Retaining talent
If, as many recent reports indicate, employee turnover is set to rise to 50% during the latter stages of 2023 and into 2024, this could be a disaster for many businesses as the cost of replacing staff can be as much as 150% of salary according to experts such as Gallup.
When you add those who are undecided about whether they will look for a new job the figures quoted grow to a staggering 65%!
Retaining top talent is therefore critical for businesses to survive and maintain a competitive advantage.
While compensation and benefits remain among the top reasons for moving on, work life balance (including culture and appreciation) is the number one reason for employees staying in their role, so this should be a high priority for employers, to improve employee retention and attract top talent.
While compensation matters, assuming that the employer is paying a competitive wage, it is not the main factor when it comes to retention. Work life balance and Recognition both rate higher than compensation for retaining top talent. Salaries need to be competitive, but other factors matter more for those looking to stay with their current employer.
With many people still working from home, or operating in a hybrid environment, employers could be forgiven for assuming that work life balance has improved. Unfortunately, this is not the case, as reports highlight that 51% of people currently working from home are worried that their manager doubts their productivity, and does not trust them, and more than 40% of employees are working longer hours to try to negate this concern.
This highlights the importance of implementing a Culture of Appreciation, where positive feedback based on pre-determined behaviours can be given and received in a timely manner and broadcast to all employees.
If you are not looking after your employees brace yourself for an expensive 2023/4 recruiting staff in a market that is likely to be short of many skills and experiences.
The global pandemic has triggered a shift from 1st Stream Change to 2nd Stream Change where people are at the centre and the reason for the change. The Great Resignation is requiring companies to rethink how they engage their people in change and take them with them on the change journey as co change-makers.
People want more from organisational change projects. They expect their work experience and contribution to be augmented by change. This is being called The Great Awakening. At Brownie Points we call this the New World of Work.
Thought leading organisations around the world understand the value of passionate employees and what they bring to their business.
They appreciate the correlation between passionate and engaged employees, and brand value and corporate performance.
Engaged employees are proven to take fewer sick days, stay longer, are more productive and deliver greater customer/guest experience. When people feel valued, appreciated, respected and included at work they are more emotionally committed to the vision of the business.
Implementing a strategy to embrace a Culture of appreciation and positive feedback to improve engagement will aid talent retention and attraction. This is important for a business looking become an employer of choice, and to compete in the war for talent.
Take a moment to complete the form below to see what staff turnover is costing your business to replace your lost talent. It might surprise you.
https://browniepoints.com.au/employee-retention-calculator/
The time to act is now. Build your Culture of Appreciation to protect your investment in your people, because if you don’t value your staff your competitors will.
Tony Delaney, CEO Brownie Points
