Talent retention: Main challenges and how to overcome them

19 de October, 2022

Recruiting and hiring talent is highly challenging for human resources managers. But retaining them isn’t exactly any easier.

Gone are the days when people dedicated their entire working lives to a single company. Nowadays, workers no longer feel the need to stay in a job they’re not happy with. Especially if they have prospects of easily moving on to another job.

Several studies have shown that an employee leaving can cost the company up to a third of their annual salary (not only because of the loss of productivity, but also because of the consequent recruitment costs).

That’s why keeping employees satisfied, involved, motivated and productive should be a priority for companies.

Why do employees leave?

Although they may leave for reasons unrelated to the company and their work, most of the time the reason is likely to be one of the following:

• Low/unadjusted salary;
• More attractive opportunities in other companies;
• Unattractive or non-existent benefits/incentives;
• Overwork;
• Lack of recognition and appreciation;
• The need for a better work-life balance;
• Lack of opportunities for career progression and/or professional training;
• Incompatibility with the boss/management;
• Dissatisfaction or lack of identification with the company culture.

Why is talent retention important?

People are the source of innovation and growth in your company. But this is only true if they are satisfied.

Motivated employees work harder, get more involved in problems and solving them, help their colleagues more… on the other hand, if they are dissatisfied and even open to new professional challenges, they become less involved and productive.

This is why developing an employee engagement and retention strategy is essential: because it improves performance, decreases friction, reduces turnover and, ultimately, contributes to the company’s growth.

8 areas of action to retain talent

1 – Onboarding and orientation

Having a solid onboarding program is the first step in promoting retention. Even if the employee has just joined, the initial support offered from day one can define their entire future experience.

2 – Compensation and employee benefits

No matter how satisfied they are with their tasks, no matter how good their relationship is with their colleagues and boss, at the end of the day employees need to feel that they are being fairly rewarded for their work. This means not only having a competitive salary, but also being able to access employee benefits that suit their needs.

Companies need to frequently evaluate and adjust their salary, benefits and incentives policies.

3 – Other benefits

Benefits such as flexible working hours or the possibility of hybrid or remote working are highly valued by employees, especially after the pandemic. Not having these conditions can lead many employees to look for another company where they can work.

4 – Promoting well-being

An employee who is happy and healthy, both physically and mentally, is more likely to be satisfied and motivated at work. So put your employees’ well-being first.

Provide a health plan, encourage physical activity (by paying for gyms, yoga classes, etc.), develop time management and stress management workshops, among others.

5 – Continuous feedback

Talking regularly and more informally with team members, rather than just doing an annual performance review, is a good way to keep employees more committed.

It’s crucial to provide regular feedback on the employee’s work, but also to make them feel heard and ask for their own feedback: on the company’s development goals, any discomfort or displeasure, suggestions for improvement or any other topic.

6 – Training and professional development opportunities

Give your employees the opportunity to identify areas for growth and encourage them to develop these skills.

Many leaders believe that investing in their employees’ professional development means preparing them to be better at their next job if they leave the company. However, investing in the skills of human capital bears immediate fruit for the business in terms of productivity and innovation.

7 – Recognition and awards

Feeling that their work and commitment are not valued can lead employees to look for another professional challenge. Therefore, make sure that your company adopts a culture of recognition and that each team and employee knows that their contribution is important.

Many companies also materialize this recognition by awarding productivity prizes or bonuses. If your budget is limited, ideas such as organizing a team lunch or offering a symbolic gift can also help employees feel valued.

8 – Work-life balance

A healthy work-life balance is crucial for satisfaction. If employees are constantly overwhelmed with work, if they often have to work overtime, if they can’t reconcile work with personal commitments… it’s very likely that they’ll start looking for alternatives to maintain this balance. And by alternatives, I mean other companies.

Encourage setting limits, such as not looking at emails outside working hours or setting times for meals and breaks. If you have to work overtime, consider giving yourself some extra reward or time off later.

These are some of the main areas of action that companies should consider in order to boost talent retention. Are there any other measures that you consider relevant or that you already implement in your company?