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I’ve been asked by about dozen people to give my HR and Talent predictions for 2015. I haven’t done any yet, because there is really one, serious, one that came to mind. The one prediction that is keeping me up at night, is RETENTION! More specifically, how do we retain our employees as the options for their talent continue to increase.
Here are some alarming points from the Emerging Workforce Study:
- 25 percent of all workers are likely to look for a new job in the next 12 months.
- Companies report they have only put in minimal effort to retain their workers.
- Companies that do not have retention programs in place have 61 percent more expected turnover in the next 12 months, compared to companies who have retention programs in place (average expected turnover 21 percent vs. 12 percent\
One of the main problems is that employers and employees wholeheartedly disagree on what drives retention. Employers focus more on intangible items, feeling that the management climate (89%), an employee’s relationship with his or her supervisor (85%) and the culture and work environment (81%) are most important when retaining employees. Not surprisingly, employees focus more on ‘bread and butter’ issues, feeling that financial compensation (78%), benefits (76%) and growth and earnings potential (71%) are most important in retaining employees.
The reality is Retention in HR use to be a ‘sexy’ topic to talk about and game plan. The recession hit a decade ago, and retention was no longer an issue. It was virtually forgotten about for 10 years! No one cared. Employees were staying because there weren’t any jobs. That is rapidly changing and we have an entire generation of leadership and HR that doesn’t even really understand how to retain their own talent.
Isn’t there an App for that? Probably, but it doesn’t really work!
Retention is one of those crazy things that takes a lot of effort by a lot of people to make it work. Great leadership. Check. Great compensation and benefits. Check. Great work environment. Check. Growth potential. Check. Retention is all about ‘blocking and tackling’. You have to do all the basic leadership and HR things well. Let one go, and Bam! You have a retention problem. You can cover up problems by doing one of these things really well, but it’s a short term solution. You pay the best! Great, you bought yourself some time. You have horrible leaders? Great pay only works so long before people will leave!
Retaining your best workers will be one of the most talked about issues by the end of 2015. By then the unemployment numbers will be low enough where bad companies can no longer get good talent, or the good talent they have will be leaving for better companies. That’s the tipping point. We are quickly getting there. Are you ready?
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