Research published by the Academy of Management confirms what you probably already knew–when someone leaves your office, it’s a catalyst for others to leave too.
But when an agent leaves, it doesn’t affect the retention of remaining agents in the same ways.
If a low performer leaves (voluntarily or involuntarily), the retention rate of remaining high performers increases.
Why? Because high performers believe the standards of the group are increasing, and the organization is improving.
If a high performer leaves, other high performers become more open to leaving too (highs follow highs).
The follow-on attrition ratio for high performers is about 1:1.
If you lost three high performers in the last six months, you’ll likely lose three more in the following six months.
By contrast, low performers don’t follow high performers when they leave.
Why? Because low performers don’t see themselves as able to capture better opportunities like a high performer can. To avoid losing what they have, they stay put.
Lessons to be learned:
1. Do everything you can to retain your high performers.By retaining highs, you keep other highs from leaving, and you keep your office from becoming a safe harbor for low performers.
2. Focus less on the retention of low performers.When you lose a low performer, it has a minimal effect on your office’s production, and it helps you retain your high performers.
Building a high performing office has always been about hiring talented agents and hanging on to them.
But retaining your best agents is more important when you see the multiplying effect of losing high performers.
