Yewande Ayowole-Oso | Talent Leader | Anglophone Africa | Schneider Electric | mail me |
It reads like a paragraph from a history book; first there was the Great Resignation, followed by the Great Renegotiation, all in span of three years. The pandemic led to millions of employees resigning their positions monthly.
There were many reasons cited, but according to Pew Research Centre 57% of employees indicated that they did so because they felt disrespected at work.
It is the above research and other perspectives that have led companies to rethink the way they approach their employees. This change in the workplace – over the last four years – that has placed the spotlight on an often-silent trend that has far-reaching impact on the organisation – voluntary attrition.
Unlike involuntary attrition, voluntary attrition in the workplace occurs when employees choose to leave the company of their own accord. Voluntary attrition is often due to reasons such as immigration, career decisions, or deeply personal issues such as health problems or unhappiness caused by toxic work environments.
Retirement attrition is another form of attrition that occurs when employees reach the stage in life for retirement. Internal attrition is a common occurrence when employees change roles and move within the organisation from one department to another.
Talent management
The important question is, how do organisations mitigate voluntary attrition? Talent management is the answer. A key function of talent management is to drive talent retention and reduce the rate of voluntary attrition.
Talent management extends beyond talent attraction, it encompasses every aspect of an employee’s journey within an organisation. Indeed, effective talent management begins during onboarding. This is based on the premise that talent management includes the processes of attracting and training individuals, evaluating their performance, managing their career paths, and retaining it (Heinen and O’Neill, 2004).
For example, Day One Readiness provides an opportunity for employees to receive clear job expectations and on-the-job buddy support. Thereafter, regular check-ins during the first 90 days to ensure a smooth transition through deliberate alignment with organisational goals, culture and values.
Talent management also includes upskilling initiatives. Employees need the right offerings to enhance their competencies. Learning opportunities are tailored to each role, ensuring continuous growth.
The Pew Research Center report reveals that 63% of employees resigned, cited a lack of advancement opportunities as their primary reason for leaving. Creating an actionable path for your employees to grow in their careers effectively improves retention.
Implementing a comprehensive strategy
When conducting performance reviews, keep in mind the career goals of individual employees. Analyse their strengths and skill sets and offer promotions to foster growth. Encourage employees to develop these skills and create a culture where learning is valued.
Also, to benefit both the employee and the organisation, ensure that succession planning remains top of mind. Create a talent pipeline by identifying high-potential employees who could step into key roles. Importantly, cross-train employees to develop a broad skill set and prepare them for future responsibilities.
We’ve implemented a comprehensive talent management strategy that include:
Prioritising well-being in a hybrid work environment
In our hybrid work model, we prioritise employee well-being more than ever. We understand the potential for burnout with multiple calls and engagements across our matrix organisation.
To address this, we ensure employees are aware of our various well-being offerings. Our well-being ambition is to create an environment where employees are empowered to manage their unique lives and work by making the most of their energy. To achieve this, we prioritise employee mental health and encourage smart collaboration. We do this by using our digital workplace guide, which provides collaboration tools and enhances a positive workplace experience.
We aim to create impact by ensuring we have thriving individuals and fostering smart collaboration within teams, allowing them to build their ways of working together based on transparency and trust. This includes embracing all diversities and utilising appropriate technologies. It all starts with respect and fostering an engaging work environment.
We are committed to delivering the best employee experience by providing a safe, inclusive, and attractive culture and workplace, supported by caring leaders. Inclusion and care are embedded in our processes and practices by design.
Robust career development programs for every employee
We believe all employees are talented and we empower our people to grow to their fullest potential, developing new skills and building careers for today and tomorrow.
Our career framework accommodates employee role preferences, communicating that there is room for everyone dedicated to their career growth. Our career development offerings cater to our multigenerational workforce, ensuring that employees can change roles and develop themselves at every stage of their professional journey without needing to leave the company.
Ethics, compliance and safe zones
We create an open and supportive workplace where all employees are empowered to grow to their fullest potential.
Today’s global, digital, and evolving environment requires collaboration with colleagues, partners and customers in an agile, inclusive and trusting manner. We have established a culture of “Speaking Up” as an integral part of building trust. With clear definitions of what is acceptable or not, we ensure every employee understands their rights and the company’s stance on critical issues.
We’ve created safe zones where employees can speak up without fear, reinforcing our commitment to an open, respectful, and supportive workplace.
Inclusivity and diversity
We aspire to be the most inclusive and caring company in the world, by providing equitable opportunities to everyone, everywhere, and ensuring all employees feel uniquely valued and safe to contribute their best.
An employee might choose to leave if the environment doesn’t feel safe or inclusive. We strive to ensure that our systems, policies, and processes make everyone feel welcome and importantly remain excited about their role and contributions.
Related FAQs: Employee turnover and retention
Q: What is employee turnover and why is it important to address?
A: Employee turnover refers to the rate at which employees leave a company, either voluntarily or involuntarily. Addressing employee turnover is crucial because high employee turnover rates can lead to increased training costs, decreased productivity and loss of institutional knowledge. Understanding and managing employee turnover can improve overall employee engagement and retention.
Q: What are some common causes of employee turnover?
A: Common causes of employee turnover include job dissatisfaction, lack of career advancement opportunities, poor management practices, inadequate compensation and work-life balance issues. Identifying these causes can help employers develop strategies to reduce employee turnover rates.
Q: How can employers reduce employee turnover?
A: Employers can reduce employee turnover through various retention strategies such as improving employee engagement, offering competitive benefits, providing opportunities for professional development and fostering a positive workplace culture. Implementing these strategies can help improve employee morale and job satisfaction.
Q: What is the impact of high employee turnover on a business?
A: The impact of high employee turnover can be significant, leading to increased costs related to hiring and training new employees, a decline in team productivity and potential damage to company morale. It may also affect customer satisfaction if there are frequent changes in staff.
Q: What is the difference between voluntary and involuntary turnover?
A: Voluntary turnover occurs when employees choose to leave the organisation, often due to personal or professional reasons. Involuntary turnover, on the other hand, happens when employees are terminated by the employer. Understanding these distinctions is important for developing targeted retention strategies.
Q: What are some effective employee retention strategies?
A: Effective employee retention strategies include providing competitive salaries, recognising and rewarding employee contributions, creating opportunities for career advancement, ensuring a healthy work-life balance and conducting regular employee feedback sessions to address concerns and improve job satisfaction.
Q: How can employee engagement impact turnover rates?
A: Employee engagement plays a critical role in turnover rates. Engaged employees are more likely to be satisfied with their jobs and committed to the organisation, which can lead to lower turnover. Conversely, disengaged employees are more likely to seek other opportunities, resulting in higher employee turnover rates.
Q: What are the best ways to measure employee retention?
A: The best ways to measure employee retention include tracking the employee retention rate, analysing turnover data, conducting exit interviews with departing employees and assessing employee satisfaction through surveys. These metrics can help identify trends and areas for improvement in retention strategies.
Q: How does training new employees relate to employee turnover?
A: Training new employees is essential for reducing turnover. Proper onboarding and training can enhance job satisfaction and employee engagement, making new hires feel more competent and valued. A well-structured training program can significantly reduce the likelihood of voluntary employee turnover.
Q: What is the cost of employee turnover and how can it be minimised?
A: The cost of employee turnover can be substantial, encompassing recruitment expenses, training costs, lost productivity, and the impact on team dynamics. To minimise these costs, employers should focus on retention strategies that promote employee satisfaction, recognition and a supportive work environment.
