HR strategies to retain talent

HR strategies to retain talent
Employee retention is unavoidable, but firms that identify the issue, address the reasons why individuals leave, and take the right action, can develop successful talent retention strategies.

Ever since the pandemic, the working culture of the era has changed and necessitated an innovative approach to hang on to the employees or talents that are working in the organization. Employees have an essential role in the development of the organization. As employees leave their current employers, the tidal wave of resignation refuses to subside. Attrition rates in various businesses, particularly in the IT sector, have reached new highs in recent quarters.

In this scenario, HR leaders are pushing to keep their best-performing personnel while constantly hunting for replacements due to ever-increasing demand. Organizations all across the world are losing top people to better-paying, more engaged, and culturally appealing companies. As employees exit organizations, the subject of how the business will retain talent will arise.

According to Deloitte, the average rate of attrition pan-India has surged from 15.8 percent in 2020 to 19.7 percent in 2021, with voluntary attrition increasing by more than 5% between 2020 and 2021. To combat the “great resignation,” businesses are implementing retention methods such as market corrections, higher pay raises, and one-time incentives. More than 90% of businesses intend to give bonuses in 2022. Four out of ten firms intend to pay more than 100% of the goal bonus. Organizations are attempting to improve employee retention through work enrichment, providing flexible working options and staff upskilling, in addition to financial incentives and awards.

Begin the retention process by recruiting

With the changing landscape, businesses are innovating and providing a plethora of perks to attract talent, but this is not the case for retaining talent within the firm. Most businesses, on the other hand, fail to recognize that retention begins with recruitment, from the moment an application is received until the employee is successfully invaded.

Also Read: Great Resignation likely to continue, One in five may change jobs: PwC Survey

Initially, HR teams must find candidates who are culturally compatible with the company and eager to stay. Furthermore, the firm should provide an exceptional onboarding experience for the selected candidates to make that great first impression. Blending employees into the company culture, educating them on their responsibilities, and assisting them in developing important relationships can all contribute to a positive onboarding experience.

Importance of a positive organizational culture

Employees spend approximately half their day at work, so having a positive and balanced work culture is essential. Employees should be able to rely on strong and approachable leadership, teamwork, diversity and inclusion, strong ethical beliefs and conduct, and an active incentive system as the cornerstones of pleasant work culture. Employee performance, efficiency, enthusiasm, and even retention benefit from this.

Additionally, the perks and benefits go a long way to differentiate one organization from another, otherwise, it all boils down to the salary game. According to Statista, salaries in India increased by 8% in 2021. Furthermore, the wage increase by the end of 2022 was predicted to exceed 9%, preserving India’s status as the region’s biggest salary increase forecaster. As of 2022, the high-tech, consumer products, and retail sectors were predicted to have the largest salary increases in the country.

In this scenario, HR leaders are pushing to keep their best-performing personnel while constantly hunting for replacements due to ever-increasing demand. Organizations all across the world are losing top people to better-paying, more engaged, and culturally appealing companies. As employees exit organizations, the subject of how the business will retain talent will arise.

When it comes to talent retention, monetary incentives for staying, recognition for their efforts, and rewards for their results can be competitive differentiators. Bonuses, pay hikes, and health benefits are all examples of incentives. At the same time, performance awards, leadership recognition, corporate gifts, and offering flexible working options can help employees feel rewarded and valued for their efforts.

Provide work options that are flexible

The pandemic has made it clear that flexible work routines are here to stay. Reports from renowned service providers, reveal several findings, including the benefits of “flexible working.” The most intriguing aspect is that more than 80% of Indian workers believe that implementing “flexible working” will reduce commute hours and stress. According to most HR directors, employee fatigue is the primary cause of the attrition rate.

Therefore, organizations should not be afraid to provide flexible working models as more employees seek remote working choices, a hybrid model, and a good work-life balance. Employee productivity, performance, well-being, and retention will all increase as a consequence of flexible working alternatives.

Opportunities for personal and professional development

According to a survey, a large percentage of employees would leave their positions for a company that provides better learning and development opportunities. It is natural for employees to leave a workplace that does not provide opportunities for learning, career advancement, and personal growth. Organizations can demonstrate their dedication to employees’ long-term career pathways by providing learning and development opportunities. This can involve, among other things, training programs, higher education, personal mentorships, and leadership development. As a result, individuals will feel more valued and engaged, and organizations will profit from their improved abilities and productivity.

Final thoughts towards retaining quality talent

As the talent business progresses and becomes even more global, talent retention is becoming a universal challenge that even the most successful organizations are encountering. Employee retention is unavoidable, but firms that identify the issue, address the reasons why individuals leave, and take the right action, can develop successful talent retention strategies. The years after the COVID-19 pandemic outbreak have been difficult for corporations and employees alike. Organizations can reverse talent turnover by offering a healthy work culture, trustworthy leadership, a fair wage and incentive system, constant recognition, development opportunities, and flexible working alternatives.

Nilesh Jahagirdar

VP Marketing at [x]cube LABS

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Nilesh Jahagirdar

VP Marketing at [x]cube LABS

Dec. 2022 Issue

Workplace Frustration
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