7 Recommendations for Employers on Retaining Talent
Retaining talented employees is takes on a higher priority when more jobs become available.
With the cost of replacing workers who leave or don’t work out at two or three times their compensation, companies are advised to monitor and revise their retention programs in order to encourage employees to stay with them longer.
To help organizations better plan their retention efforts, ClearRock offers the following seven recommendations on retaining talent:
- One-size retention programs do not fit all – even within the same organizational level or salary band. Unlike severance programs, which tend to be fundamentally more uniform, employers are customizing their retention efforts to fit the individual employees they want to retain. While programs such as coaching and retention bonuses have been generally regarded as senior-level benefits, they are also being used to retain high potential employees and middle managers.
- Monetary-related retention programs such as raises and bonuses are commonly not the first response – or even the best.Although compensation increases and bonuses have their place, relatively few employees decide to leave an employer only because they have issues with their pay. Career potential and opportunities for advancement are also usually part of the reason employees consider leaving.
- Many talented employees want recognition of the value they bring, a career path within the organization and a plan for their future development.An effective retention method is for employees and their managers to mutually develop career paths for them with benchmarks to measure their progress and commensurate rewards, including monetary ones.
- Sufficiently preparing employees for career advancement is equally as important as planning their career paths. Developmental coaching is an indicator to employees that their talents are valued, and in addition to helpinggrow their managerial and leadership capabilities, can be an effective retention method.
- Non-monetary retention rewards can be effective. Mentoring programs teach employees job-related skills and tutor them on how to refine their interpersonal relationships. Other effective non-monetary programs include flexible hours and work schedules to fit an increasingly diverse work force, casual dress policies and expanded opportunities to work at home.
- Employees and employers alike can benefit from a more educated work force. Tuition reimbursement is considered a mutually valuable retention tool – particularly for job-related courses and training that better prepare workers for their current and possible future roles.
- Place as high a priority on retaining talent as on recruiting employees. With a majority of employers developing their future leaders internally, rather than hiring from the outside, companies have a greater investment, in both time and money, in experienced workers. Realize that they are just the type of employees other organizations – including your competitors – want to recruit the most.
Employers need to dedicate extra attention and resources to retaining their top talent so they can keep them aboard – and satisfied – and protect their leadership pipelines and competitiveness.
