productivity while having longer tenure.
Manager Performance Assessments

4. The key word is relationship – that connection between the employee and
their manager. The Manager/Employee relationship is the key
component of the psychological contract that exists between the employee
and the organization.

5. Employers now are less able to provide stable long-term employment
and in turn the psychological contract with their employees is becoming
weaker. Not only is the competition for qualified candidates increasing
but the loyalty of existing employees is decreasing.

6. Recent studies by Deloitte and Gallup confirm that a majority of the
workforce is browsing for jobs. Deloitte found that a majority of
millenials are already planning their exits. Gallup’s most recent State of
the American Workplace showed that 51% are actively looking for new
jobs. Research from Salary.com shows that 23% of employees look for a
new job every single day.

7. The first elements of the psychological contract are formed even before the
employee is a member of your company. The challenge for those people
who design your company’s recruitment and attraction strategy is to
decide what to focus on. What should be highlighted and what should
be minimized to potential employees? During hiring interviews the
candidate is analyzing the organization as much as the interviewer is
analyzing the candidate.
How Strong is Your Company’s Psychological Contract?

8. Research has demonstrated that recruiter behaviors and hiring
interview experiences contribute to a candidate’s perceptions of the job
and the organization. These perceptions in turn predicted
attraction. Once hired, every interaction of the manager/employee
relationship will either add to the psychological contract or take away
from it. How the manager views talent management will be a powerful
predictor of the status of the psychological contract. How Do Your
Managers Define Talent Management?

9. Employees prefer to be approached from a psychological perspective,
rather than a non-human, mechanical or machine perspective. Talent
management is about appealing to the employee’s preferences and
motivating them to perform using their strengths, in roles that allow the
use of those strengths. Today, an increasing proportion of the
workforce is made up of technologically savvy millennials. Flexibility
is the number one reason millenials are attracted to a company.

10. Yet, many managers today view flexibility (i.e. the ability to work from
home) as a perk or a reward. This outdated manager viewpoint creates
an immediate disconnect with potential employees and it adversely
impacts the first step in the talent management process, attracting
potential employees.

11. Research is showing that this new generation of workers, mainly drawn
from the millennial generation bring a different psychology to the
workplace. They are much more flexible. Work is going to be a less
central part of their lives. Therefore, it’s important to show flexibility by
supporting a connected workplace. Smart recruiting is about
understanding the psychological needs of your candidates (i.e. your
potential workforce).

12. What is the quality of the employee relationships developed by our
Managers?
Do we have a way to resolve conflicts in our Manager-Employee
relationships?
How can this employee best be motivated, coached and rewarded for
longer retention?
Can Your Company Answer These Questions?

13. How strong is the Psychological Contract with our employees?
How do our Managers define Talent Management?
What company themes should be highlighted and minimized in our
recruitment strategy?
Do our hiring interviews enhance the attraction to our company?
Does our company support the Flexibility desired by Millenial
candidates?