The Performance Paradox: How to Improve Performance and Keep Great Staff

You work hard and have a great product or service. but how can you keep good staff and improve performance too?

Businesses all over Australia are feeling the pressure. Leaders are worried about performance, and employees are leaving for just a little more money. It can feel like you can’t push for better performance without risking losing your good staff. But what if I told you that you can actually do both—keep your employees and improve performance? This is what I call the Performance Paradox.

The Hard Truth About Employee Retention

Fact 1: Some People Will Leave No Matter What

Some people will leave no matter how great your business is. Whether you have a strong company, a good role, a great culture, or even fair pay, some employees will leave for a bigger salary. And that’s okay—you can’t change it.

Fact 2: Money Isn’t the Main Reason People Leave

But here’s the truth: money is not usually the main reason people leave. Most people leave because they have poor relationships with their boss, feel they don’t have enough flexibility, or don’t feel appreciated.

Right now, the job market is tough, but it’s important to think beyond just how much money your business can offer. The real reasons people stay are often about feeling valued, appreciated, and connected to the company’s mission. When you address these things, you can improve both retention and performance.

How to Improve Performance and Keep Great Staff

1. Performance Targets & Clarity

Here’s a surprising fact: 93% of employees don’t understand their performance goals or what the company is trying to achieve. Only 7% of companies get this right. If you’re reading this, you’re probably in the 93%. Improving clarity around goals is cheap and easy, but it makes a big difference. When employees know what’s expected of them, they work harder and feel more motivated.

Research from Harvard Business Review shows that setting clear goals and engaging with employees can increase productivity by 20% and improve quality by 40%. Think about the impact that could have on your business!

2. The Power of Feedback

Employees need feedback. Without it, they can’t improve. Instead of waiting for an annual review, give feedback regularly. Employees prefer hearing what they’re doing wrong so they can improve, rather than receiving no feedback at all.

3. Leadership Communication

Does your management team clearly explain the company’s goals? It’s not enough to assume that everyone knows what’s going on. Patrick Lencioni, an expert on leadership, says that your team needs to hear the same message seven times before they fully understand it.
When leaders communicate the company’s plan clearly, it helps the whole team align and work together. This drives performance.

4. Leading vs. Bullying

Finally, how do your managers lead their teams? Do they coach and support, or do they push their employees with pressure and bullying? People usually don’t underperform because they’re not capable—there are other reasons, like lack of support or unclear expectations. If your managers are bullying employees to get results, it’s no wonder they’re looking for another job.

One of my clients had two employees leave for more money but come back after realizing there’s more to a job than just pay. Because he let them leave on good terms, it showed the rest of his team that culture and respect matter. Even in tough industries like construction, people want more than just money.

Take Action Now

There’s more to keeping employees than offering a higher salary. In today’s market, it’s about offering recognition, clarity, and support. By giving employees more reasons to stay, you can improve your business results.

Sit back and evaluate your business against these 5 aspects of performance. Rate your business out of 10 for each one. How well do you score, what can you do to lift your management performance and lead your business to more success and profitability.

About the Author: Mark Pope – Business Growth & Leadership Expert

Mark Pope is an accomplished business leader with a proven track record of driving growth and transformation across industries like healthcare, consulting, and professional services. As a former CEO, he successfully expanded a small team into a national organisation, working with high-profile clients such as BlueScope, Victoria University, and Austal Ships.

Since 2020, Mark has dedicated himself to executive mentoring and leadership development, partnering with organisations like Visy, BBQs Galore, and Planet Fitness to strengthen leadership capabilities and foster high-performance cultures. His expertise lies in building trust, accountability, and effective leadership strategies that deliver real results.

Find out how Mark can support your leadership journey—click here to view his Essemy profile.

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