Businesses can only operate to their maximum potential when they have the right people and human resources. However, over the past couple of years, talent retention has plummeted. The result of this has been an employment trend known as the Great Resignation, with a reported 85% of UK businesses being affected by leaving employees. This is a trend that is being felt across the globe.
London-based Unit4 found in its 2022 Business Future Index survey that 36% of its respondent organisations struggle to find and retain talent. They also report that over 62% of organisations are prioritising attracting and retaining talent over the next year— a feat easier said than done. The Index further highlights challenges to talent retention, including flexible working policies and the enhancement of talent strategies.
Business leaders must take decisive action to attract and keep their top talent. This ensures business success and continuity.
Role of talent retention in business success
Talent retention has a direct impact on a business’s performance, particularly in terms of turnover and productivity. More than just high retention, you should also look to improve quality retention. As a CIO post on employee experience explains, employees who stay in companies willingly are more engaged in their jobs.
69% are more likely to be high performers, and 52% are more likely to work above and beyond their daily responsibilities. These statistics prove that talent retention should remain a top priority. To not do so means constantly training new hires, which is both a time and resource drain.
How to improve talent retention correctly
Foster a human-centric culture
CIO goes on to expound how office culture plays a vital role in employees wanting to stay with companies. For one, they suggest a top-down office culture to enhance the employee experience. A concrete way to do this is to offer workflows and business processes, such as hybrid or remote work arrangements, built around human physical, cognitive, and emotional needs.
Offer a career development path
Many people who have resigned have claimed to have minimal conversations about career development with their superiors. As an LHH report on internal talent mobility showed, only one in three workers gets to discuss career opportunities with management in a single year.
While there is no magic formula for how many conversations about career development a company should offer, an open channel encourages employee engagement and interest. There should be a mix of formal and informal conversations to keep the dialogue going. This guarantees job growth and continuous learning for employees.
Allow workers to find purpose in their work
In the same Unit4 Index referenced above, it’s clear that companies must do their part to share their workers’ values and views. The more employees feel that their values align with their company, the more they tend to be satisfied in their roles. Two such priorities are currently ESG credentials and diversity.
As such, you should generate initiatives that allow employees to contribute to these causes. It can be as simple as going paperless or establishing an informal water cooler channel where employees can share their advocacies freely.
Empower your team
Employee retention is a result of a give-and-take between employees and workplace leaders. You should be able to recognise and acknowledge how every employee offers a unique contribution to the team, as we previously discussed in our ‘Run Your Business Like A “Clockwork”- Here’s How?’ article. Identify each person’s strengths and play to those. For example, suppose you have a department whose strength is customer service and not necessarily customer service technology.
In that case, you could empower them by getting custom software catered to their technical skill level. You could even offer tutorial sessions and seminars to help them improve their existing skills, allowing them to use their strengths while building less-developed skills.
Continuously invest in your talent pool, and watch your business grow. Talent retention, engagement, and interest are crucial to keeping your operations efficient and evolving.