Retention Matters: Insights and Strategies for Reducing Employee Turnover
Q3 2023
Thought Logic’s quarterly report, Organizational Solutions Insider, offers leaders key takeaways and considerations based on the latest human capital and organizational trends.
Overview
Over the past few years, employee attitudes have shifted around the work they do and the environment in which they do it. This mindset shift encourages employees to seek new employment if their employer does not adapt to the changing landscape or meet their needs. As the economic landscape continues to evolve, companies are finding that employee turnover and talent acquisition are becoming more difficult and expensive.
Today, employers are adjusting their retention strategies to mitigate employee turnover. Organizations that prioritize benefit differentiation, employee well-being, and technology advancement experience improved employee retention and attraction.
Key Takeways
- While the job market is cooling, it is still a favorable environment for jobseekers when searching for a new job.
- Businesses are challenged with retention and attraction of top talent. If companies struggle to engage their workforce, it can impact their ability to service customers, run critical operations, and ultimately grow their bottom line.
- Employers are currently reevaluating all aspects of work and the working environment that affect the workforce. Thought Logic highlights three focus areas for employers to consider to retain and attract top talent:
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- Differentiate the company’s benefits
- Prioritize wellness programs
- Invest in technology
Here’s the Situation.
Turnover Is:
HURTING PRODUCTIVITY
Source: Forbes
INSIGHTS
- Workers have been in high demand with a tight job market, and businesses are challenged to keep and find right talent in a timely manner.
- High attrition rates can have a significant impact on employer costs – increased recruitment, onboarding, and training costs.
- Retaining talented employees is crucial for maintaining productivity and business continuity. Attrition often disrupts team dynamics, decreases morale, increases delays, and reduces institutional knowledge.
- Attrition can impact an organization’s employer brand. High attrition rates can create a negative perception among recruiting candidates, increasing challenges to attract top talent. On the other hand, positive employee experiences, high retention rates, and engaged employees can enhance an organization’s reputation as an employer of choice which leads to larger talent pools, higher-quality applicants, and a competitive edge in the job market.
What can employers do? Increase Benefits
Source: Wellable
INSIGHTS
- Employers are re-evaluating and expanding their benefit offerings to align with the evolving needs and challenges faced by employees.
- When employers reevaluate and invest in new benefits, they demonstrate dedication to employees’ overall health, as well as the employees’ futures.
- A solid employee benefits package can help to attract and retain talent. Benefits can also help employers differentiate their brand from competitors.
RECOMMENDED ACTIONS
- Proactively monitor and address attrition, retention, and employee engagement to ensure a positive employer-employee relationship
- Reevaluate existing benefits to better address employee needs, pending financial plausibility
- Market differentiated benefits to current and potential employees
What Specific Actions Can Employers Take?
Today’s workforce is diverse with varying work preferences and individual needs. Recognizing that company investments are not limitless, employers should focus on benefit preferences that attract and retain critical talent groups while also addressing broader needs of the workforce. While some benefits require significant investment (e.g., salary and health insurance/programs), there are also creative ways to provide benefits that require minimal investments, including nap or lounge rooms, bringing pets to work, selecting which holidays to observe, coworker recognition opportunities, guest speakers, etc.
Provided below are considerations for strengthening a company’s organizational benefits. Once benefit preferences are identified, a cost-benefits analysis should be conducted to understand the benefits combination that maximizes employee value while remaining financially viable.
1. Differentiate Your Company’s Benefits
Source: Grant Thornton
INSIGHTS
- Differentiating company benefits is an important way to gain a competitive edge in attracting employees, but not all companies differentiate well. Ask:
- How is the company calling attention to and marketing its benefits?
- What benefits are competitors offering? How do your company benefits compare?
- While better benefits are increasingly expected, not all employees prioritize benefits equally. Preferences may vary based on factors like age, personal circumstances, industry, and location. Therefore, it is crucial for employers to understand specific preferences of their workforce to align packages and programs to maximize value to employees.
RECOMMENDED ACTIONS
- Define how your company wants to be perceived by employees and how your company is/can be unique
- Determine what benefits are important to your employees and at a minimum meet (preferably exceed) those expectations, pending financial viability
- Clearly communicate benefits and rewards that reflect your company’s distinctiveness
- Empowering managers “freedom within a framework” to to create flexibility to meet specific employee needs or preferences
2. Prioritize Wellness Programs
Source: Wellable
INSIGHTS
- The pandemic has underscored the importance of prioritizing employee well-being. Employers have recognized the need to provide benefits that support physical, mental, and emotional health.
- Employers have become more proactive, recognizing that a healthy workforce is vital for productivity and engagement.
- Previous perks, like on-site fitness centers and health activities, will not be as utilized or as valued with the new emphasis on remote and hybrid work.
RECOMMENDED ACTIONS
- Evaluate the company’s current wellness offerings
- Survey employees to determine what wellness benefits provide the greatest value
- Refine wellness benefits, taking financial investment into account, and develop a marketing campaign to share with employees
3. Invest in a Tech-Enabled Workplace
Source: Digital in the Round
INSIGHTS
- Well-integrated technology solutions such as communication tools, collaboration platforms and cloud technology can boost company culture and support greater employee satisfaction — which leads to greater retention.
- While technology can contribute to reducing turnover, it is important to remember that a holistic approach is essential. Technology should be integrated strategically and also supported by leadership, effective communication, and a positive work culture.
- Understanding employee needs and work requirements are crucial for tailoring technology solutions.
RECOMMENDED ACTIONS
- Survey employees to understand their technology needs and communicate how the company will (or will not) address them
- Carefully think through purpose and usage of communication and collaboration tools to avoid burnout, i.e. too many channels to follow
- Consider investing in a learning management system (LMS)
- Ensure that investments made align with the company culture desired
Links to related articles and more
9 Steps to Design a Solid Employee Benefits Strategy
In this article, learn how to develop a customized employee benefits strategy. Understanding your employees’ needs and designing a crafted solution is one of the most critical aspects of successful HR management.
5 Ways to Differentiate Your Organization With Strategic Employee Benefits
This article highlights five steps HR leaders can take to transform employee benefits from a nice-to-have into a human capital management strategic advantage.
2023 Employee Wellness Industry Trends Report
This report shares valuable insights into how organizations invest in their employees to prepare for and adapt to an ever-changing business landscape.
Future-Proofing Your Organization: Navigating the Shifting Landscape of Human Resources
This article delves into the latest research and insights to provide a strategic perspective on key HR challenges and offer actionable recommendations to enhance your organization’s success around talent acquisition, employee engagement, and workforce development.
Why is Technology Important in the Workplace?
This article reviews research that outlines why is having the right workplace technology so important and what the tangible benefits are of introducing intelligent software solutions into your workflows.
About People + Change
Thought Logic’s People + Change smartSolution helps businesses reimagining the power of people to excel in an environment of continuous change.
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