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IT’S NOT ENOUGH TO RETAIN PEOPLE. IT’S ABOUT RETAINING THE RIGHT PEOPLE.


BY MAKENZIE RATH

April 14, 2022Blog

The Great Resignation. The Great Reshuffle. The Great Renegotiation. Whatever we
call it, people are changing jobs, retiring, or quitting work altogether in
record numbers—over 4 million since July of last year.

I’ve seen firsthand that reducing turnover can save millions, so retaining
employees is critically important. The problem is that leaders don’t always have
the resources to retain all employees. There’s no one-size-fits-all for
retention. First, you need to identify who you want to retain. Then apply
retention strategies tailored to those individuals. Let me explain the why and
how to do that.


THERE ARE TOO MANY JOBS AND NOT ENOUGH WORKERS 

It’s extremely difficult to be in the business of hiring people right now. About
33 million Americans have quit their jobs since Spring 2021. In December, the
state of Nebraska recorded a 1.7% unemployment rate, the lowest on record for
any state ever. Even though that’s gone up a bit, right now there are still only
0.75 candidates for every job opening in Nebraska.


SOME TURNOVER IS OKAY

Because hiring is tough, many organizations double their retention efforts. But
retaining everyone is not only expensive and takes a lot of effort, it’s
actually not a good goal. Organizations should never want 0% turnover. Depending
on the industry and organization, 5-15% turnover is healthy. At Talent Plus, we
try to aim for that. Healthy turnover creates internal opportunities for upward
mobility, keeps your organization agile, and encourages diverse ideas. It also
frees you to celebrate the people who are moving up or moving on, or to recruit
former employees (boomerangs) to return to your organization.


RETAIN THE RIGHT PEOPLE

To focus your retention efforts on the right people, make sure you’re trying to
keep the people you want customers to remember. The process doesn’t have to be
difficult. Managers can identify the “right” people based on what they observe.
The right people are the people who want to be there and enjoy what they’re
doing. They’re really good at their role today, and they’re likely to be good at
their step up tomorrow. And of course, we offer Talent Assessments which can be
very helpful as well.


RETENTION STRATEGIES

Studies have shown that turnover increases around day 90. Because this window of
time is so limited, you should rely on proven retention strategies rather than a
gut feeling. Here’s what I’ve seen work time and time again.

 * Ask and listen to what people want
   * More than anything, listen to what employees need and want. When we get
     back to “normal,” you may need to change company policies. Ask for feedback
     early in the decision process and explain why you’re making a change.
     Without asking about and listening to what employees want, all other
     strategies are shooting in the dark. If people don’t feel heard, they’ll
     feel a waning sense of loyalty, which can drive them to other jobs.
     

 * Invest in hybrid work
   * Many companies are now embracing a hybrid work style, and new technologies
     have made that easier. While it’s sometimes harder for me to engage with
     our remote and hybrid employees, it’s worth it to keep them. In my
     experience, hybrid works best if you have employees who are self-managed
     and work collaboratively. You also need the processes, technology, and
     rewards in place to support and motivate these employees.

 * Give people better schedules
   * Leverage technology to set smarter work schedules and deliver schedules
     earlier so workers can better plan their lives. For example, Kawasaki
     recently implemented a ‘parent shift’ from 9 am to 2 pm. They needed more
     workers, and the modified schedule allows parents to work (and get access
     to benefits) while still being present when their families need them. 

 * Increase benefits and compensation
   * Even if you’ve already raised salaries, consider doing it again because
     chances are your raises haven’t kept up with inflation. You can also
     customize benefits to your employees’ needs like one of our clients did.
     They realized the vast majority of their employees are women, so they
     increased fertility benefits as a retention effort. 

 * Provide lateral career opportunities
   * Providing lateral career opportunities is even more powerful than
     compensation. One way I do this is by creating paths for employees to move
     to a different department—even without a promotion—so they can take
     advantage of a fresh perspective and new challenges. Engaging with
     employees to help them explore their “why” at work, providing a variety of
     experiences and time for passion projects—these are all activities that
     help re-engage and re-energize employees within an organization. 


RECOGNIZE THE VALUE OF YOUR BEST PEOPLE

The real work of retaining your best people begins on day one. Recognize their
talents and welcome them to your organization. Then regularly ask about and
listen to them. Engaging with them fosters trust as you also develop their skill
sets over time. This approach takes a lot of trust, and it has to happen every
single day.

Makenzie Rath is the President at Talent Plus where her role is to focus on our
mission, “We know every person has talent.” Through supporting and partnering
with our colleagues and client partners, Talent Plus works to create a world
where people do what they are good at and enjoy.

“Talent Plus is positioned for unprecedented success and growth because we have
the premier science in the industry alongside extraordinary colleatues.” –
Makenzie Rath

Talents: Focus, Intelligence, Individualized Approach, Conceptualization and
Persuasion


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