When a top executive leaves an organization, everyone scrambles to fill that key vacancy. But in the hurry to do that, a far bigger turnover problem is often overlooked.
When a key executive leaves, everyone who reported to that executive should be considered a "flight risk" - because the second tier of managers are at a significantly increased risk of leaving the organization for at least a year after a key executive leaves. So what causes that?
Stanford Professor Jeffrey Pfeffer wrote an intriguing post about the psychology behind hiring an outsider for a top position, and why so many fail.
"Filling senior-level positions from outside sends a clear message to the current executive team-sorry, you’re just not good enough. And since outside CEO succession almost invariably results in turnover in top management as the new person brings in his or her own team, the current senior-level managers get disheartened. They naturally begin thinking about how to find a new job instead of concentrating on improving results at their current company."
So when it comes to executive turnover, just remember the adage "When it rains it pours" ... then go bolt the exit doors.
To gain more perspective on performance management and employee turnover, visit "What Drives Employee Retention and Employee Turnover?"
Topics: Employee Turnover
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