Retention & Growth
Keep your best people engaged, growing, and committed for the long term.
Retention Is the Real Game
Every departure costs 6-9 months of salary in lost productivity, recruiting, and training. The best retention strategy isn't counteroffers—it's creating an environment where your best people never want to leave in the first place.
"Train people well enough so they can leave. Treat them well enough so they don't want to." — Richard Branson
Why People Leave
Understanding and addressing attrition drivers
Top Reasons for Departure
Bad Manager
"People don't leave companies, they leave managers." The #1 reason for turnover.
No Growth Path
Feeling stuck with no clear path to advancement or skill development.
Below-Market Compensation
Feeling underpaid relative to market, especially when other offers come in.
Lack of Purpose/Impact
Not understanding how their work matters or feeling like a cog.
Burnout
Unsustainable workload without recovery time or recognition.
Early Warning Signs
- • Engagement drop (less participation in meetings, Slack quiet)
- • Working minimum hours, no longer going above and beyond
- • Suddenly taking more time off
- • Updating LinkedIn profile
- • Withdrawing from team social activities
Performance Management
Continuous feedback and development
The 1:1 Meeting
Regular 1:1s are the foundation of good management. Weekly or bi-weekly, 30-60 minutes.
1:1 Agenda Template
Their priorities (10 min): What are they focused on?
Blockers (10 min): What's getting in their way?
Feedback (10 min): Recognition and constructive feedback
Development (10 min): Career goals, growth areas
Their questions (5 min): Anything else on their mind?
Performance Reviews
What to Evaluate
- • Results achieved vs. goals
- • How results were achieved (values)
- • Skill development
- • Team contribution
Frequency
- • Formal reviews: Every 6-12 months
- • Light check-ins: Quarterly
- • Real-time feedback: Always
No Surprises Rule
Performance reviews should never contain surprises. If feedback is new to them, you failed as a manager. All critical feedback should be delivered in real-time, not saved for reviews.
Career Growth & Development
Creating paths for advancement
Career Ladders
Create clear levels with defined expectations for each role:
| Level | Scope | Example Impact |
|---|---|---|
| Junior | Tasks with guidance | Completes assigned work |
| Mid | Features independently | Owns small projects end-to-end |
| Senior | Systems/initiatives | Leads technical decisions |
| Staff/Lead | Team/area | Sets direction for domain |
| Principal | Organization | Company-wide impact |
Development Opportunities
Stretch Assignments
Give high-performers projects slightly above their level.
Mentorship
Pair people with more experienced teammates for guidance.
Learning Budget
Provide budget for courses, conferences, books.
Internal Mobility
Allow movement between teams to build breadth.
Compensation for Retention
Staying competitive as employees grow
Proactive Comp Reviews
Don't wait for people to have another offer. Review compensation proactively:
• Annual market benchmarking for all roles
• Adjust salaries to keep pace with market
• Equity refresh grants for top performers
• Proactive raises before they have to ask
Counter-Offers: Usually Too Late
By the time someone has another offer, they've already mentally left. Counter-offers work short-term but 50-80% leave within a year anyway. Better to never let it get there.
Equity Refreshes
As initial equity vests, top performers need refreshes to stay motivated:
Small refresh for performers
Larger refresh as cliff hits
Annual refreshes for top talent
Difficult Conversations
Handling underperformance and terminations
Addressing Underperformance
Don't wait. Address as soon as pattern emerges.
Concrete examples, not vague "you need to improve."
PIP with clear goals, timeline, and support offered.
Either they improve or you exit. Don't let it drag.
When to Let Someone Go
Clear Exit Signs
- • Consistent underperformance after coaching
- • Values violations
- • Toxic behavior affecting team
- • Loss of trust
Not Clear Exits
- • Role mismatch (try repositioning)
- • Skills gap (try training)
- • Bad manager fit (try new manager)
- • Temporary life circumstances
Offboarding Well
Ending relationships gracefully
Exit Interview Questions
"What prompted you to start looking?"
"What could we have done to keep you?"
"How would you describe your manager?"
"What would you change about our culture?"
"Would you recommend us as an employer? Why/why not?"
Alumni Network
Former employees can be future customers, partners, or boomerang hires:
• Part on good terms when possible
• Create alumni Slack/LinkedIn group
• Celebrate their next moves publicly
• Keep the door open for return
Boomerang Employees
15-20% of hires at some companies are boomerangs (former employees returning). They know the culture, ramp faster, and return with new skills. Don't burn bridges.
Congratulations!
You've completed the Startup Hiring learning path. You now have the knowledge to:
- ✓Know when and who to hire
- ✓Source candidates through multiple channels
- ✓Run structured, effective interviews
- ✓Close candidates with compelling offers
- ✓Onboard new hires for success
- ✓Build and maintain strong culture
- ✓Retain top talent for the long term
Remember: Your team is your company. Every hiring decision shapes your future. Invest the time to get it right.