Employee retention numbers aren’t what they appear

Post about the great resignation: bit.ly/3rlyjoh

Remember the Great Resignation during 2021 and 2022? Employees changed jobs in record numbers when they were frustrated by work environments, lack of career growth, inflexible policies, and poor management.

Now, Gallup research reveals that the number of people seeking new job opportunities is the highest it’s been since 2015, while satisfaction with their employer has returned to a record low.

Gallup calls this era the Great Detachment. Employees want to leave but struggle to find new jobs, so they stay. They stay, but their hearts aren’t in it.

Your retention numbers may look good, but don’t be fooled.

Turnover may have tapered, but when people stay without being all-in, productivity slows and the quality of work diminishes. Plus, organization changes you have planned for 2025 will be resisted.

How would your company be impacted by reduced productivity and quality? How would your 2025 strategic objectives be impacted by employees feeling detached?

Obviously, there are significant business implications of the Great Detachment.

The good news is there are ways to reconnect with detached employees.

We talked about one of the most impactful actions in this month’s Culture Matters: Recognition.

Recognition and celebration aren’t just feel-good activities—they’re strategic investments in people. Employees who feel seen and valued are more engaged, more productive, and more likely to stay.

One of the most important elements of recognition is authenticity. When it’s phony to check a box, it can backfire.

To keep recognition authentic, so it matters for real, here are a few ways to recognize and appreciate others.

✳️ Understand what matters to your people. Ask them. Do those things.

✳️ Keep it small and consistent. Regular thank you notes are rare, which makes them matter.

✳️ Share publicly. Post Recommendations on LinkedIn and give book reviews on Amazon.

✳️ Notice people. Check in and let them know you see them every day, not just when there’s a formal ceremony.

✳️ Support their career goals. Contribute to their flow through Maslow’s Hierarchy beyond the paycheck.

Those actions cascade throughout organizations as people tell their friends, post notes publicly, and emulate the actions. They also reinforce what’s working, set the tone for the culture, and connect people with your purpose.

Being genuine about recognition impacts your leadership legacy.

People will remember how you treat them more than they will remember profit growth during your leadership.

As always, the Culture Matters conversation was robust and inspiring. Thanks to all who joined today! I can’t wait to see what the CM community does in 2025!

Customer Experience Insights: 5 Lessons from Costco’s Success

Are you ready for Christmas or Hanukkah (or both!)? Have you finished your shopping, finalized your travel plans, or decided on your holiday meals? If you're like me, this season turns you into a customer more often than usual.

From gift-buying to planning gatherings, I've been spending extra time shopping, dining out, and interacting with businesses. It’s made me pay closer attention to the customer experience everywhere I go. It was the topic of last week’s AI Roundtable, too, where we explored how AI technology can enhance customer interactions. And, it’s something Costco’s leaders shed light on during their recent earnings call.

With all that, the customer experience has been top-of-mind for me.

As you gear up for 2025, here are some takeaways from Costco’s strategy that might inspire how you think about your own customers:

1. Value is Non-Negotiable

Costco understands that in times of economic uncertainty, customers are hyper-focused on value. They responded by lowering prices on some key items, even in an inflationary market. Leaders can take note: delivering value—whether through pricing, added benefits, or standout service—keeps customers loyal even in challenging times.

2. Adapt to Customer Behavior

As customers shifted their spending to essentials and away from discretionary items, Costco adjusted its inventory to align with these changes. They also leaned into trends like more home dining, promoting products that support this lifestyle. The lesson? Watch for shifts in your customers’ priorities and adapt quickly.

3. Listen and Act on Feedback

Costco takes customer feedback seriously, using it to refine products, promotions, and services. For your business, inviting and acting on customer input not only helps you improve but also shows customers you value their opinions.

4. Build Long-Term Loyalty

Costco’s membership model ensures a steady stream of loyal customers who see ongoing value. Whether through loyalty programs or consistent service excellence, think about how you can foster long-term relationships with your customers in 2025.

5. Elevate the In-Person Experience

While e-commerce remains a priority, Costco noted that in-store traffic is thriving, too. They’ve focused on staffing and layouts to make shopping as efficient and enjoyable as possible. Leaders can apply this principle to physical or virtual customer interactions: make the experience seamless, pleasant, and worth their time.

As we head into 2025, the way you think about and serve your customers will have a direct impact on your success.

Costco’s example is a great reminder that understanding, adapting to, and delighting your customers isn’t just good for them—it’s essential for your business growth too. 

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As we think about creating exceptional customer experiences in 2025, I’m excited to share the new Customer Journey Guide. This guide is designed to help you map every step of your customer’s experience—from their first interaction to long-term loyalty—so you can deliver value, adapt to their changing needs, and build meaningful relationships.

Exploring AI’s Role in Customer Touchpoints and Personalization

AI and the Customer Journey:
Leadership Insights for Building a Culture of Customer-Centricity

At Voyage Consulting Group, we know that great leadership and strong company culture drive exceptional customer experiences. This morning’s AI Roundtable explored how to leverage AI to refine customer touchpoints and personalization strategies—two critical elements of fostering customer trust and loyalty.

