Transform to Retain: Addressing today’s talent challenges through a comprehensive approach to career planning, performance management, compensation, and skill development
Over the last year, the Great Resignation has left companies reeling from talent challenges, with 4.3 million employees leaving their jobs in January of 2022. The talent market has become wildly competitive, so how do organizations of today attract, engage, and retain valuable employees?
Employers are all too familiar with the costs of replacing an employee. Along with the cost of recruiting and training new employees, high workforce turnover also harms workforce morale, and the customer experience. On the other hand, more and more employers are realizing that an engaged, satisfied workforce presents a significant competitive advantage. Engaged and committed employers are not only less likely to leave, but they also perform better, are more satisfied in their roles, and are more productive.
The organizations currently succeeding in this area have a key common trait: an integrated, transparent approach to career planning, performance management, compensation, and skill development.
Why are employees leaving?
A new Pew Research Center survey identified the top reasons why Americans quit their jobs last year:
- Low pay (63%)
- No opportunities for advancement (63%)
- Feeling disrespected at work (57%)
It’s interesting to note that a lack of opportunities for advancement is weighted equally with low pay. Although remuneration is important, it’s only one aspect of the employee experience. Those who quit their jobs in 2021 and are now employed elsewhere have seen some improvement in their current work situation compared with their previous jobs:
- Earning more money (56%)
- More opportunities for advancement (53%)
- An easier time balancing work and family responsibilities (53%)
- More flexibility with regards to work hours (50%)
What these numbers show us is that employees are not assets or resources—they are human beings. They want more than a high salary. They want a company culture that supports them, and a career with purpose and prospects. That’s why the ideal employee experience focuses on the whole individual: mental and physical health, along with aspirations for professional growth and development.
A recent Gallup study found that more than half of workers in the U.S want to upgrade their skills, and 65% of workers refer to employer-provided upskilling when evaluating a potential new job. At all levels of the organization, training and employee engagement go hand in hand, and engagement is closely linked to retention.
Business transformation initiatives simply can’t afford to fail
In today’s competitive talent landscape, business transformation needs to take a people-centered approach to create sustainable change, which requires buy-in from employees at all levels. Some are even referring to this time in our history as the People Revolution. Business leaders need to adopt changes that avoid employee burnout, improve employee engagement, and minimize turnover. Failure to do so could be disastrous in organizations dealing with a toxic work culture.
It’s no small task for leaders to engage their teams and gain employee buy-in to the transformation effort. Further, organizations undergoing a transformation will frequently introduce new leader attributes or behaviors, some of which require significant adjustments to past behaviors. Leaders require a clear understanding of the things they’re accountable for, as well as the skills they need to develop in themselves and their teams. Training can offer strong support and help leaders feel confident in this process, and also help to cultivate a learning culture where employees at all levels have a growth-oriented mindset.
Create growth opportunities at all levels of the organization
As studies (and our own experience) suggest, most employees want to grow and evolve along their career paths, opening opportunities to both earn more and expand their skill sets. Blueline’s training and communication tools can facilitate your organization’s transformation to an integrated, transparent approach to career planning, performance management, compensation, and skill development. We can help your organization to become a preferred employer by investing in your people, making growth part of the culture, and enhancing employee engagement.
Contact us to schedule a consultation to learn more about our learning solutions, and ways to overcome talent challanges.