Insights into the forces shaping our industry.
You’ve gone through the hiring process. Your recruiter has presented you with a short list of well qualified and fully vetted candidates. You’ve chosen the one to move forward with, an ideal fit both professionally and culturally for your role and organization. You’ve negotiated salary and benefits, and an offer was extended and accepted! Congratulations! Now the work on your end begins…how will you keep that candidate motivated, challenged, and retain them in your company for many years to come?
First, are you making certain the following are being met? With monthly or quarterly check-ins?
1. Ensuring opportunity (career advancement, challenge and self-improvement, formal training, on-the-job learning, evaluations and feedback, personal development, development that is equal to or exceeding the company growth rate
2. Is there a focus on people alignment? This must be done on a regular basis (company culture, relationships and camaraderie, senior leadership living up to their reputation, genuine quality of management, trust, collaboration, team spirit, team-building activities, and events)
3. Is the organization providing as much for the candidate as they’re expected to provide for the company? (growing market position, improving company reputation, improvement on the quality of product/service, are the company mission/vision/values being upheld, is there a focus on team diversity, does the organization have a focus on social responsibility?)
4. Regular follow up on the work the candidate was hired to perform (maintaining job-interest alignment, challenging/fulfilling tasks and responsibilities, providing a good work-life balance, focus on the quality of projects, is the candidate being given access to innovation, are they experiencing intellectual stimulation, does the impact the role playsfulfil the company’s vision)
Harvard Business Review has written many articles on retention. They’ve stated that even the most supportive managers face a tough choice in response to the challenge of retention: “Investing time and effort in their employees’ career development is often at odds with the metrics they’re measured against. Research finds that eight out of 10 companies focus on individual goals whereas just five out of 10 work toward the goals of the broader business unit.” HBR goes on to say, “Managers need to be measured against a new set of metrics that reflect their focus on the development of organization-wide people potential. These metrics could include the number of personal and career growth initiatives they’ve sponsored within their team and supported for people to explore outside of their team.
“Metrics might also cover the diversity and development of skills within the team, ideally linked back to data from the skills marketplace, and the percentage of vacant roles filled internally. These metrics reinforce the need for talent to flow within the organization, to support people’s aspirations for career growth…”
A Truelist article (1/7/2023) listed interesting employee retention stats:
• Three to 4.5 million US employees quit each month. (Apollo Technical)
• 76% of new workers want on-the job training. (Bamboo HR)
• The cost of losing an employee is 33% of their annual salary. (Tiny Pulse)
• Career development is the number one turnover reason for 22% of people. (Benefit News)
• 79% of people quit a job because of a lack of appreciation. (Tiny Pulse)
• About 50% of people have left a job because of a bad manager. (Tiny Pulse)
An article in EMERTIUS (1/2/2023) shared 14 employee retention strategies for 2023:
1. Invest in Employees’ Careers
According to LinkedIn, 94% of employees say they would stay with their company longer if it invested in their career development. In today’s economy, employees understand that they need to keep their skills sharp to remain competitive and move up the ladder.
2. Focus on Managers
Have you ever heard the old line “people don’t quit jobs, they quit bosses”? Well, often it’s true. A 2022 survey by Goodhire found that 82% of Americans would potentially quit their job because of a poor manager.
3. Recognize Employees’ Contributions
Everyone likes to feel valued, and that’s especially true in the workplace. A 2022 Gallup/Workhuman survey found that when employees feel recognized for their work, they are 56% less likely to look for new opportunities.
4. Reassess Compensation
In today’s competitive marketplace, compensation is an essential piece of any company’s retention strategy. No matter how valued an employee may feel, they are likely to look outside their current company if they feel inadequately compensated for their work.
5. Consider Your Benefits Package
Similarly, benefits are a major factor, with Forbes reporting that for nearly 6 in 10 employees, a company’s benefits package is the most important non-salary factor they consider when assessing a job.
6. Prioritize Work-Life Balance
Managers should regularly check in with employees to ensure they don’t have more on their plates than they can handle and to encourage open lines of communication about workloads.
7. Create Pathways for Growth
The world of work is changing fast, and employees know they need to keep moving or risk falling behind. Yet many worry that they lack opportunities for promotion and upward mobility within their current companies.
8. Improve Organizational Culture
While organizational culture may seem subjective, its impacts on retention can’t be denied. In fact, company culture is one of the key drivers of workplace satisfaction.
9. Prioritize Hybrid and Remote Options
In the “new normal,” remote and hybrid working is increasingly seen as the norm. In fact, a 2022 ADP survey found that 64% of Americans would consider looking for a new job if their current company required them to return to the office full-time.
10. Focus on Flexibility
In addition to remote options, employees increasingly prioritize flexibility in their schedules as one of their employee retention strategies.
11. Give Employees the Tools for Success
Employers should work with employees to ensure they have the equipment and productivity tools they need to be as productive as possible. It’s especially important to ensure that remote employees also have the tools they need to work effectively.
12. Support Employee Wellbeing
Perks like wellness reimbursements for gym memberships or massages, insurance coverage for therapy and mental health treatment, and even access to digital wellness or meditation platforms can all help employees feel more restored. More and more companies are offering mental health days in addition to sick days, vacation days and/or PTO.
13. Focus on Team Building
With less work taking place in person, it’s especially important to intentionally facilitate connections between employees.
14. Help Employees Find Purpose in their Work
We all want to make a difference to those around us—and many employees expect to do so in their jobs as well as their personal lives. According to McKinsey & Company, employees who feel that their personal purpose aligns with that of their organization are more engaged and more loyal to their employers.
In today’s tight labor market, focus on employee retention is crucial. Your organization shouldhave formal retention strategies in place. Be proactive. Your efforts and outreach must be done on a regular basis throughout the year, not only on an annual basis. If your employees feel valued and believe their company, manager(s), and senior leadership are invested in them, they will be far happier, loyal and ultimately more successful.