Why Employee Retention Remains the Biggest HR Challenge in 2024
Are you losing sleep over employee retention? Does it seem like no matter what you do, the NextGen worker is simply never satisfied? If yes, you are not alone, and you are prudent enough to contemplate a solution. Gallup research indicates that “A 10,000-person organization with an already engaged workforce can save up to $16.1 million annually due to reduced employee turnover.” That’s real money! Finding ways to reduce turnover and increase employee retention is crucial for organizations looking to improve their bottom line. Yet, solutions remain elusive, and according to Forbes, 41% of employers are still worried about their retention rates. How Do Staff Retention And Recruitment Strategies Hold Up In 2024? (forbes.com)
Interestingly, Mercer Consulting’s results from the 2024 US Mercer Turnover Survey cite that “The average voluntary turnover rate in the US from 2023 – 2024 is 13.5%. This marks a continued decline in turnover rates over the past several years.” However, if turnover rates are slowly dropping, why does employee retention remain one of the biggest HR challenges of 2024?
Gone are the days when dedicating yourself to your company was a badge of honor. The 21st Century employee sees things a bit differently. Since the pandemic, certain global factors have influenced employee satisfaction & pushed demands to a new normal. Take inflation, increased mental health challenges and political unrest just to name a few. The “how” and “why” we factor work into our lives has shifted, and it appears to be a shift that will stick.
According to the SHRM, current employee retention issues break down as follows:
So, how can employers reasonably clear the high bar?
Strategies for Improving Employee Retention
Here are some strategies to keep your employees retained and engaged:
- Implement competitive compensation and benefits packages: Show your employees that you value their hard work by offering competitive pay and benefits.
- Offer remote work options to improve work-life balance: Allow your employees the flexibility to work from home or choose their hours to help maintain a healthy work-life balance.
- Provide career development opportunities and training programs: Invest in your employees’ growth by offering advancement opportunities and training programs to help them improve their skills.
- Foster a positive company culture that values diversity and inclusion: Make diversity and inclusion a priority in your organization to create a welcoming and inclusive environment for all employees.
- Engage employees through effective leadership and management practices: Encourage open communication, provide feedback, and recognize.
Addressing Employee Engagement
Imagine a world where your employees actually look forward to coming to work, where they feel valued and appreciated for their contributions. Engaged employees are more productive, creative, and loyal – all key factors in improving retention.
Implement Employee Engagement Strategies to Enhance Retention
There are countless ways to keep your employees engaged and motivated, from team-building activities to recognition programs. Find out what makes your employees tick and tailor your strategies to suit their needs. Recognized employees are more likely to stick around for the long haul.
Promote a Culture of Open Communication and Feedback
Communication is key in any relationship, including the one between employer and employee. Foster an environment where feedback is encouraged and acted upon. Your employees will appreciate being heard and valued, leading to higher engagement and retention rates.
Leading in Diversity and Inclusion Efforts
When it comes to employee retention challenges in 2024, one aspect that cannot be overlooked is the importance of diversity and inclusion in the workplace. Not only does a diverse and inclusive work environment contribute to a positive company culture, but it also plays a key role in retaining talent.
Strategies for Creating an Inclusive Work Environment
- Implement diversity training programs for all employees.
- Establish employee resource groups to support underrepresented individuals.
- Promote diverse leadership and decision-making.
It’s crucial for organizations to not only talk the talk but also walk the walk when it comes to supporting underrepresented employees. This may include offering mentorship programs, opportunities for career advancement, and creating a safe space for open dialogue about diversity and inclusion issues.
Leverage Training and Development Opportunities
Skill-based hiring is becoming more and more evident as requirements for pricey college degrees are dropping steadily. More and more forward-thinking trend-setter organizations are providing opportunities to train themselves and promote from within. According to Harvard Business Review, “..leading organizations like Target, Amazon, and EY are increasingly touting their in-house universities and business schools — and expanding apprenticeship programs — as tailored credential programs that prepare talent with the specific skills they’ll need to advance.”
Invest in Employee Skills Development to Enhance Retention
Consider providing access to online courses or workshops to help employees enhance their skills and stay competitive in the industry. Offering on-the-job training and mentorship programs can also be a great way to invest in your employees’ growth and development.
Offer Opportunities for Growth and Advancement Within the Organization
Creating clear pathways for career advancement within the organization can help employees see a clear future and stay motivated to excel. Consider implementing a promotion-from-within policy to encourage employees to stay and grow with the company.
Provide Ongoing Training to Keep Employees Engaged and Motivated
Don’t just stop at onboarding training – offer continuous learning opportunities to keep employees engaged and motivated in their roles. Encourage employees to attend industry conferences, workshops, and seminars to keep their skills sharp and stay at the top of their game.
The current state of employee retention is proving to be a tricky puzzle for businesses of all sizes this year. As we navigate the ever-evolving landscape of the new workplace, it’s crucial to address these challenges head-on to ensure the success and longevity of your organization. And remember, it will show up in your bottom line!
References:
From Praise to Profits: The Business Case for Recognition at Work | Workhuman
Results of the 2024 US and Canada Turnover Surveys (imercer.com)
