November 2, 2022
Reduce Turnover in Changing Markets￼
As leaders look for ways to improve their companies’ ability to thrive in a tumultuous market, they will push to reduce turnover. Contrary to the familiar reactions to volatile markets of the past, layoffs and downsizing don’t make as much sense. A forward-thinking leader in 2023 wants to keep key employees. Doing so puts them in a strong position during especially complex environments where predictions exist, but what actually happens is anyone’s guess.
Leaders in today’s business market fully expect to operate in similar circumstances as 2023 gets underway. Signs still point to a potential cooling of the market. Political conflicts are expected to persist into 2023, as are slow supply chains, the war in Ukraine, and ongoing global health concerns about COVID-19.
Leaders do have a challenge when it comes to retooling their retention strategies for the future of work. A November 2022 Bureau of Labor Statistics reports an uptick in employee departures from past years. In fact, over the last 12 months, 4.1 million people quit their jobs and 1.3 million were laid off or let go. Potential abounds for the companies and teams that figure out how to stick together.
Here are two focus areas that make the most impact for companies in terms of employee retention.
Training and Development
In uncertain markets, companies have smaller budgets to work with. Training and development can be the first items to go, but leaders that instead choose to double down in this area can expect results that improve their ability to keep employees and raise their productivity. According to a benchmark report from SHRM, it costs up to $4,125 just to bring a new employee up to full operating speed. And it takes an average of 6 months to get them there. An employee that leaves on their own or gets fired walks away with critical resources in money and time.
If leaders invest in training and development for employees they can spend on the front end and see compounding dividends as their workers grow in skill level and ability to perform. Some workers don’t voice their difficulties at work unless managers make a point to help them. Companies that prioritize training and development as a valuable part of their business model have made a safe place for employees to work on their weaknesses as they come up. Difficulties get solved right away which mitigates any negative impact they might have had.
Training and development can look different for each organization and can include on-the-job observations and practice. It can also include 1:1 coaching in a private setting. Training and coaching improve a person’s mastery of both technical (job-specific) and “soft” skills like communication and time management. The key is to make training and development support accessible to all employees so that engaging in the training helps them and doesn’t have any adverse impact on their ability to work.
TaskHuman’s coaching platform offers on-demand coaching to employees during work hours or in off times that make sense for each individual. Companies in many industries use TaskHuman’s coaching resources to meet the diverse needs that their employees have in respect to their uniqueness as individuals. Employees work through highly specialized growth plans that address their specific concerns and access their strengths to maximize potential. With results like these, there isn’t any reason to let an employee go or for an employee to leave.
Belonging matters more now than it ever has. The future of work includes an acceptance and celebration of purpose for individual workers. More people want to work for companies that offer them emotional rewards in addition to financial compensation. What it means for leaders is more attention paid to the company values and mission. Leaders can keep star employees and attract more high performers if they get good at articulating their core values and assimilating them into a strong company culture.
Leaders can start the next year brightly by putting info structure in place to proactively cultivate belonging among employees. Some companies that excel in this area have employee-led committees that coordinate opportunities to connect and unite with colleagues. Managers fully commit to the cultural aspect of their job as much as the fiscal responsibility. Authentic commitment to core values has to be present from the top down for true attachment to occur. Leaders of today are taking the first critical step to building out their core values so that employees have in them a firm foundation, which is oh-so refreshing amid the ups and downs of the business climate.
Employee Growth Pays Off
When employees leave, they leave with corporate knowledge and performance value that takes a long time to replace. In the same way, not engaging and developing employees cuts away at the talent resources that would otherwise abound. More leaders understand the importance of investing in the people that make them run. That means greater satisfaction and productivity for everyone and fewer musical chairs in terms of staffing.
More to come. Join our Monthly Digest!
Stay on top of the latest HR resources, news, and events. It’s a community where like-minded HR leaders looking to transform their company’s overall well-being.