There is no secret that talent retention is essential to promote organizational growth. However, retaining talent is a difficult task. While a 90% retention rate with a 10% turnover rate is desirable, a 2021 Bureau of Labor Statistics report stated that an average annual turnover rate is closer to 57%, indicating that talent retention has become tougher than it was.
What are Talent Acquisition & Talent Retention?
Talent acquisition is the strategic process an employer uses to analyze their long-term talent needs, keeping their organizational goals in mind. Most leaders and organizations consider it a strategic approach to the early stages of talent management, the process employers use in hiring, deploying, training, evaluating, and compensating employees.
Talent retention or employee retention is the ability of an organization to prevent its best employees from leaving. Since losing their best talent is disruptive and expensive, organizational leaders develop a strategy that helps retain their top talent.
Importance of Effective Talent Acquisition
Enlisted are the reasons why organizations must focus on effective talent acquisition.
Getting the right people
Your organization must develop an effective talent acquisition strategy that focuses on finding the best candidates for the roles instead of filling open positions. Therefore, it is crucial to judge the candidates on every matter for the job- from skills to future development and cultural fit. Besides ensuring suitable hires, it affects your organization’s quality of hires and turnover.
Your organization’s biggest asset is your employees; having the right people in the right place generates outstanding value. Hiring candidates with the right skills and motivation boosts business and helps the organization to thrive in the competition.
Preparing the future
Although replacing key roles in your organization might seem impossible, a strategic approach to talent acquisition ensures that your employees have the right skills and disposition to develop into leaders. Ensure to screen and assess the candidates so that when you hire them, they can take over the new roles.
Why Talent Retention Is Crucial For An Organization?
The key benefits of talent retention for an organization include the following:
Better customer relationships
Your company’s relationship with your customers is essential for its success. In several industries, one-to-one relationships are effective in driving business. Since customers’ trust takes time to develop, many buyers are comfortable having a trusted contact if they have trouble with the products or services. Therefore, retaining your employees is essential for retaining your customers.
Boosts employee engagement
Engaging your firm’s work and mission is a long-term process. When you support your employees, they feel invested in your organization’s future and plan to stay, and are more likely to outperform in their roles. A study found that highly engaged organizations are 23% more profitable than those with lower engagement.
Preserves institutional knowledge
Institutional knowledge involves the ins and outs of your organization, nuances of customer and vendor relationships, and the history of successful and failed initiatives. All these are invaluable and possessed by the oldest employees. When you retain these employees, your organization runs smoothly, allowing them to pass down key insights.
Effective Strategies to Attract and Retain the Best Talent
As a leader, you can implement the following strategies to attract and retain your top talent.
Know your company’s mission and vision
When choosing the best talent for your organization, identify the crucial skills and values of the organization and fill the positions around the needs instead of hiring a single employee. When you are clear with your employer’s brand and values, the candidates better assess their fit. Furthermore, when your values align well with your employees, they feel more engaged and flourish.
Build an employee-focused culture
Your employees value work-life balance and appreciate when you offer flexible work schedules. You can also offer your employees on-the-job training and potential promotions. Today’s employees want to feel valued. You can offer them the same by appreciating them through various employee-recognition programs, performance bonuses, and comfortable work environments. You can also help them unwind by allowing them to participate in various activities within your organization.
Offer regular feedback
Employee feedback drives growth at all levels. When you use feedback consistently, employees understand their performances and improve the skills they lack. If the leaders are transparent, employees are less likely to feel left in the dark. Besides increasing retention, their quality of work increases and improve over time. Leaders must create a channel for employees to give feedback. It helps your company support your employees and attend to their needs.
We live in a hyper-competitive marketplace where the importance of employee retention is very clear. Talent Intellect emerged as a leading talent acquisition partner in South Asia and Thailand that believes in driving business excellence by bringing out the maximum potential of resources. The organization understands the value of an inclusive work-culture environment and ensures growth and sustainable development.