January was Employee Retention month on the 17th Floor Community. During this month, we saw how companies are putting all their attention into retaining their employees to cope with the high turnover rates resulting from the Great Resignation.
Turnovers are more than just a headache for managers who need to cover job positions; they are expensive. According to recent research, by 2030, the US is expected to lose $430 billion due to low talent retention. While this trend is not surprising, these numbers are shocking indeed.
If companies want to avoid losing talent and money in 2023, they will need to make Employee Retention their number one priority. According to the latest trends, these are the top four demands employees expect in return for staying in their jobs.
1. Company Culture
Company culture is the combination of the organization's values, beliefs and behaviours that shape its identity. As Dave Owen Code, co-CEO of Avanti, put it in one of the 17th Floor's webinars, company culture is the living, work-in-progress, unspoken behaviours in an organization. This dictates the way the company acts, operates, and what it values.
Employees will look for companies, or stay with current ones, if they find in them the same values and aspirations that they have. This means they will place a lot of importance on how they feel in that work environment, finding comfort and trust working with managers and peers, and cross-cutting company values such as pay equity, diversity, equity and inclusion.
2. Total Rewards
Total Rewards are the ensemble of benefits, compensation and rewards received by an employee. Many companies have a generic benefits plan that doesn't suit their company or workers. This translates into a loss of money and resources because employees don't make use of them.
Each worker is unique and has different needs, so a tailored Total Rewards plan will add value to what the employee receives in return for their work. This will positively affect employee loyalty and increase the retention rate. Of course, every company has different resources, so each HR department must find the best way to create a successful plan with the available means. Learn how to create a 4-step plan for a successful Total Rewards policy.
3. Flex Schedules
With the pandemic, people discovered the benefits of flexible schedules and workspaces. While most companies that had offices prior to the pandemic are not offering 100% remote work but rather the possibility of hybrid work, they are allowing flexible schedules.
This means that employees can start their work at home in the morning and continue at the office in the afternoon or vice versa. Tendencies show more and more that the 9 to 5 job is transforming into more flexible working hours where each worker manages their time based on their own work-life balance. Companies that offer flex schedules will see increases in employee retention.
4. Career Growth Opportunities
Every employee wants to work at a company that shares the same values that he or she has, that offers a great Total Rewards program and flexible schedules. But that’s not it. Apart from a great culture and benefits, every person will want to feel challenged and motivated with the job they are doing and with their role within the company.
Offering specialized training for upskilling your employees so they can grow their careers is paramount for employee loyalty and retention. Giving them a chance to update and develop their expertise, whether by direct mentorship with the company's management or with external training, will not only uplevel your workforce but the whole organization.
What other element do you see as pivotal for Employee Retention this year? Tell us in the comments section below.
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