There is an intense “war for talent” being fought globally which is the result of a decreasing supply of talent worldwide coupled with increasing changes in technology and global market trends. Korn Ferry estimate that the global talent shortage will have an $8tn financial impact on businesses by 2030, (Korn Ferry Institute, 2017). So whether your organisation is a large enterprise or a small / medium business, retaining talent will continue to be a critical topic for leaders and employees alike.
Losing talent from the organisation can have significant financial impact for businesses, including direct costs like hiring and training, and indirect costs such as the loss of specialised skills, organisational knowledge, and the erosion of employee networks and teams. All of these make it difficult for businesses to grow and maintain competitive advantage in marketplaces which are already fraught with challenges. Economic analysts estimate Irish businesses could face an estimated €1.2bn of costs related to staff turnover and the financial impact for Irish SMEs could be up €538m, (Daly, 2021).
We will create a series of blogs supported with information webinars on this topic over the coming weeks and months so make sure to watch this space.
What is Talent Retention and Whats Driving it?
This is the first in a series of blog posts which will explore Talent Retention. As organisations are faced with the rapidly changing world of work, the war on talent has become increasingly prominent, and one key aspect for leaders locally and globally is talent retention. In this week’s blog we explore what talent retention is and what’s driving it. We’ll take a look at what motivates employees to leave an organisation, and identify some of the newer motivations that have come to the fore due to the Covid-19 pandemic, which has changed the work landscape for many organisations and employees. There are direct and indirect cost implications of losing talent from the organisation, which analysts have estimated could be in the region of €538m for Irish SMEs, and another staggering statistic from two Irish studies which highlight over 40% of the Irish workers surveyed, plan to leave their current employer in the next twelve months.
Strategies to Retain Talent
Core to talent retention is leadership. Having regular good quality interactions between leaders and their employees better positions them to know how each employee feels about their work, and their sentiment towards the organisation. Building on the previous blog post which identified key reasons employees leave organisations, we explore a set of strategies leaders can implement to address these retention issues. There are six specific areas covered in this blog post including:
- Value your employees
- Mental health
- Manager-employee relationships
- Corporate culture
- Purpose and meaning
Key to each of these areas is the underpinning role of a good productive manager-employee relationship. Feeling included, valued and part of the organisation is key for every employee, regardless of role or rank. It is important for leaders to support their employees, and in turn that you feel supported by them. The benefits of doing so, help create a culture of wellbeing and an organisation employees want to stay with.
Learning and Development – Talent Retention
Learning and Development (L&D) is key to engaging and retaining talent, by making employees feel valued and enabling their career growth. Today’s workforce has come to expect training and development as a core employment benefit. Studies have shown that this is a key requirement for millennials, but also has been highlighted by employees over fifty as very or extremely important. So today’s business leaders need to be cognisant of this, as they look to navigate the realities of the post pandemic years, enabling employees to feel valued and optimistic about the future. Employees who possess the right skills and knowledge are much more productive and have a greater commitment to the organisation they work for.
Employee Retention – The Impact on Employer and Brand Culture
Employer branding and organisational culture are intertwined and play a significant role in engaging and retaining talent. Employees want to work for an organisation with a strong ethical brand, and in an organisation with a positive culture. Today’s workforce is discerning when it comes to the organisations they want to work for, so your company culture needs to be enticing and exciting to attract new talent and inspiring for existing employees. It’s all about attracting the best candidates and ensuring they “fit in”. Your company culture refers to “how you do what you do in the workplace”. It includes the formal and informal systems, behaviours and values which creates the overall lived experience of employees and clients.