How to retain good talent

Hybrid working isn’t the only legacy of the pandemic when it comes to business. Lockdown also gave huge numbers of people the opportunity to rethink their lifestyles and their working patterns.

The result was what has now become known as the Great Resignation, as workers of all ages elected to swap the routine of salaried work – and with it the stress of a daily commute, deadlines and targets – for new challenges.

Many started their own business, still more either retired or went into phased retirement, and others simply opted for life running the home and spending much-needed time with family.

The result was a commercial environment in which the value of good and emerging human talent exponentially increased. And as it did so, the recruitment landscape became one in which candidates suddenly found themselves with the pick of plum roles.

The reality of that for business was that losing good people was suddenly costing exponentially more, not just in terms of the cost of advertising and interviewing for new staff, but also in terms of skills and knowledge loss.

In short, hanging onto your best people has never been more important.

Retaining top talent is essential for the growth and success of any business, but it’s not always easy to achieve. Here, then, are some effective strategies to make sure you keep your best people in your business:

Competitive compensation and benefits: Providing employees with competitive pay, bonuses, and benefits is a critical component of attracting and retaining top talent. Employers should regularly evaluate and adjust compensation and benefits packages to remain competitive in their industry.

Positive work environment: A workplace that values employees and provides opportunities for growth and development is a key driver in talent retention. Encourage open communication, provide opportunities for employees to collaborate and recognize their contributions and achievements.

Opportunities for growth and development: Employees are more likely to stay with a company that offers opportunities to progress. This can include training programmes, mentoring, and leadership development initiatives.

Work-life balance: Companies that prioritise and encourage work-life balance are more attractive employers and far more likely to retain their best people. This sort of flexibility can include flexible work schedules, remote work options, and paid time off.

Recognise and reward employee contributions: Recognising and rewarding employees for their contributions and achievements is a crucial component of retaining top talent. This can include not only bonuses, promotions, but also other forms of recognition, such as public praise and awards.

Foster a strong company culture: A strong company culture that aligns with employees' values and goals is essential for retaining top talent. Employers should create a culture of transparency, accountability, and inclusivity that fosters teamwork and collaboration

The cost of replacing an employee is currently estimated to be between 6 and 9 months of that individual’s starting salary, depending on the seniority of the role in question.

All other things being equal, this means any new hire needs to have been working with you for between 26 and 39 weeks before you’ll begin to see a return on their salary investment.

The real costs to business of losing good talent:

·         Recruitment costs: Recruiting new employees can be a time-consuming and expensive process. Businesses often need to spend money on job postings, recruiting agencies, and other expenses to find suitable candidates. Additionally, the time spent by managers and HR staff on reviewing resumes, conducting interviews, and evaluating candidates can also add up.

·         Training costs: When a new employee is hired, there is typically a learning curve as they become familiar with the company's processes, products, and culture. This can involve extensive training, which can be costly in terms of both time and resources.

·         Reduced productivity: When a valuable employee leaves, there is a period of time when their work is not being done or is being done by someone who may not be as experienced or efficient. This can lead to a decrease in productivity and a delay in meeting deadlines.

·         Lost institutional knowledge: Experienced employees possess knowledge and skills that are specific to their role and the company. When they leave, this knowledge and experience are lost, which can be detrimental to the business.

·         Reduced morale: Losing a good employee can have a negative impact on the morale of the remaining staff. They may feel demotivated or undervalued, which can lead to decreased productivity and increased turnover.

·         Customer dissatisfaction: When employees who have built strong relationships with customers leave, it can impact customer satisfaction and loyalty.

It's important for businesses to invest time and effort into evaluating, recognising and rewarding the value of their employees, and then work to retain them through competitive compensation, benefits, and a positive work environment.

If you’d like to find out more about how Constantia Consulting can help you to benchmark your talent and build fit-for-purpose reward policies to keep them in your business, please get in touch. We’d love to hear from you.