What Every CXO Needs to Know About Retaining Talent
The Job Openings and Labor Turnover Survey (JOLTS) found that over 4 million employees quit their job per month in the latter half of 2021. Meanwhile, according to Microsoft's 2021 Work Trend Index, 41% of employees are considering leaving their current employer. As the war for talent rages on, the entire C-Suite needs to prioritize keeping their workforce happy and engaged.
Employee Retention Strategies
It Needs To Be About More Than Just Money
COVID-19 led many employees to reevaluate their priorities. While it’s true that some searched for higher pay, others left for new roles or companies with similar values, or a work environment that better aligned with their lifestyle. An employee’s feelings toward work are dependent on a number of factors. Salary is part of the equation, but a culture of care and belonging are also very important. An employee experience that prioritizes flexibility, mental health, caregiver support, and financial wellness, helps employees live a balanced life and achieve their goals.
Build a Sense of Purpose
Fundamentally speaking, employee retention starts with finding the right people—individuals whose outlook and values align with the company’s mission. Shared values make it more likely that an employee will feel invested in the company. Mission-driven workers are 54 percent more likely to stay for five years at a company and 30 percent more likely to grow into high performers than those who view their paycheck as a primary motivator. Reinforce this purpose regularly by making a clear connection between how your employees’ work directly benefits the larger goal.
Balance Feedback & Appreciation
Most leaders provide their employees with feedback to correct mistakes and encourage them to improve. However, employers need to balance feedback with appreciation. Appreciate employees’ hard work and contributions as much as you notice opportunities for improvement. Acknowledge and reward achievements and milestones, celebrate birthdays, give bonuses when employees surpass goals, offer opportunities for career progression, and provide a competitive and holistic employee benefits package. All of this will help build a strong emotional connection with your workforce.
Prioritize Growth & Development
If you don't invest in employee growth and development, employees will naturally seek challenges and title bumps elsewhere. To keep top talent, provide plenty of opportunities for growth, encourage training and education, offer stretch assignments, and build a mentor and/or coaching program. This strategy is not only beneficial for reducing employee turnover, but also for advancing the company’s innovation and performance.
Engage Your Employees
Whether employees are working remotely or in the office, keeping employees engaged is a challenge that has direct impacts on employee satisfaction, productivity, and retention. Always listen to how your employees are feeling about their job and work environment. Conduct pulse surveys regularly and make adjustments to your benefits, policies, and programs accordingly. Listening to employees’ concerns, asking for their input or ideas, and fostering teamwork helps maintain a positive attitude towards the company.
As the great resignation looms, executives are grappling with how to meet targets with reduced staff and a dwindling labor pool. It’s critical for the entire C-Suite to understand the reasons why good employees leave and to create a culture and work environment where employees can thrive.