Employee Retention: Fixing the Revolving Door of Talent
Are you watching the revolving door of talent spinning in your organization? Here are the top tips to understand why the door keeps turning and how you can slow it down and increase employee retention.
Talent is on the move
As the Great Resignation ramps up with no obvious end in sight, organizations are facing an extremely competitive talent market. Whilst some companies will compete for talent by increasing compensation and/ or moving to hybrid-flexible working, both approaches could be short-sighted. More money and more flexibility will attract talent into an organization, but it will also be the driver of further resignations as we create a revolving door of talent. In this context, top talent will continue to be on the move, looking for more money, more flexibility, more career development, more leisure time, and without the geographical barriers that have previously limited the sphere of opportunities. Hence, employee retention is another matter that organizations need to tackle, and this is more difficult than mere talent attraction.
Why are people heading for the exit?
The obvious reaction to people leaving is to competitively recruit more people to fill the gaps. But this approach leaves organizations in the middle of the revolving door problem. As one enters, another leaves and so the door continues revolving. And it becomes more and more expensive to open the door!
But what is happening behind the door? Why are people heading for the exit? Many employees perceive there to be more development opportunities outside their organization than inside. In fact, 65% of employees say that there are more career and development opportunities in new organizations than in their current ones. Is that the reality or the perception? Either way, it is a problem that is making people head out the door. And perhaps it is inevitable that people will look externally for career development, but research shows that almost two-thirds of employees want to pursue new internal opportunities.
65% of employees say that there are more career and development opportunities in new organizations than in their current ones.
How to increase employee retention: slowing down the revolving door
Changing perceptions and demonstrating that your organization is the best place for talent to grow and develop is critical to retaining talent. Developing the talent you already have is only going to lead to more engagement, increased productivity, and greater employee retention. Greater employee retention slows down the people who want to head out the door, as well as increases the desire for new people to enter.
So how can you understand the talent you have in the business, and how it can best meet today’s needs and tomorrow’s goals? Start by slowing down the revolving door of talent by:
Research shows that almost two-thirds of employees want to pursue new internal opportunities.
Organizations can slow down the revolving door of talent by stepping back from the door altogether. According to Gartner, 91% of HR Leaders have immediate concerns about employee turnover. Rather than reacting with ‘How do we replace the talent that’s leaving?’ try solving through ‘How do we nurture the talent we have?’ approaches, to achieve a long-term strategy for talent management and business success. Employee retention can be achieved through talent mobility.