#1 Optimizing Customer Touch Points with AI
From the first impression to the moments that inspire customer loyalty, every touchpoint matters. In our discussion, we examined how AI tools, like predictive analytics and chatbots, can help leaders create seamless and memorable interactions. But optimizing touchpoints isn’t just about adopting the latest tech—it’s about embedding a culture of customer-centricity within your organization.

Key leadership takeaways:

• Empower teams to explore how AI can enhance customer interactions without replacing the human connection.

• Use AI to analyze data holistically, anticipating customer needs and uncovering hidden opportunities to delight them.

• Recognize that technology alone doesn’t create loyalty—your culture of trust, care, and excellence does. Commonly used chatbots often miss the mark.

#2 Balancing Personalization and Privacy
As AI enables increasingly sophisticated personalization, leaders must balance leveraging data with respecting customer boundaries. Over-personalization can erode trust, making it essential to align AI strategies with your company’s values and ethical standards.

Key leadership takeaways:

• Foster a culture of transparency: Be clear about how and why customer data is being used.

• Set the tone for ethical AI by establishing policies that prioritize privacy and consent while enhancing customer relationships.

• Encourage cross-functional teams to continually evaluate where personalization helps—and where it might hurt—the customer experience.
  

The Leadership Imperative

The insights from today’s session highlight an important truth: AI is a tool, but leadership and culture are the true drivers of a great customer experience. Leaders who intentionally shape a culture of innovation, empathy, and trust will harness AI to not only meet customer expectations but exceed them.

How is your company approaching AI’s role in the customer journey? Let’s discuss how thoughtful leadership and a strong culture can guide your strategies for success. Reach out today!

Check out our upcoming webinar on The Basics of Gen AI. The book and webinar can help leaders use AI strategically to accomplish their goals.

Organization Resilience: How to boost company culture after a setback

Setbacks are inevitable in any organization.

Setbacks are inevitable.

Coming back from them is not.
What will you do?

Coming back from one is not.

The ability for a company to thrive after a crisis depends on actions of the leadership. The way we address setbacks can have lasting impact on people and performance and the long-term viability of our companies.

Last year, McKinsey research said 75% of risk managers within companies believe strengthening integration of resilience into the strategy process is an important action companies can take. (Source)

We talked about it in Culture Matters recently so our companies/employers/clients can be proactive when setbacks occur. We talked about three types/examples:

1.  Poor Communication. Companies reeling from poorly communicated RTO practices. Without thinking through their Return to Office policies, companies are jeopardizing employee retention and reputation. Some of the policies we’ve all seen publicized are so out of touch they could have been written 100 years ago. Or, even 10 years ago.

2.  Systemic Issues. Systemic issues challenge culture all the time, and those get magnified during a crisis. Boeing is a good example. The first plane crash was a setback. The second and third revealed a systemic issue that needs serious attention and oversight.

3.  Mistakes. Another recent setback shared today is being faced by Mattel this week. On Monday, Mattel pulled their new “Wicked” dolls off the shelves because the packaging on several character dolls includes a typo in the web address. Instead of the website leading to the film’s webpage, it leads to an adult website. (Source) There are setback like this which can be rectified relatively quickly; however, the financial implications could be felt long-term.

We talked about several other company cultures, setbacks, actions, and outcomes. Our hope was to talk through these so we could build or update actions we take when there are setbacks.

Here’s what we came up with, along with a few I’m adding to round out a process.

1) Admit It: The first step is to admit there is an issue. Not publicly, yet, but to yourself. There have been so many publicized and analyzed business setbacks over the years, one would think all the business leaders everywhere know what to do when one occurs. Yet, often, the leaders will not accept there is a setback, mistake, or issue. Their obstinance delays rectification, which can exacerbate the issue on people, the environment, and financials.

 2) Restore Trust: Leaders need to re-establish trust and openness with their direct reports, internal teams, and external stakeholders, especially when a setback erodes confidence in leadership.

• Acknowledge and Apologize for Mistakes: If leadership played a role in the setback, openly admit to errors and take responsibility. Authentic accountability demonstrates humility and integrity.

• Actively Listen to Employees: Hold listening sessions or open forums to hear employees' concerns and perspectives. This shows a commitment to understanding their experiences and needs.

• Follow Through on Commitments: Rebuild trust by setting realistic goals and delivering on them consistently. Small, steady wins help restore confidence in leadership.

 3) Strengthen Core Values: Leaders can ensure that core values remain intact and visible, even when morale and unity are low

• Connect Decisions to Core Values: When explaining recovery strategies, highlight how each action aligns with the organization’s values to reinforce their importance.

• Create Value-Based Recognition: Recognize and reward behaviors that exemplify the company’s core values, even during tough times, to reinforce cultural alignment.

• Incorporate Values into Daily Routines: Encourage teams to discuss how core values can guide their work during meetings or project planning sessions.

4) Rebuild Team Morale: Leaders can reconnect team members, especially if they feel disillusioned or uncertain about the company’s future.

• Celebrate Small Wins and Milestones: Highlight achievements and progress, no matter how minor, to remind the team of their collective capabilities and resilience.

