Talent Retention: A Trillion Dollar Struggle

Talent retention has been the primary topic in 2022 and will continue as such in 2023.

Factors leading to the Great resignation phenomenon have been recently researched by teams of specialists and leading organizations in the Talent sector and Voluntary Turnover is expected to reach a staggering 25% in 2023, as compared to less than 20% pre-pandemic* (Gartner)

North Lead, Member of AIMS International, has conducted a series of webinars in 2022 and is continuing to consistently tackle this central pain point in 2023, teaming up with our local, regional, and global clients to resolve their growing challenges. Although the identified factors are well known to the recruitment industry professionals, the devil lies in analyzing and understanding the phenomenon under various influencers, including industry, organization’s profile, geographical region, and business culture, among others. Throughout different industries in North America, the average employee tenure varies under the influence of these elements, with an expected two years being the lowest and six the highest*(US Bureau of labor statistics)

We all acknowledge as experienced leaders that today’s technology-based, multigeneration, ethnically diverse corporate environment depicts an entirely different portrait than we experienced in the past two decades.

To bridge the gap between two different eras, and through my own experience and that of fellow decision-makers, teams, colleagues, and even competitors with whom I interacted, we came to identify the top three common employee retention elements, independently of geographical, industry, and business culture.

Whether you are a Media, Industrial, Travel, Finance, Tech, Life Sciences, Energy, or Retail sector Leader, we have experienced, throughout 25+ years of multisector career in diverse geographical markets, including the Americas, EMEA and APAC, how businesses cannot afford to not care about their Talents. Replacing a Talent in 2023 could cost from one-half to twice as much the amount of the Talent’s annual salary (*SHRM)

In North America, more than a Trillion USD is being lost annually by businesses due to voluntary turnover. *(StatsCan). (US Bureau of labor statistics).

So, what are the top three critical elements highlighted in this series of articles?

Although there is always room for disagreement, we came to identify Personal Development, Compensation, and Workplace Civility as the primary three influencers.

Personal Development and Ongoing Training:

It is crucial to encourage a growth culture and communicate to team members that their organization values initiative rather than complacency. Giving evidence and showing how this is applied within the organization is paramount.

All employees should have the opportunity for personal development through ongoing, open, dynamic, tech-based expert-managed personal
development and training programs. While I have experienced businesses in the Tech, Media, and Travel industries thrive when employees grow through personal development within their roles, I have also witnessed how its lacking could have key Talents seeking an exodus.

In today’s corporate environment, your top-performing talents know how good they are, and as a Leader, you should not allow ambiguity around the definition of success, which could negatively affect their performance, engagement, and retention. Make sure communication of what defines a top performer in your team is crystal clear.

Keep an expert eye on your team members, one that detects their sweet spots and empowers them to improve in the areas where they excel. Make room for ongoing courses and conferences in your budget and offer open lines of communication for employee feedback.

Additionally, providing financial wellness programs gives a new dimension to Personal Development. It contributes to the Talent’s knowledge and experience in optimizing budgeting and managing expenses, which reflects positively on Talent’s work-life balance. Enhancing the Talent’s perception of how far their existing compensation can reach creates a barrier to entry against competitors headhunting for the same Talent.

Training and personal development are not only necessary but also very much expected by Millennials, gen Y, and Z. This is far more achievable today, considering the abundance of Cloud-based learning platforms and learning management systems. More and more forward-thinking employers are expanding well-being and mental health initiatives. After all, it is in times of challenge when we need it the most. If your organization is not there yet, consider implementing these technology-based programs promptly, as our global Talents Consultants have seen that cultural transformation directly correlates to productivity and retention.