Every organization wants to succeed and create a better business environment for their employees. To accomplish this, companies must utilize their resources to attract and retain top talent. In recent years, many industries have been plagued with high turnover rates and the costs associated with hiring their replacements. By increasing retention rates within your workforce, you can not only reduce costs, but improve consistency and efficiencies organization wide.
With the technological revolution taking place in many Human Resources departments, it is essential for organizations to have access to advanced talent management software with vast amounts of data that can help drill down to the root of the problems. One of the greatest challenges today is retaining millennials, research conducted by Gen Y consulting firm Millennial Branding has found that about a third of companies have lost 15 percent of more of their millennial workforce in the last year. The millennial workforce is comprised on 34 percent of the current environment and by 2025 will encompass nearly 75 percent. This makes losing 15 percent of the millennial segment a year a substantial threat that requires immediate attention. Many solutions that helped improve Gen Y employee retention can also show positive results in all employee age brackets.
Increased flexibility is one of the first steps organizations take in hopes of improving their employee retention rate. The 2014 Global Human Capital Trend stated “Among generational bands from Boomers to millennials, a top response was to provide flexible working conditions and better work-life integration.” Many trends are changing in the workplace including the attitudes of employees, no longer are benefits and pay the most important decision factors. People wish to feel good about what they do in the sense that it is rewarding internally and externally. Ray Sisodia and John Mackeys book Conscious Capitalism strongly argues that companies with increased social responsibility see an improvement in both engagement and retention. Top talent is more inclined to work for globally responsible companies and a corporate investment in community initiatives can easily be recovered with increased productivity and lower turnover.
There are several key aspects to consider when analyzing how to improve retention;
- What matters to your employees: It is important to have open communication and regularly asses the employee experience.
- Meaningful work: One of the most important aspects of employee retention is the work itself, employees who feel that purpose and value comes from their work are more likely to stay.
- Development: Organization that allow for all employees to take part in development have greater retention. Showing the importance you put on your staff and their future work.
- Diversity and Inclusion: Both employees and customers want to be respected, by constantly working to improve both diversity and inclusion promotes a more positive environment.
- Develop a corporate brand: Develop a company brand that includes both your product and your corporate environment. By structuring work and development to be run parallel to the company’s mission and brand.
- Constantly monitor retention: Consistently track retention with exit surveys and interviews to understand how the company can improve.
There is no single key that can resolve all retention issues. Organizations must create a balance of value, responsibility, flexibility, and community. A constant battle is taking place and the end is a difficult mark to find. Is your company ready for the challenges and prosperity that may lay ahead?