• Provide Opportunities for Connection: Organize team-building activities or informal gatherings to rebuild camaraderie and foster positive relationships among team members.

• Reinforce Individual Contributions: Acknowledge and express gratitude for the unique strengths and efforts of team members to boost their sense of value and belonging.

5) Communicate Authentically in Times of Recovery: Leaders need to be transparent and effective when addressing setbacks with teams, even if they cannot reveal everything discussed behind the scenes.

• Be Transparent About Challenges: Share what you can about the full context of the setback, including its impact and the steps being taken to address it. Honesty builds credibility.

• Use Empathetic Language: Show genuine care and understanding of how the setback affects employees on a personal level, demonstrating emotional intelligence.

• Provide Regular Updates: Keep communication consistent with updates on progress and recovery efforts. Frequent touchpoints ensure employees feel informed and involved.

6) Take Practical Steps for Moving Forward: Leaders and culture advocates can take specific steps to bring the team back together and create a positive outlook after a setback.

• Co-Create Solutions with Employees: Involve employees in recovery planning and encourage their input, fostering ownership and engagement in the path forward.

• Focus on One Clear Goal at a Time: Simplify efforts by setting a single, achievable objective to give teams focus and a tangible sense of progress.

• Revisit and Reframe the Vision: Share an updated vision for the future that inspires hope and aligns with lessons learned from the setback.

Leadership is hard. It is even harder for leaders who do not learn how to recover after setbacks.

🐣If you're too chicken to face setbacks, step aside.

For information about Culture Matters, click here.
All are welcome because culture matters to everyone.

The Real Cost of Catering to Toxic Clients: A Culture Perspective

Culture Matters, the monthly forum that tackles topics that impact company culture, tackled toxic customers in the conversation held last Friday, October 18, 2024.

Toxic customers, while rare (hopefully!) have a ripple effect on the company, people involved, and people who see the toxic behavior tolerated. The company can be impacted financially by scope creep, depleted morale, disengagement, turnover, and damaged reputation. Employees can be impacted when customers berate them, disrespect boundaries, and demand services beyond what is agreed upon.

When leaders allow disrespectful customers to continue treating employees poorly, they send the signal that their people do not deserve respect.

We have not had toxic clients in recent years, but some clients have. One executive client, Pam, shared about the client point person, Dwight, being so toxic that no one else will deal with him. Pam (names changed, obviously) said Dwight is rude, belittles the women account leaders, and demands they are available 24/7. No one wanted to work with Dwight, but his account brought in decent revenue. His account landed with Pam’s team because she was thick-skinned and could handle him.

And, she could. She did not take his treatment personally. The interesting thing Pam noted, however, was that her bosses would not speak with Dwight about how he treated their colleagues. Their lack of courage showed a side of leadership that discouraged her, and she lost respect for them saying, “They don’t respect me very much either.”

The Culture Matters conversation included a discussion around how to recognize the toxic behavior early so we can head it off before it gets out of hand. A few things to watch for…

◼️ Natural stages in the client relationship (i.e., new point people, account changes)
◼️ Consistent disrespect, boundary violations, or manipulation
◼️ Missed or constantly late deadlines, payments, meetings

To prevent toxic relationships, prevent them from occurring in the first place by onboarding clients to your company’s way of working. Include communication styles and expectations, boundaries (i.e., emails are read between 9am and 6pm), workflow, and confirming project scope.

 Seek to bond with clients early and often so communication is clear all along and relationships don’t have time to sour.

Here are a few other things discussed in this month’s Culture Matters:

◼️ Examples of Toxic Client Behaviors: Participants shared examples of toxic behaviors, including constant disrespect, unreasonable demands, aggressive communication, arguments about fees, and manipulative tactics.

◼️ What Non-Leaders Can Do: It’s important for employees to document interactions, escalate issues when necessary, and maintain professionalism while protecting their well-being.

◼️ What Leaders Can Do: Leaders have a responsibility to set boundaries, provide support to employees, and take decisive action when a client relationship becomes untenable. Discern how the values of the company align with the behavior you are tolerating.

The company culture will become the worst behavior you tolerate, so be careful what you expect your employees to accept. Be intentional about the behavior you accept.

 One of the worst statements in the history of business is: the customer is always right. They are not always right, and the pressure of that expectation contributes to toxicity. While there’s no need to be harsh when a client is wrong, bending over backwards for clients who are not only incorrect but also toxic goes beyond what’s reasonable for any company or employee to endure.

If you take care of your employees, they will take care of your customers. The Ritz Carlton, known for exceptional customer service, has this philosophy nailed.

"We are superior to the competition because we hire employees who work in an environment of belonging and purpose. We foster a climate where the employee can deliver what the customer wants. You cannot deliver what the customer wants by controlling the employee." 

Horst Schulze, Former Ritz Carlton President

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Join the Next Culture Matters Session!

Register for our next Culture Matters discussion on November 15, 2024, where we'll dive into “How to Boost Your Culture After a Setback.” It’s a perfect follow-up to this month’s conversation, offering strategies to rebuild and boost culture after challenging times. We look forward to seeing you there!