Don’t Let Your Talent Walk Out. Talent Management.
Quit rates are rising.
The Bureau of Labor Statistics has found that the rate at which employees willingly leave their jobs, also referred to as the “Annual Quits Rate”, has been rising steadily ever since July 2009, the peak of recession.
Historical and economic data suggests that this annual quits rate will go on to rise. Companies are therefore going to find the task of talent management, and especially keeping their best employees from quitting, unexpectedly challenging.
In their Human Capital Benchmarking Report, The Society of Human Management (SHRM) states that voluntary turnover is now the most important consideration for employees.
Skilled employees will have several opportunities knocking at their door, making it easy for them to change jobs and take their valued skill sets with them.
What can you do to keep your best employees? The only solution is for good talent management is to give your employees enough reasons to believe that staying at their job will be more beneficial than quitting it.
You need a good talent strategy and talent management system to keep your most valued employees from leaving.
The following is a brief overview of the four critical steps, identified by Globoforce (a leading organization in employee recognition) that will guide you in creating such a strategy:
Invest in Retention
Companies cannot underestimate the expenses they have to bear every time an employee quits. With larger numbers of workers quitting their jobs for better opportunities, companies find themselves investing more and more money into hiring and training new employees.
Surveys suggest that this cost can range anywhere from 30% to 200% of the departing employee’s annual salary. Moreover, vacancies in the company often lead to lower morale and lower productivity.
The simple solution is to create retention programs that will make employees more likely to stay. Before investing in a retention program however, HR professionals are advised to justify the cost of such a program and ensure that it doesn’t cost the company more than it would if employees were to quit.
Understand Why Your Employees Are Leaving
While there may be several reasons for employees to quit their jobs, companies are advised to hold engagement surveys that will help identify specific factors that cause employees to quit.
Such surveys are held among current employees and organizations should be willing to address and invest in the talent management issues that the survey brings up.
Understand the Significance of Value
Organizations are advised to identify their best talents, such as high potentials, high performers, or succession candidates.
Surveys suggest that when a company loses its best employees, it directly affects the company’s bottom line. A talent management system that allows employees personal growth, effective utilization of their talent, increased confidence, and better management and learning, is more likely to discourage employees from quitting.
A Globoforce survey has found that simply providing employees with positive feedback and appreciating them for their work will boost employee satisfaction and encourage workers to stay.
Creating A Positive Workplace
A survey suggests that happy employees tend to stay longer at their jobs. Happiness at a workplace is obtained by a sense of autonomy and fulfillment.
Employees are constantly in need of opportunities to grow and contribute directly to their organization. A positive workplace with satisfied employees, therefore, faces fewer risks of losing their talent.
Companies can set up an efficient talent management by simply following the 4 crucial steps listed here.
Read ahead for the detailed report by Globoforce if you wish to better understand the art of talent management.