Winning the Battle of Talent Retention
The battle for talent retention is on. Research says, globally we face a $8.5 trillion shortage of qualified workers. And one hundred million jobs will be unfulfilled because of a lack of skilled people. The US especially lacks talent for many jobs. Executives must elevate their organization’s focus on two collaborative objectives: finding the best people and keeping them.
Are you tired of the following:
- A revolving door of people coming and going?
- Never having enough people to get the work done—yet you still have lofty goals?
- Not finding quality people that want to work?
- Do you just want to build a better team?
Keep reading and take this information to heart. It is not easy, but the payoff makes a difference in your success as a leader and your team’s performance.
What are the key statistics related to Talent Retention?
These statistics highlight trends and challenges of finding and keeping talent. In addition, they demonstrate the bottom-line impact of higher retention rates. Clearly, organizations must improve, and as they do their bottom-lines grow.
- High turnover rates can be costly for organizations, with estimates suggesting that it can cost up to 2.5 times an employee’s salary to replace them. The average annual employee turnover rate across industries is typically around 10-15%, but this can vary widely. Know your number and reduce it to save significant dollars.
- A survey by the Work Institute found that the top reasons for employee turnover include career development opportunities (22%), work-life balance (12%), management behavior (11%), and well-being concerns (9%).
- According to a report by FlexJobs, 65% of employees surveyed in 2021 said they are more productive working from home but concerns about career advancement and company culture remain challenges for remote work.
- Gallup’s State of the Global Workplace report indicated that only 15% of employees worldwide are engaged in their jobs, highlighting a significant opportunity for improvement in engagement strategies.
- A study by Deloitte found that 94% of executives and 88% of employees believe a distinct workplace culture is important to business success. Companies with strong cultures are more likely to retain employees.
- The World Economic Forum reported that 54% of employees will require significant reskilling and upskilling due to rapid technological advancements. Organizations may face challenges in retaining talent if they do not invest in employee development.
- According to a survey by Glassdoor, 53% of employees believe that feeling appreciated is their top reason for staying with their current employer.
- LinkedIn’s Workplace Learning Report found that 94% of employees would stay at a company longer if it invested in their career development. Organizational learning and development processes are increasingly crucial.
- Research by McKinsey shows that companies in the top quartile for ethnic and cultural diversity on executive teams are 36% more likely to achieve above-average profitability.
- A survey by Harvard Business Review found that 89% of organizations believe that well-being programs positively impact attracting employees and talent retention.
- 25% of companies track if their hiring process produces quality employees.
- Only 28% of companies see internal candidates as an important source.
- Surprisingly, one-third of companies require they post jobs internally before hiring from the outside.
- Only 48% of companies when surveyed by ERC said they use testing to see if a candidate has the skills or knowledge needed for a job.
Organizations and leadership must wisely consider these issues. They are not going away anytime soon.
What are the Biggest Mistakes Companies Make with Talent Retention?
- Lack of Career Development Opportunities
- Poor Leadership and Management
- Inadequate Compensation and Benefits
- Ignoring Work-Life Balance
- Lack of Recognition and Rewards
- Neglecting Company Culture
- Ignoring Employee Feedback
- Insufficient Onboarding Processes
- Failure to Address Well-Being
- Lack of Flexibility and Adaptability
To avoid these mistakes management needs a new outlook. This means elevating people first through Servant Leadership. Traditional leadership practices are not working. It is time to change. A company’s reputation becomes its biggest recruiter or its worst advertisement.
What are the Ten Best Practices for Improving Talent Retention?
Following up on the issues above, review the best approaches for talent retention as defined below. Every company needs to plan this out in detail as a product design or a marketing campaign. If it is not part of a company’s strategic plan and defined explicitly your efforts will fail.
Invest in Professional Development to Elevate Talent Retention
- Provide opportunities for continuous learning and skill development. This can include training programs, workshops, mentorship, and support for further education. When employees see a clear path for career growth within the organization, they are more likely to stay.
Promote a Positive Work Culture that Energizes Talent Retention
- Foster a workplace culture that values collaboration, open communication, and employee well-being. Employees are more likely to stay in an environment where they feel supported, appreciated, and connected to their colleagues.
Offer Competitive Compensation and Benefits
- Ensure that your organization provides competitive salaries and benefits packages. Regularly review and adjust compensation to reflect industry standards. Additionally, consider non-monetary benefits such as flexible work arrangements, wellness programs, and other perks.
Recognize and Reward Performance
- Implement recognition and reward programs to acknowledge and celebrate employees’ achievements. Recognizing hard work and contributions can boost morale and create a positive work environment. Employees who feel valued are more likely to stay with the company.
