From layoffs, outsourcing, and cost-cutting measures, transformations in the workplace have left organizations scrambling to manage their existing workforce. Layoffs and lack of career opportunities and support contribute to decreased commitment and lower engagement and well-being, making employees wonder, should I stay or should I go? More often than not, the answer is –go.
High Retention Rate Ensures Highly Productive Organization
Employee retention is key to ensuring a successful and thriving organization. It has been demonstrated that employees provide greater value and productivity over time the longer they stay with an organization. The average cost of losing an employee amounts to 33% of their salary, in addition to time spent recruiting, training, and investing in a new hire. The total market cost of employee attrition in the US is projected to be an astounding $435.7 billion by 2030.
The Challenge: Mobilizing the Right Talent into the Right Direction
87% of HR leaders recognize that retaining top talent is a pressing problem but lack adequate response. The critical challenge organizations face is understanding their talents’ motivations and mobilizing in the right way to fit strategic business needs. However, even among employees who choose to stay within a company, 54% are unclear about their progression and career path, which plays a big role in their productivity and engagement, and puts them at risk of retention. Ultimately, professional development is the primary reason why 70% of employees feel forced to leave an organization.
Talent development – The core of a Successful Employee Retention Strategy
Employees who understand their roles and responsibilities and have clear career paths are 27% more likely to stay at a company than seek opportunities elsewhere. Talent development is critical to keeping employees engaged, skilled, and likely to thrive with an organization. When employees and managers have visibility of their skills and career pathways, they gain clarity into their roles and future direction. Ultimately, this provides employees with a sense of purpose, fulfillment, and inspiration throughout their career journey, contributing to better business results.