Retention Is the Key to Longevity
Since the Great Resignation, the focus of company leadership has been hiring, hiring, hiring. But in 2023, the focus will shift more toward employee retention. While recruiting is vital to a company, the key to longevity and profitability is retention.
Here are some areas to consider when looking to promote employee retention strategies.
Not to be confused with job satisfaction, Gallup defines employee engagement as the involvement and enthusiasm of employees in their work and workplace. Workers want to feel “connected” to their leaders and peers. In addition, people need to feel that their work has an impact on company objectives and that there is genuine appreciation for their efforts.
Career advancement is a major factor in a worker’s decision to stay with or leave an organization. Companies that invest in the development of their employees will retain them more readily. Creating a culture where your leaders are conscious of their team members’ desires for development can open real dialogue about where additional training could be offered, mentorship programs, and action plans for career growth.
IMPROVE THE SKILLS OF YOUR LEADERS
The world of work has changed drastically since 2020. Most companies were forced to operate with a distributed workforce, and to lead effectively in that type of work environment requires a different set of skills. In addition, there has been a major shift toward work-life balance and well-being. Before promoting an employee into a leadership role, assess their leadership skills and train them on how to lead today’s workforce. Doing so will provide superior results for retention. Remember the adage, “people don’t leave bad jobs, they leave bad bosses.”
DISTRIBUTED WORKFORCE OPTIONS WHERE APPLICABLE
The world of work moved toward a hybrid or virtual workforce, and it is here to stay. Though companies have been working diligently to return to a pre-covid, legacy model, the workforce has been stubborn to comply. Offering at least a hybrid model will retain those that would otherwise leave your organization and also increase your talent pool for open positions.
COMPENSATION AND BENEFITS
With high inflation and a very competitive talent landscape, it may be time to reconsider compensation plans. While compensation is not the sole driver for people to leave their employer, if they feel underpaid for their contribution it may encourage them to explore opportunities outside your organization. Pay transparency is also an important consideration. According to CareerBuilder research, 82% of employers believe that there should be transparency. The research also showed that Millennials and about 30% of women are more inclined to join a company that offers transparency. With respect to benefits, offering lower healthcare costs and expanding flexibility in accommodating your employee’s needs, such as childcare and family leave, fosters more loyalty.