In a recent post, I wrote about the simultaneous occurrence of two conflicting trends: high unemployment and high talent shortage. With this reality in mind, it may not seem so strange that while the job market is extremely competitive, organizations still struggle to recruit workers.
In fact, in a recent study by AchieveGlobal, titled Worldwide Trends in Employee Retention, our research revealed that nearly 25% of participants said they were planning to leave their job in the next year. This may seem surprising, given the fickle job market. Logic seems to dictate that if you have a job in these times, you’re wise to hold on to it!
But the reality is far more nuanced. Our study revealed that today, as we struggle to climb out of the deep recession of the past few years, people continue to leave their companies for some of the same reasons they always have.
The top three reasons workers leave their employers are:
1. Insufficient compensation and benefits
2. Lack of growth and development opportunities
3. Contributions not being appreciated by management
And there are so many reasons that companies should generally strive to retain employees, not the least of which is that recruitment, though often necessary, is a cost that can be avoided by retaining the right people. When employees leave, companies also suffer other negative residual effects, including:
- Declining employee morale
- Weakening of community relations
- Decreasing production quality
- Weakening of employee relationships
- Diminishing financial performance of the
organization
But trying to retain good employees does not have to be a shot in the dark. Our research pointed to four fundamental strategies that employers can use in order to retain employees:
1. Offering competitive compensation
2. Ensuring employee recognition
3. Providing growth and development opportunities
4. Ensuring a healthy work-life balance.
It is precisely those high-performing employees who will be attractive to other organizations. So, once we realize that they can find an employer in almost any economic environment, we must build a culture that embraces them and provides for their professional needs. And, these strategies will help in recruiting as well, so the benefits will continue to accrue through good times and bad.
Sharon Daniels is CEO of AchieveGlobal in Tampa, Florida
