There’s a belief out there — still very much alive in small business land — that if you hire good people, you’ll get good performance. That if you “treat people fairly,” they’ll stick around. That if you tick the compliance boxes, you’ve done your bit.
Let’s be blunt: compliance alone is not a retention strategy.
It keeps you out of trouble, sure.
But it doesn’t build loyalty.
It doesn’t develop leaders.
And it definitely doesn’t stop good people from walking out the door when things get hard, unclear, or unrecognised.
Where Most Businesses Are Sitting: Level 1
According to the Employee Experience (EX) Maturity Model, most small and medium businesses sit at Level 1: Transactional.
✅ Basic processes.
✅ Payslips go out.
✅ Leave gets approved.
❌ But no meaningful systems to support, develop, or retain people.
This level is all about efficiency and compliance. But the data is clear — it has minimal impact on engagement or retention.
And if you’ve ever had that moment of “why are we losing good people?”
Or “why is this new hire already burning out?”
Or “why does it feel like everyone’s disengaged, even though nothing is wrong?”
Welcome to the space between.
The Myth of “Good People Will Just Perform”
Hiring great people isn’t enough. If you throw them into a vague, inconsistent, feedback-starved culture — they will falter. Even the best ones.
Because performance doesn’t happen in a vacuum.
It happens in:
- Clear expectations
- Consistent recognition
- Strong leadership
- Psychological safety
- Purpose and alignment
And none of those are delivered through compliance alone.
What Compliance Doesn’t Give You
Compliance ensures you:
- Pay correctly
- Manage entitlements
- Follow Fair Work
- Avoid legal disputes
Which is all critical. But here’s what it doesn’t do:
- It doesn’t tell you why someone really left.
- It doesn’t help a leader who avoids performance conversations.
- It doesn’t stop passive disengagement.
- It doesn’t create culture — it only polices it.
If your strategy is based on “meeting your minimum obligations,” you’ll keep getting minimum effort, minimum loyalty, and maximum turnover.
The Real Work: Moving Beyond Minimum
The EX Maturity Model outlines a path forward:
- Level 2: Supportive — Where flexibility, wellbeing, and communication start to evolve
- Level 3: Purpose-Driven — Where culture, leadership and career development are aligned
- Level 4: Equitable Growth — Where people are your strategy, not just a resource
The higher you go, the better your business outcomes.
The businesses that get this? They’re seeing 2x productivity. 3x retention. Lower recruitment costs. Stronger leaders. Teams that care.
But It Won’t Happen on Its Own
You need a plan.
One that’s clear, practical, and built for your business — not just a whitepaper.
That’s exactly why I created Engagement Champions: Retain by Design™.
✅ We diagnose what’s really causing turnover (hint: it’s rarely just money)
✅ We co-design systems that fix the issues — structure, feedback, recognition, clarity
✅ We coach leaders to embed it all into the day-to-day
No guesswork. No fluff. Just culture that sticks and people who want to stay.
If You’ve Been Told Compliance Is Enough — Read This Twice
Yes, compliance is important.
But it won’t build trust.
It won’t stop dysfunction.
And it won’t give your best people a reason to stay when things feel off.
That’s your job. And it starts with doing the real work.
🛠 Ready to move beyond the minimum?
Let’s stop the churn — and build something worth staying for.
Learn about Engagement Champions: Retain by Design™
Or get in touch and I’ll walk you through what it could look like in your business.
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