Retaining talent is a challenge for many employers in the current job market, especially those relying solely on traditional retention strategies. We explain why employers should rethink retention.
The job market is hotter than ever for many industries across the nation. While this is empowering for employees, it poses new challenges for employers, especially when it comes to retaining top talent. It’s important to utilize retention strategies suitable for modern times rather than outdated approaches to overcome these challenges.
As a background check company serving employers across the United States, we have our finger on the pulse of hiring and, thus, retention as well. We offer the following advice for modernizing retention efforts for today’s market.
First, the days of employees sticking with one company for life are over. Thus, the old goal of minimizing overall employee turnover should be replaced with a more achievable goal: influencing who leaves and when.
Companies should conduct honest assessments of which team members they want to keep indefinitely, which talent they need for well-defined periods, and which roles require little training and can be easily filled as needed. Once each group has been identified, employers should employ effective retention efforts as suitable.
Compensation is one of the most popular retention mechanisms, but it must be recognized that it is easy for competitors to match or beat salaries and benefits packages. However, compensation is still a valuable tool. For example, some employers offer limited-time premiums to talent with hot skills while those skills are needed most.
Job design should also be examined carefully for retention. If an employer is struggling to keep talent in a critical role, they should study exactly why people leave. A likely reason is a tedious or difficult job duty that isn’t actually central to the role. If this task can be shifted to a different position, it will increase retention for the more critical role.