How to know if you're mistaking employee loyalty, also known as "nesting," for retention when ... [+]
Employees are becoming increasingly comfortable staying longer or “nesting” in their current roles due to the stability employers provide. But don’t let outward behaviors deceive you. It’s easy for business leaders to mistake “nesting” as loyalty to the company and recognize it as retention when in fact it might just be something else.
Statistics show that as many as 51% of workers say they are watching for or actively seeking a new job. And 79% of employees say they must perform out of fear to prove they are working, while many of them are job hunting. Keeping employees for the long term involves continuous work and careful planning. Employers need to do more than just offer a stable job; they need to make sure employees feel appreciated, have chances to grow and feel like they belong to the company.
I spoke with Kristen McGill, chief people officer at ZayZoon, who explained to me why employers must remain vigilant of retention rates. I asked her if nesting is positive or negative and what can be done about it. She said to be aware of the trends but don’t get caught up in them and offered three actions leaders can take:
1- Build the right culture. “Employers should focus on building the right culture and internal programs to take advantage of lower turnover as a result of nesting,” McGill advises. “Nesting gives employers a chance to make a positive impact and double down on the employee experience, fostering long-term retention and growth, even if that looks different to different people. Maintaining a strong People function is a constant juggling act. When nesting means you don’t need to focus resources on recruiting, you can shift focus to other areas. During this time, employers can strengthen their core benefit and perk offerings, while bolstering development opportunities to build trust with employees embracing the stability in their current roles.”
McGill says when employers invest in attractive benefits like financial wellness tools, childcare support or increasing work flexibility, they demonstrate a commitment to their employee's needs and offer more job security in a fluctuating market. She adds that the investment doesn’t just help with retention, but it boosts employee engagement, leading to a better culture and higher productivity from those “nesting” employees.
“When it comes to leadership in an organization, they are ultimately responsible for creating meaningful connections with their teams. That also means giving their team members a voice and demonstrating a willingness to acknowledge feedback and take action,” McGill notes. “It is important for leaders to remember that there can still be significant growth within a role even for those not looking to climb the corporate ladder.”
She asks, “Are there opportunities to provide new or evolved responsibilities, or exposure to an area of interest or special project even without a desire to change roles?” and confesses that she has personally led an individual who openly said they didn’t want to lead or climb the ladder, that they simply wanted to keep doing the things they had spent decades getting really good at.
“Over time as I spearheaded new projects and helped them see more creative ways to do their existing work, they quickly changed their tune,” she states. “They realized they were capable of even more than they thought. They just needed a leader who would help them find the right work to get them inspired.”
While some employers might see nesting as complacency or stagnation, McGill insists she sees it as a new opportunity to build better connections with employees. “Employers should make the most out of the phenomenon by fostering a culture that makes employees want to grow with the organization whether it’s within the same role or level of the organization or not,” she stresses.
2- Look for the signs. “Signs of employee nesting in the workplace can vary from employee to employee however significant swings in behavior should be taken as a signal that something isn’t quite right,” McGill emphasizes. “The stronger the relationship between a manager and the team, the more easily they will not only spot this but know how to address it in the way that the team member needs. In some cases, employees might maintain a steady level of performance, without under or over-achieving and simply meet the expectations for their role.”
First and foremost, McGill believes it’s important to assume positive intent. She suggests being proactive as an employer and putting opportunities in front of your team. She recommends directly asking someone to take on a new challenge when you see unrealized potential. “If employees are declining these opportunities, work to understand what they think would be a better fit.,” she recommends. “Perhaps there are ways to help them build skills for where they want to focus next.”
Instead of focusing on how to spot this trend, McGill advises that employers work to build a culture that prevents it in the first place. “When you have a culture and clear expectations for high performance, you create an environment where everybody regardless of role or level in the company is expected to earn their spot on the team every day,” she points out. “There is no room for nesting in these teams as nesters will quickly feel out of place. Years ago, for one of my teams, we had a value around raising the bar for performance. I found myself in an exit interview, where the departing team member said, we always provide all this recognition for those doing these really big, incredible things. Where is the praise for “just a good day’s work”? It was eye-opening. Our culture was working and they had clearly made the right decision to move on.”
3- Distinguish between nesting and loyalty. According to McGill, nesting employees are content where they are, embracing their current pay, responsibilities and the stability of their organization. She explains that they’re likely avoiding discussions about professional development or their next role, creating a barrier and disconnection with their employer.
She continues explaining that loyal employees are more likely to do the opposite. “Another way to look at this is in understanding employee engagement,” she says. “Simple tools like engagement surveys can help employers spot the difference. An engaged employee who has a sense of purpose in their work, who understands why they matter, and how they fit into the greater picture of their team or their company is highly unlikely to become complacent. It is the role of the leader to connect these dots for the employee. Loyal employees are active contributors looking to grow within their role, level up their team, and drive impact for the business wherever they can. Using tools like an engagement survey will allow employers to spot trends and potential warning signals early.”
McGill cautions that employers shouldn’t mistake nesting for loyalty. “This oversight can risk losing the 51% of workers who are keeping an eye out for a new role,” she concludes. Instead, this is the time to focus on creating a better culture and programming that prevents nesters from getting comfortable.”
