Tackling the retention crisis
Employee turnover continues to rise in the UK in 2021 as the post-pandemic job market becomes more competitive and wages rise. Many employers are reported to be concerned about employee retention especially for their hard to find and replace people. Should they be concerned? For companies relying mainly on pay and other ‘hygiene’ rewards, yes.
Many pundits are currently recommending that employers should now increase their pay and associated benefits packages to offset the risk of staff leaving. However, as has long been established, where pay levels are already equitable in the market, simply paying more isn’t effective in retaining people in post.
Why do people stay with their employer? In the main because they are committed to the work they are doing and to their employer – they enjoy and find meaning in the work, the culture and their sense of being valued and continually developing. Where these are missing, those staff staying simply for the money are rarely the most engaged and productive employees. Equally, for employees in this position, this rarely represents an optimal work experience. In a recent survey 21% of employees claimed that inadequate career development was their reason for leaving for another company.
The impact of losing people can be significant. McKinsey research indicates that high performing staff are 400% more productive than average performers. In the summer, the CIPD reported that 36% of business services companies (i.e. law, consultancy, science, technology and marketing) have hard to fill vacancies. 44% plan to respond to this issue by upskilling existing staff.
In an increasingly competitive job market, efforts to retain valued people are especially important. Employees who feel they are developing, are valued by their employers and are able to flourish on a personal level are more likely to stay. It is better business sense to deepen the mutual value employers and employees invest in each other than simply to throw more money into the salaries pot.
The CIPD’s Labour Market Outlook Summer 2021 recommends that employers should raise the quality of work they offer to attract and retain the best people. Providing development and career opportunities, upskilling managers, and boosting job quality are essential components.
What is your company’s strategy for developing and retaining high performers?
Managing Change provide executive and career development programmes including our highly regarded retention and development Potential! programme. Do get in touch if you'd like to know more about we can help you and your teams. Email us on enquiries@managingchange.org.uk or call 01223 655667.