We are in an employee-favoured market which is a global situation. As we work to understand why good employees leave, we need to proactively find ways to minimize employee attrition.
Aging Population
We expected an exodus of Baby Boomers, creating a considerable labour gap in manufacturing, business, the supply chain and healthcare.
Minimize Employee Attrition
Housing prices in many regions of Canada have become a barrier to affordability while income growth has trailed behind the cost of living rise for years. The pressure is on employers to “pay up.” More than ever, it makes sound, financial sense to keep your most valuable asset – PEOPLE! Monitoring income data to ensure the wages you offer are competitive in the industry is important.
A Proactive Strategy is Required
To solve the issue of why good employees leave, we must think about the following:
- There’s an old saying, “people don’t leave jobs, they leave managers.” If organizational leaders are perceived to manage badly, staff moves on.
- People look for more challenging roles within their current company, so without opportunities, staff look outside your organization.
- Harvard Business Review reported about a study that claimed 86% of respondents said they’d leave their employer for a job offering more professional development.
- Social media gives recruiters the ability to proactively reach out to potential candidates, resulting in employees becoming aware of what seem to be “greener grass” jobs, without actually looking.
How can an employer take steps to improve its retention rate, and what are others doing in the marketplace from which we should observe and learn?
Develop a SMART Succession Plan
Build a plan for succession to unfold over multiple years, with goals that are specific, measurable, agreed upon, realistic and with a target date.
Opportunities to Consider
Consider your talent pipeline strategically when planning around employee succession:
- Who are your most qualified candidates for career development?
- What are the gaps in skills training/professional development?
- Are you focused on the wrong priorities?
- Are you meeting with your talent one-on-one to understand if your plans align with their career expectations?
Here are some final thoughts from Peter Drucker to consider when mapping your retention strategy:
“Good employees quit when management is bad. Bad employees quit when management is good.”
Finally, making decisions without adequate data and input is risky. TAC has survey tools to measure employee satisfaction to help you prioritize the goals that will impact retention, engagement, productivity and profitability. Some of these services are provided for free. Contact us to help identify which measurement tools from which you will get the most benefit.