We’re in a job seeker’s market. Unemployment rates are low and demand for talent is far outweighing the supply. For top performers, this is a great time to weigh their options. Meanwhile, employers not only want to hang on those same people, they potentially want to hire more of the same. So how can business leaders retain top performers in an increasingly competitive job market? Here are a few good places to start:
Take stock of your culture
The number one way to retain top performers? Yes, it’s culture! Compensation’s at the top of the list, but it isn’t what keeps them around. Evaluating your culture may seem challenging, but there are ways to measure it. The narrower a company’s culture gap (the difference between the culture they’d like to have and the one they do have) the stronger the culture will be.
According to a Catalyst study of high potential employees, 44% of women and 46% of men were likely to leave an organization when the culture gap is wide, versus 3% of women and 23% of men when it’s narrow. The narrower the gap, the more satisfied they are with 1: work & advancement, 2: pay, 3: their supervisors and 4: the company’s commitment to work-life quality and diversity.
Your best and brightest aren’t going to be motivated in an environment that doesn’t embrace growth and development. Employees can seek out training on their own time, but they will be drawn to a company that also takes the time to invest in the same. Training can take place with internal programs, consultants, seminars or free online materials.
The main goal is two-fold – your employees are learning new skills that help them excel, and they remain engaged. Be mindful of the kind of developmental programs you invest in. If you don’t find the material engaging or meaningful, they likely won’t either.
Workweeks continue to get longer – the average employee now clocks in 47 hours. Add to that the fact that technology enables us to be available around the clock; People feel pressure to be responsive even when taking time off. In this climate, companies that offer work from home days or more flexible hours are simply more appealing.
A little perk can go a long way. Robust benefits, including vacation, sick and personal time are a very good start. But how do you set your company apart?
A recent Gallup study found that companies who put a concerted effort into overall employee well-being have much higher retention rates. They defined this by analyzing five different factors: purpose, social, financial, community, and physical.
Additionally, above average maternity and paternity leave, company-sponsored social events, paid time off for community service, tuition reimbursement and free food (everything from healthy snacks to lunches) are excellent ways to retain top performers. While culture remains top of the list, these additional nice-to-haves can certainly give you an extra edge.
In the past decade-plus, offices went from cubicles to more open workspaces. People could better collaborate, generate more ideas and better grow the business, or so they thought. In recent years, this method has proven to have its drawbacks too.
According to a recent survey, up to 90% of employees are unsatisfied with their workspace. The open environment, while valuable at times, does not offer the privacy employees need to recharge and focus when need be. Business leaders are starting to take note and are building environments that incorporate both. If budget is a concern, a little creativity in adjusting your space could go a long way and help retain top performers.
Every company has its own limits as to what they can provide in terms of perks, flexible time and space, but things like culture and how people feel on a daily basis should be a priority. If employee retention is of top concern, hopefully, these serve as helpful tips to consider!
If you’re looking for assistance with your hiring process, TruPath can help!