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Today’s labor market is fast becoming a difficult one to navigate for companies who look to retain the best talent. Retention numbers are usually the top priority of any top-tier HR manager, but it is fast becoming a real challenge for them. Companies need help to keep talent in their midst as they compete for top talent. It is also due to top talent wanting higher compensation for their services and better career development prospects.
Finding top talent and then retaining it has multifaceted challenges, which we shall look at one by one below:
1. Fewer Job Openings:
Employees these days feel that with fewer job openings across the corner, they need to push for better opportunities. Going for better opportunities means employees always seek new and better ways to advance in their careers, whether in terms of growth or salaries. Meanwhile, job openings are scarce, and the hunt for top talent becomes immense as employers fail to retain them with traditional tactics. With higher wages offered elsewhere, employees tend to switch companies, thus making it harder for employers to keep their top talent.
2. Career Advancement:
The onus on employees to keep their employees motivated while they’re working for them includes giving the best career trajectories. If employees aren’t motivated by career growth and development opportunities, they’ll want to switch to a place where they feel challenged. Employees think they’ll have more career development prospects at a place with more challenges and opportunities to grow professionally. Employees also feel valued when they’re rewarded for their excellent work. For instance, when talking about the real estate sector, companies could adopt newer ideas for awards for real estate agents to reward their employees, which may contribute toward increasing retention.
3. Work-Life Balance:
Another important aspect of employee management is the work-life balance afforded to them. Gone are the days when your loyalty to the company depended on you sitting late and working even on weekends. Work-life balance has become an important part of the discussion around employee retention, as employees want a quality of life suitable to their needs. Companies that do not prioritize work-life balance may find it challenging to retain talent, especially when employees are actively looking for better work-life integration.
4. Company Culture/Employee Engagement:
A company fostering a positive working environment is where employees feel valued and can continue working. An unpleasant workplace environment can lead to much stress, translating into a non-positive atmosphere. Employees accumulate so much stress they cannot function properly, even when they’re not at work. A healthy work environment, along with better employee engagement, leads to better retention of the employees.
5. Flexible Work Arrangements:
As we reel from the effects of the COVID-19 pandemic, many talking points have been discussed in the past days. One such point is allowing remote work for employees to perform their work-related duties. The pandemic taught us there’s no harm in companies being flexible and allowing employees to work from home. It led to more flexibility for the employees as they could give more time to their home and family. Nowadays, companies with better flexibility and remote work opportunities are being preferred by employees.
6. Employee Benefits:
Companies offering their employees competitive market-based salaries and incentives such as healthcare and a retirement plan stand a greater chance of retaining them. Perks such as free transportation, medical insurance, and on-the-job training can motivate an employee in a company’s favor. Employees who are satisfied with the quantum of work they do and their compensation will have higher job satisfaction. Moreover, employees feel valued if companies solicit employees’ feedback and incorporate it into their company policy.
7. Talent Development:
Lastly, it is a huge testament to a company’s ability to retain its employees when it pours much thought towards employee training needs. Skill development and training can boost employee morale and loyalty as they feel the company is invested in them and must give back their best. Employees are more likely to stay with an employer that invests in their professional growth.
Companies should consider the above factors to address the challenge of retaining quality talent in a tightening labor market. Companies and their HR departments must examine why employees leave and what makes them loyal to a particular company. Retention strategies must be based on long-term solutions rather than offering the employees a reactive salary raise to counter them leaving.Efforts must be made to make company strategy align with employee retention as a priority. Giving your employees their due share in compensation and perks is a must to retain top-quality talent. Conducting employee training, ensuring that the workplace environment is healthy, and allowing employees the flexibility to work from home are some things that make a company retain its top talent.
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