Provide Work-Life Balance
- Support a healthy work-life balance by encouraging reasonable working hours, flexible schedules, and time-off policies. Acknowledge the importance of personal time, and avoid a culture that promotes overworking, which can lead to burnout and increased turnover.
- Train and support leaders and managers to be Servant Leaders. Poor leadership is a common reason for employee dissatisfaction. Ensure that managers are skilled in communication, conflict resolution, and fostering a positive team culture.
Create a Clear Career Path for Talent Retention
- Clearly communicate potential career paths and advancement opportunities within the organization. Employees are more likely to stay when they see a future for themselves within the company. Provide guidance on how employees can progress in their careers and take on new responsibilities.
Flexible Work Arrangements
- Embrace flexibility in work arrangements, such as remote work options or flexible scheduling. Providing flexibility demonstrates trust in employees and acknowledges their diverse needs, contributing to improved work-life balance and job satisfaction.
Diversity, Equity, and Inclusion
- Establish policies and procedures for recruiting and hiring that create a diverse workforce.
- Ensure that salaries, promotions, benefits, and career development situations are fairly applied.
- Create opportunities or options for employees to participate in cultural programs, teambuilding activities, and other activities that may elevate their well-being.
Regular Employee Feedback and Surveys
- Actively seek and listen to employee feedback through regular surveys and engagement assessments. Understanding the concerns and needs of employees allows organizations to make informed decisions and address issues before they lead to dissatisfaction and turnover.
- By acting on these approaches leaders and companies can create work environments that attract and retain the best talent. One of our clients led his market in customer service for fifteen straight years. In addition, because he treated people as champions by creating a positive engaging workplace, he had high employee engagement numbers. He did not have to search for talent, his company had a waiting list of people of potential candidates. His employee turnover numbers were three times lower than industry averages.
A company in the business-to-business service industry experienced a significant increase in employee turnover. In addition, they were struggling to find qualified candidates. They asked us for help.
We created a team of their management and ours to assess the situation and create a strategic plan for improvement. After gaining input from the organization and outside resources our plan added two areas to their current approaches.
- Include their line management in the recruiting process by asking them to network. We received input from management in determining what this looked like, so it did not take excessive time. So, instead of a handful of people recruiting they had forty people engaged. We tracked the team’s efforts. They ended up with three times more good candidates for any given job opening.
- Next, we added testing and tracking to the hiring process. We wanted to know the job fit, and how well the management team was doing.
Furthermore, we ramped up the development and training of the management and supervisory teams’ leadership skills. The process was a resounding success. Over a three-year period, they decreased their turnover four times. They were winning the battle of talent retention.
In conclusion, check out these leadership quotes on the value of talent retention.
- “The best leaders are those most interested in surrounding themselves with assistants and associates smarter than they are.” – John C. Maxwell
- “Your number one customers are your people. Look after employees first and then customers last.” – Ian Hutchinson
- “To win in the marketplace, you must first win in the workplace.” – Doug Conant
- “Train people well enough so they can leave, treat them well enough so they don’t want to.” – Richard Branson
- “Take time to appreciate employees and they will reciprocate in a thousand ways.” – Bob Nelson
- “If you take care of your people, your people will take care of your customers, and your business will take care of itself.” – J.W. Marriott
- “Great vision without great people is irrelevant.” – Jim Collins
- “Leadership is not about being in charge. It’s about taking care of those in your charge.” – Simon Sinek
- “A company is stronger if it is bound by love rather than by fear.” – Herb Kelleher
- “People leave managers, not companies.” – Marcus Buckingham
These quotes emphasize the importance of valuing and investing in employees, recognizing that a strong and motivated workforce is essential for organizational success. They highlight the idea that talent retention is not just about retaining employees but also about creating an environment where they thrive and contribute positively to the organization’s growth.
Also, click here for a complimentary resource called– How Does Servant Leadership Work?
Furthermore, the world desperately needs leaders that have empathy and care. Join the revolution in leadership thought and practice that elevates people first through Servant Leadership on LinkedIn: ServantLeadership@RickConlowInternational
Finally, see Rick’s newest book. The 5 Dynamics of Servant Leadership: How to accelerate your career and inspire your team! See his newest self-directed leadership training: 21 Servant Leadership Training Lessons.
CEO/Founder, Rick Conlow International: RCI transforms managers from good to great coaches and trains them to become Servant Leaders. Clients achieve record-breaking performances in sales growth, customer experience improvement, employee engagement and leadership effectiveness. Furthermore, RCI’s online resources coach and train all managers or employees to higher levels of career success.
Note: Research for this post completed with ChatGPT input.