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If your organization is among those struggling to find and attract the candidates you need to be successful, it's time to make employee retention a top priority. The biggest IP in any business is its staff. Employers must plan a way forward and reaffirm a sense of stability and purpose.
In an era of continued uncertainty, staff retention has become one of the most business-critical issues of our time. Yet, in many ways, it has never been more difficult. What a business needs to offer workers to keep them happy has morphed considerably over the past few years. No longer is it simply a case of paying the biggest salary. Rather, it is important today that businesses do all they can to reduce stress, avoid burnout and adhere to workers’ increased desire for flexibility. Only then can they maintain a workforce that will remain loyal and engaged.
Unfortunately, the percentage of employees who report being satisfied with their place of work continues to drop. Research shows that only 16% of employees are currently fully engaged. This means that over five-in-six workers are just going through the motions instead of contributing all they can to their organizations.
This is a problem. Non-engaged workers typically have high levels of absenteeism, are less productive, and are much more likely to commit errors on the job. Plus, they are far more likely to leave. So, what can businesses and senior HR leaders do to foster enjoyment and loyalty?
Worker expectations have never been higher. Following the pandemic, obtaining a healthier work-life balance has become the panacea for many. So much so, that many are willing to walk away if this balance is not being met.
Much has been written about the great resignation that was seen globally over the past few years. In just one month in 2021, 4.5 million Americans quit their jobs. In the much smaller UK job market, the number of open roles surpassed 1 million for the first time. It is a trend that will not go away. Our latest People at Work survey showed that almost three-in-ten (29%) workers were actively trying to change their job and/or move into another industry.
Much of this change is driven by a desire for greater flexibility over when and where they work. Our survey showed that 40% of workers would take a pay cut if it allowed them to have total flexibility over when they work. Further, the same number would be willing to take a pay cut if it would guarantee flexibility over where they could work. In addition, 60% of workers would like their employers to offer more flexibility when they work while keeping the same number of hours. For example, to transition from a traditional 40-hour five-day working week towards four working days of 10 hours each.
It is time for businesses to get closer to their staff. After all, they can’t control what they can’t see. Ensure HR teams have access to better data. Ask staff the right questions. These are the foundations of getting a retention strategy right. To properly understand retention requires organizations to analyze and understand both turnover – who is leaving and why – and tenure – who is staying and why. Having accurate data and a comprehensive picture of what is happening in the market, the organization, and with employees should be the first step to any effective retention strategy.
Businesses need to make sure they ask the right questions about the entire human capital management life cycle. And ask them regularly. Only by asking them in a systematic way, can businesses organize, analyze, and see the whole story of their employee retention practices.
Retention is a universal concern for high-performing organizations. To be successful, many businesses need to reconsider how they attract and retain top talent. Many short-term challenges in terms of flexibility and remote working that seemed temporary at the start of the pandemic have since become deep-rooted within society. Don’t ignore the importance of payroll though. Payment accuracy and promptness continue to resonate strongly at a time when there is a widespread cost-of-loving crisis. It is imperative to avoid issues and delays in payroll at all costs.
At a time of extraordinary economic, professional, and personal disruption, workers have largely stepped up to the mark. Yet, many remain restless. Even before the great resignation, it was important that organizations did all they could to retain their most talented individuals and teams. But it has come into sharper focus over the past couple of years. Using robust analytic tools can help to identify the gaps between perception and reality. This includes for compensation, training, career prospects, and more.
If your organization is among those struggling to find and attract the candidates you need to be successful, it’s time to make employee retention a top priority. The biggest IP in any business is its staff. Employers must plan a way forward and reaffirm a sense of stability and purpose.
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Jeff Phipps, Senior Vice President – Global View, ADP