Busineses that are finally beginning to see signs of recovery are now facing a new threat – losing their most valued employees to a new job. After studying companies of all sizes around the world, PI Worldwide® today outlined the top five strategies for companies to reduce the risk of losing a key employee to new market opportunities emerging with the economic rebound.
With recent Conference Board data suggesting that U.S. job satisfaction is at its lowest level in two decades, and that 22% of U.S. employees do not expect to be at their current jobs a year from now, the threat of losing high-potential or mission-critical employees is an issue that companies need to be actively addressing.
“Research indicates that as soon as consumer confidence recovers, quit rates begin to rise,” notes PI Worldwide director of research, Dr. Todd Harris.
PI Worldwide consultants agree and has seen local companies paying close attention to the issue.
“Employees who are more likely to leave can be reliably identified via combinations of factors, the secret to success is knowing what factors are most important and having a process in place to monitor, mitigate and manage each of them in a way that creates a positive work environment for all employees,” PI Worldwide adds.
PI Worldwide research has identified these top five “best practice” strategies for companies looking to retain their best employees:
1.
Target The Talent Pools. Be strategic and rational as you make employee investments. Look closely to determine which talent pools in the company are truly critical to future success.
“Often times companies overlook future impact, the critical talent pool for future success may not be in the jobs that are critical right now,” Harris notes.
2.
Work The Data. Measure and analyze potential drivers of employee turnover both externally and internally. Externally, companies should look at job markets, functions, and managers. Internally, managers should review data on employee personality, education, experience and promotion history.
“Take a rigorous and data-oriented approach to employee management.” Harris adds. “There is gold to be found in the numbers and data.”
3.
“Embed” Your Employees. Motivation and morale are good, but companies looking to keep employees long-term need to be focused on job embeddedness – Fit: How well the person fits with their work, workplace and community; Links: The richness of their personal relationships with co-workers and the degree to which other depend on them; Sacrifice: The things they would need to give up if they left their job.
4.
Hire Right. Ensure that employees are a fit for the job and the company right from the start. Develop a process to consistently review what knowledge, skills and abilities are needed for the role, while additionally ensuring that the candidate’s personality is a fit for these requirements and with their potential teammates.
“It sounds obvious, but often companies jump right into hiring without taking the time to analyze what attributes are most needed and which ones will be most successful,” said Harris.
5.
Identify Growth Opportunities. Survey findings consistently indicate that providing superior growth and development opportunities can reduce turnover. Incorporate training and development opportunities into the “total rewards package” that is offered. Be sure to explore development at all levels and age groups.
“Often we see companies over-focus development and training efforts on new employees and the younger workforce,” notes Harris.
Companies looking to learn more about new ways to approach employee retention and how companies in their industry are managing this new challenge as the economy turns around, can visit PI Worldwide at http://www.piworldwide.com/employee-retention to view case studies, expert video discussions and to learn more about how PI Worldwide can help. For ongoing insights into the role personality plays in organization culture, follow Dr. Todd Harris on Twitter: @PIWorldwide.