A company’s ability to implement human talent retention strategies is fast becoming a key factor in competing. If hiring the right talent is already difficult, retaining them is an additional challenge. Because of this, Allen Woo has used his knowledge of people management to provide some essential tips and strategies for effectively retaining human talent in a company.
When a company sets out to conduct a recruitment process, it is normal for a great deal of financial and HR effort to be devoted to this important task. However, many leaders do not give the same importance to talent retention or do not care about it at all, which can result in additional costs for the company.
If an organization wants to keep its best workers in the long term, it must know the actions and strategies for talent retention, which are detailed by the expert. Employee retention refers to a company’s efforts to retain its most valuable asset – human talent – for as long as possible.
“Sometimes retention comes completely naturally, thanks to a combination of good incentives from the company, excellent leadership and the goodwill of employees who are happy to work for the organization,” Woo explains. “However, it is not advisable to expect it to happen naturally, as you may lose excellent employees in the process. The best thing to do is to resort to retention strategies that prevent their departure.”
It is also important to know the turnover rate if you want your company to increase its long-term profitability. However, while they are related, the retention rate is not the inverse of turnover due to important differences between the two.
On the one hand, some companies choose to calculate the turnover rate based on employees who left on their own accord, excluding those terminated for cause. On the other hand, to obtain real data, the retention rate must be measured over a considerable period of time; at least one year is recommended.
Woo suggests starting by hiring the right person from the beginning. Retention starts from the employee application process, candidate screening and job interviews. According to Woo, 35% of employers who hire new staff do so with the expectation that more employees will quit during the year.
If a large portion of new hires are already expected to leave before the end of the year from the start of the hiring process, it’s no wonder turnover rates are so high. It’s important not to fall into that kind of negative mindset and make sure you hire the right employees from the start.
Many employees admit that they will stay with a company longer if they know better what their role will be at the time of hire. A bad experience during the hiring process – for example, if they last too long and create uncertainty – and then performing functions that they were not previously informed about, is an “excellent” formula for an employee to leave their job in a short period of time.
Following the previous point, a bad hire costs much more than the employee’s salary, since it brings with it all kinds of negative effects. This includes reduced productivity, wasted time in training an employee who may leave in a short time, and reduced morale in a team that is constantly seeing its parts change,
Knowing this, you can’t hire the right person unless recruiters are involved, not just with the interviews, but with the entire selection process, and one of the parts of this process is precisely the job description. A description that is too technical or too vague results in a greater recruitment challenge and the loss of talented candidates to other companies simply because they don’t know exactly what the job is about.
“Pairing a new employee with an experienced worker to mentor them can ensure greater long-term retention,” Woo asserts. “Mentors are important figures who bring their knowledge, experience and fresh insight into how things are done to new talent. Assigning a mentor to new hires prevents mistakes from being made, and raises production and engagement.”
And finally, use technology to improve the work climate. Many employees feel the desire to leave their job when the company’s environment is not to their liking or has deteriorated too much. A useful tool to anticipate such scenarios is to use employee survey software.
This resource opens a window of conversation where people can express their doubts, opinions and concerns about the work environment, and thus determine what aspects can be improved and what measures are needed to improve the situation. If conducted on a regular basis, it is possible to measure the evolution of employees’ opinions.