Academy of Management

Effective Performance Management Helps with Retention

By Daniel Butcher

As a greater number of managers take on more responsibilities that organizations used to assign to human-resources staff, many could benefit from training so that they can improve the experience of candidates and new hires during the interviewing and onboarding processes.

Academy of Management Scholar Carol Kulik of the University of South Australia said that managers make a difference in virtually every stage of an employee’s life, from recruitment, interviewing, and onboarding to day-to-day work and performance management.

“As a result of the COVID pandemic, we moved so much of the recruiting process—interviewing, hiring, and onboarding—online, and we’re never going back because online is cheaper and easier,” Kulik said. “But as a result, employees aren’t getting the kind of onboarding experience that they used to get where they were in a cohort with other new employees and had a chance to ask questions face-to-face.

“So now that’s the responsibility of the line manager, to fill in the gaps to help the new employee form relationships and encourage them to be proactive,” she said. “Nobody’s thinking about how that line manager is going to develop those skills.”

Another example Kulik points to is at the other end of employees’ careers, when they are considering leaving the organization for another opportunity or retiring. Line managers’ actions at this point can make or break an organization’s retention efforts.

“We know from research that the final interaction that you have with your manager, that one event is more important in determining how you feel about the company than anything else that’s happened in your entire career history,” Kulik said. “And yet, line managers aren’t prepared for that moment when an employee says, ‘I’ve got another job opportunity; I’m leaving.’

“Nobody’s taught them how to respond when an employee comes in and says they’re leaving, and we really depend on line managers to make sure that employees leave their jobs with a good attitude toward the company,” she said. “We count on them to be ambassadors or alumni.”

Another example Kulik gives is managers’ role in diversity, equity, and inclusion (DEI). She has conducted research focusing on age and gender and how leaders make workplaces to be inclusive for a wide range of people.

“You can have the best DEI practices in the world, but it’s the individual line manager who has to enact those practices,” Kulik said. “Mature-age employees tell us that they come to their line managers when they need a very small accommodation, for example, changing their shift or changing the size of the packages that they’re loading.

“And they tell us again and again that their line managers aren’t very receptive,” she said. “Line managers are used to treating all the employees exactly the same way.

“There’s a whole range of activities where we can point to the line manager as the key variable.”

A sample of Kulik’s AOM research findings:

Author

  • Daniel Butcher is a writer and the Managing Editor of AOM Today at the Academy of Management (AOM). Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, as well as Crain Communications’s InvestmentNews and Crain’s Wealth, eFinancialCareers, and Arizent’s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor’s degree from the University of Colorado Boulder and his master’s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.

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