Amid the ongoing workplace churn wrought by the pandemic and Great Resignation, talent retention is perhaps more important than ever to organizations that want to sustain success and build prosperous futures. <\/p>\n\n\n\n
Yet, as workers\u2019 priorities evolve, retaining top-performing talent isn\u2019t as simple as offering greater compensation. While competitive pay remains crucial to attracting and retaining elite workers, cultural factors have gained ground in recent years. <\/p>\n\n\n\n
According to Procom\u2019s most recent Voice of Talent report<\/a>, 68% of workers identified maximum compensation as the most influential factor in accepting a job or \u2014 in the case of contingent workers and contractors \u2014 an assignment. Hot on the heels of pay, however, were collaborative\/supportive work environments, minimal commute, meaningful work, and schedule flexibility. <\/p>\n\n\n\n As workplace turnover<\/a> is forecast to remain high in 2023, according to a recent Harvard Business Review analysis, retaining top performers requires an intentional strategy and ongoing effort. Following are a few fundamental reasons why organizations should prioritize retention in the new year if they\u2019re not doing so already.\u00a0\u00a0<\/p>\n\n\n\n Recruiting new workers is time-consuming and costly. Recent data from the Society for Human Resource Management (SHRM) pegged the hard costs of recruiting<\/a> at about $4,700 (USD) per hire. This figure does not account for soft costs, such as the time investment of internal hiring managers and other departmental leaders or onboarding and training processes for new hires. <\/p>\n\n\n\n Top performer turnover<\/b><\/p>\n\n\n\n When high-performing talent leaves an organization, they take valuable institutional knowledge and other intangibles with them. Losing elite talent can equate to a loss of future leadership and necessitate grooming existing personnel or new hires to fill the void. <\/p>\n\n\n\n Top performers are often workplace \u201cglue\u201d who elevate the performances of their team members and contribute to the retention of other talent. When high-performing talent departs, organizations may face diminished productivity, tarnished workplace culture, and holes in their succession plans.\u00a0<\/p>\n\n\n\n In today\u2019s labor climate, where the demand for skilled employees exceeds the supply, the turnover of top workers makes it difficult to attract and retain other qualified talent. Retaining an organization\u2019s best workers builds stability and institutional knowledge, and it fuels the retention of other skilled workers.\u00a0\u00a0<\/p>\n\n\n\n The benefits of employee retention<\/a> to an organization\u2019s current workforce include team cohesion, reliable productivity, and ongoing skills development. High retention rates also appeal to talented job prospects because they demonstrate steadiness and a positive culture. <\/p>\n\n\n\n While fair pay remains critical to workers, issues related to culture \u2014 not compensation \u2014 are the top drivers of turnover. Procom\u2019s Voice of Talent survey discovered that a toxic or disrespectful work environment was the leading trigger for talent flight. <\/p>\n\n\n\n While workplace culture is difficult to define and deeply personal, there are cultural aspects that speak widely to contemporary talent.\u00a0\u00a0<\/p>\n\n\n\n A collaborative\/supportive work environment ranked second to compensation among factors influencing talents\u2019 acceptance of jobs in Procom\u2019s Voice of Talent survey. Whether contingent workers or full-time employees, talent wants to be treated with respect, given the opportunity for input and have accessible, supportive leadership capable of constructive insights and clear direction.\u00a0<\/p>\n \u00a0<\/p>\n\n<\/p>\n \n\n\n<\/p>\n While the terms may seem contradictory, autonomy within a team environment is also essential. Workers desire collaborative atmospheres in which they\u2019re trusted to achieve their goals without micromanagement.\u00a0<\/p>\n \n\n\n<\/p>\n \n\n\n<\/p>\n \n\n\n<\/p>\n \n\n\n<\/p>\n Like workplace culture, the idea of \u201cmeaningful work<\/a>\u201d varies by individual. In broad strokes, meaningful work is employment that connects with a person\u2019s values or otherwise engages their skills and interests; it\u2019s work that talent perceives as fulfilling and significant.\u00a0<\/p>\n \n\n\n<\/p>\n \n\n\n<\/p>\n This meaning may be inherent in workers\u2019 job duties or come from the culture at large. For example, many employees find merit in working for organizations that:\u00a0\u00a0<\/p>\n \n\n\n\n\n\n<\/p>\n \n\n<\/p>\n \n\n<\/p>\n \n\n<\/p>\n \n\n\n\n<\/p>\n \n\n<\/p>\n \n\n<\/p>\n \n\n<\/p>\n \n\n<\/p>\n \n\n<\/p>\n \n\n\n\n<\/p>\n \n\n\n\n<\/p>\n The importance of job flexibility and work-life balance to talent were trending upward before the pandemic, but they have since emerged as vital. Considerations related to commute, schedule flexibility, and hybrid and remote work<\/a> were among the top 10 factors ranked as extremely important to job seekers in Procom\u2019s Voice of Talent survey.\u00a0<\/p>\n \n\n\n\n<\/p>\n Schedule flexibility and off-site work help balance the work-life scale. Another crucial component of work-life equity, according to the Procom survey, is the availability of health benefits and other wellness resources.\u00a0<\/p>\n \n\n\n\n<\/p>\n \n\n\n\n<\/p>\n Talent retention is a constant endeavor that relies on commitment and adaptability.\u00a0<\/p>\n \n\n\n\n<\/p>\n If there is such a thing as a \u201cbest\u201d workplace culture, it\u2019s the one that high-performing talent doesn\u2019t want to leave. That type of culture must be intentionally cultivated and maintained, and it hinges on clarity about an organization\u2019s values and direction.\u00a0<\/p>\n \n\n\n\n<\/p>\n It\u2019s also important to note that not all turnover is bad \u2013 it opens up growth opportunities for top performers and can provide a better working culture if turnover creates a more positive working environment. \u00a0<\/p>\n \n\n\n\n<\/p>\n Organizations that promote positive cultures in addition to competitive compensation retain quality talent long-term. And that makes them attractive to premier job-seeking talent when new roles emerge, or on the rare occasions that turnover occurs.\u00a0<\/p>\n \n\n\n\n The benefits of talent retention<\/strong> <\/h4>\n\n\n\n
The high cost of turnover<\/strong> <\/h4>\n\n\n\n
Effects on future talent retention<\/strong> <\/h4>\n\n\n\n
Influencing talent retention<\/strong> <\/h4>\n\n\n\n
Autonomy within a collaborative environment<\/strong> <\/h4>\n\n\n
Meaningful work<\/strong>\u00a0<\/h4>\n
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Flexibility and life\/work balance<\/strong>\u00a0<\/h4>\n
Retention requires attention and intention<\/strong>\u00a0<\/h4>\n