Employee retention: The Biggest Challenge HR Leaders are Facing in 2017
Retaining talent is a prime challenge nowadays. Organizations are exploring ways to re-engineer employee retention.
While talent leaders continue beating the war drums for talent, another challenge is looming large over their way: retaining the talent they have. In 2017, the highest priority, and worry to boot, for business leaders will be retaining talent in a competitive and talent-starved marketplace. Not without any reason, though, as a new research from Future Workplace and Kronos has revealed that a whopping 87% of employers believe that enhancing retention is one of the “critical priorities” for them. The catch here is “critical.”
As the global economy continues its scorching growth, albeit, with a few fragmented slowdowns thrown in, more jobs are being created, positioning employees better to choose their employers. A case in point is a Glassdoor study, which recently revealed that more than half of employees think if they lose their job, they are likely to get a new one according to their present compensation levels as well as experience within the next ‘SIX’ months (yes, you got that right)!
On the other hand, another study of the economic research arm of Glassdoor, titled: ‘Why Do Workers Quit?’ shows that employees who stagnate in their respective jobs for long are more likely to leave their organizations instead of moving for new positions within their organizations. This specifically sounds a clarion call for employers, as, on an average, the estimated costs of employee turnover are well over 21 percent of the annual salary of an employee.
The Latest Workplace Trends to Elevate Employee Retention
2016 withstood organizations giving more attention to enhancing their employee experience by paying a close look at the ongoing interactions with their customers, office environment, peers, and supervisors—all the touch points that influence employees’ satisfaction and behavior at the work. Even charting an unconventional path to enrich their employee experience, organizations such as Cisco, GE, and L'Oréal have appointed senior leaders with the designation like “Director of Employee Experience.”
In 2017 and beyond, this trend will not only stay but will gain momentum and be accompanied by some more. Here are some of these trends that are emerging in recent times.
Boost career mobility: Research shows when employees, mainly the new-gen workforce, feel stagnant at their job role, they immediately put their ‘job-searching cap’ on. Such notion has compelled organizations to boost various career mobility programs for their in-house talent. A study by Future Workplace and Cisco has revealed that such career mobility programs assist in enhancing engagement, teamwork, and productivity, obviously.
Give ample learning opportunities: In a recent study, Udemy has disclosed that about 46% of talent cite inadequate opportunities to hone or learn new skills as the main reason behind their stagnation in the present job and willingness for a change. Learning opportunities can assist companies not only in retention but also in building their next-gen leaders. Taking this axiom on a serious note, over the past few years, a whopping number of organizations have made investments of more than $1,200 per employee in various direct learning expenditures, and this year, such investments will continue too.
Mull over better package: Accept it or not, the rule of thumb is: if you don’t pay your talent fairly, they will ultimately leave—sooner or later. And any perk will not change their mind. ‘Money’ is always the “best way” to keep fueling your employees’ motivation factor, as stated by the 60 Minutes/Vanity Fair poll conducted in December 2016.
Promote flexibility: According to a global study by EY, 74% of employees prefer “the ability to work flexibly.” Flexibility can denote anything right from telecommuting to different kinds of work arrangements to flexible hours. A Future Workplace and Kronos study rues that 46% of organizations have attributed between 20% and 50% of employee churn to the employee burnout issue.
Talent managers will face the brunt of high employee turnover in the years to come if they don’t address the issue on a war footing. Churning out innovative ideas to elevate employee experience is apparently the most pertinent thing to do for now. And as for the rest, the time will show the way—as it always does!