Employee retention helps maintain a stable and experienced workforce, boosting productivity and reducing costs associated with hiring and training new employees. High retention rates also foster a positive work environment, leading to higher employee satisfaction and overall performance.
According to a recent survey conducted by the PWC, 56% of workers agree that the opportunity to learn new skills largely determines their decision to stay or leave their current employer. However, only 66% of employees feel that their employer provides adequate opportunities to learn new skills for their future careers. This gap presents a significant challenge but also an opportunity for organizations to improve their retention strategies.
High turnover can lead to increased recruitment costs, loss of valuable knowledge, reduced productivity, lower team morale, and talent gaps that hinder growth and competitiveness. Hence, employers must focus on retaining their top talent.
Strategies for Effective Employee Retention
Retention efforts should start at the very beginning of the employee lifecycle, beginning with recruitment and onboarding. Creating a positive first impression, providing clear career paths, and fostering a supportive work culture are essential from day one.
Here are some key strategies to consider:
Competitive Benefits: Offer fair and competitive salaries, comprehensive benefits, and performance-based incentives.
Career Development: Provide opportunities for professional growth and advancement, establishing clear career paths within your organization.
Employee Recognition: Regularly acknowledge and reward employees’ contributions.
Work-Life Balance: Promote flexible and personalized working arrangements, as well as a healthy work-life balance.
Supportive Workplace Culture: Implement initiatives to keep employees engaged and motivated. Offer programs that support employees’ physical and mental health, maintain open communication channels, and actively seek and act on employee feedback.
PWC's Approach to Employee Retention
PWC emphasizes fostering a culture of continuous learning to retain employees. This strategy benefits both employees and employers, helping businesses remain competitive and future-fit.
Key actions include:
Implementing skills inventories to gain comprehensive insights into workforce expertise.
Ensuring skill-building programs reach all employees.
Shifting to a skills-first approach, removing barriers to employees’ ability to apply their skills and contribute effectively.
Additionally, PWC focuses on the employee experience. A personalized People Value Proposition sets employees up to experience factors that significantly influence sustained engagement and motivation, such as conducive learning, psychological safety, individuality, and a sense of community. When employers meet employee needs, employees strive to meet employer needs in return.
PWC explained that traditionally, employers focus on remuneration, offering competitive salaries, bonuses, stock options, and generous leave policies. While these remain top preferences for employees, there is often a disconnect between what employees prioritize and workplace realities. For example, 83% of employees report fair pay as extremely important, yet only 72% agree that their current job provides it.
Pay is particularly crucial, and companies must strive to provide competitive, livable wages. Economic stress negatively impacts employees’ emotional and physical wellbeing, reducing productivity and engagement.
The Future of Employee Retention
PWC’s Global Workforce Hopes and Fears Survey 2023/2024 found that employees prefer employers who demonstrate care and uphold their purpose, values, and culture. The top three employee priorities reported for 2023 were fulfillment, flexibility, and collaboration.
To retain top talent, organizations must provide an exceptional life experience with purpose at heart. Treating workers as people and taking into account everyone that matters can help bridge the gap between employee expectations and workplace realities, ensuring long-term engagement and success.
Sources:
PwC’s Global Workforce Hopes and Fears Survey 2024 - African Perspectives
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