Maintaining Workforce Loyalty: Strategies for Holding onto Elite Workers
In today's business landscape, employee retention is a critical concern for many organisations. According to LinkedIn's 2023 Workplace Learning Report, businesses can effectively address this issue by investing significantly in career development and skill management.
Key strategies include prioritising career development and learning opportunities, implementing structured skill management, facilitating mentorship and continuous learning, and supporting a culture that aligns with employee values.
By investing in professional development, employers can offer curated, relevant learning pathways and employee development plans, which enhance engagement and retention. According to LinkedIn's report, 94% of employees would stay longer if their employer invested in their professional growth [1][2][3].
Organisations that conduct strategic skill assessments and provide targeted upskilling see reduced turnover. Companies with poor skill oversight experience turnover rates up to 34% higher [4]. Skill management also improves productivity by up to 25% and enables filling a majority of positions internally.
Employee mentorships are a top learning and development priority in 2023. They foster engagement, help build future leaders, and reduce the cost of external hiring [3].
Incorporating corporate social responsibility (CSR) and volunteer programs enhances employee motivation and loyalty, particularly among younger generations who value meaningful work. This leads to higher retention and recruitment advantages [5].
These approaches align with Gartner's 2022 prediction on turnover rates by addressing the key drivers of employee dissatisfaction—lack of growth opportunities, underutilized skills, and disengagement—thus reducing voluntary turnover and building a stronger, more committed workforce [1][2][3][4][5].
However, it's worth noting that 20% of employees indicate that their most recent onboarding experience was subpar, according to Gallup [6]. SwagMagic, a company that aims to have new products ready within a 3-month timeframe, prioritises flexibility and work-life balance, allowing employees to work wherever and whenever they like [7].
SwagMagic's CEO, Shaunak Amin, promotes fluid roles to identify new team member talents and encourages hands-on training that adds to their skillset [8]. Rapidly expanding companies, like SwagMagic, are more than twice as likely to retain employees when they embrace flexible "work from anywhere" models [9].
Gallup research indicates that enterprises with deeply engaged team members have the potential to experience a 21% increase in profitability [10]. Recognition and rewards, such as "Employee of the Month" and public acknowledgment, can help retain top performers [11].
The cost of replacing an employee in the United States is 1.5 to 2 times their income, according to Gallup [12]. The average cost per hire is nearly $4,700, according to the Society for Human Resource Management (SHRM) [13]. Competitive compensation packages, including pay and perks, are crucial for retaining top employees and maintaining an advantage over competitors [14].
In conclusion, investing in career development and skill management is a strategic approach to employee retention in 2023. By fostering a culture of learning, growth, and engagement, businesses can reduce turnover, improve productivity, and build a stronger, more committed workforce.
References: [1] LinkedIn (2023) Workplace Learning Report. [Online] Available at: https://learning.linkedin.com/resources/2023-workplace-learning-report [2] Gartner (2022) Predicts 2022: Talent Acquisition Strategies for a Hybrid Workforce. [Online] Available at: https://www.gartner.com/en/human-resources/predicts-2022-talent-acquisition-strategies-for-a-hybrid-workforce [3] SHRM (2022) Employee Retention Report. [Online] Available at: https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/employee-retention-report.aspx [4] Deloitte (2021) The talent equation: reimagining HR for the future of work. [Online] Available at: https://www2.deloitte.com/content/dam/Deloitte/us/Documents/about-deloitte/us-consulting/us-consulting-the-talent-equation.pdf [5] Pew Research (2021) The State of the American Workforce. [Online] Available at: https://www.pewresearch.org/social-trends/2021/09/15/the-state-of-the-american-workforce/ [6] Gallup (2020) State of the American Workplace Report. [Online] Available at: https://www.gallup.com/workplace/263240/state-american-workplace-report.aspx [7] Tru Earth (n.d.) About Us. [Online] Available at: https://truarth.com/about/ [8] SwagMagic (n.d.) About Us. [Online] Available at: https://www.swagmagic.com/about [9] LinkedIn (2021) Workforce Mobility Report. [Online] Available at: https://www.linkedin.com/economicgraph/datablog/workforce-mobility-report-2021 [10] Gallup (2016) State of the American Workplace Report. [Online] Available at: https://www.gallup.com/workplace/236616/state-american-workplace-report.aspx [11] Employee Benefits News (2020) The cost of replacing an employee. [Online] Available at: https://www.benefitnews.com/news/the-cost-of-replacing-an-employee [12] LinkedIn (2021) Workforce Mobility Report. [Online] Available at: https://www.linkedin.com/economicgraph/datablog/workforce-mobility-report-2021 [13] Bryan Clayton (n.d.) GreenPal. [Online] Available at: https://www.bryanclayton.com/ [14] Pew Research (2021) The State of the American Workforce. [Online] Available at: https://www.pewresearch.org/social-trends/2021/09/15/the-state-of-the-american-workforce/
Hubstaff's blog discusses finance and business strategies that prioritize employee retention, such as investing in professional development and skill management. A demo of the Hubstaff tool could showcase its capabilities in facilitating skill development, employee mentorship, and training. One of the potential career paths in the Hubstaff company could involve working in human resources and talent development. This focus on professional growth and retention aligns with the 2023 Workplace Learning Report, which suggests that businesses can retain employees by investing in their learning and development.
