Attracting talent is a necessary part of the Human Resources equation… but a small business that is able to retain its most talented employees has the potential to grow into a long-lived, profitable company. On top of our payroll services, our role with many of our partners is working with them on talent retention. See below for the key factors you need to consider to keep your top talent happy and engaged.
As we emerge from the pandemic, the last thing your business needs is turnover. It’s a valid concern, too: Prudential Financial’s March 2021 Pulse of the American Worker Survey indicates that a quarter of all current employees plan to leave their job once things get back to normal. Even more concerning: 58% of those planning to leave their job are Gen X’ers and millennials. Talent drain is never helpful, but youth talent drain can be especially disruptive to the company’s future.
Your Top Talent’s Concerns
- Flexibility with Work Location. Some of your workers will want to continue to work from home permanently; some prefer a hybrid system, and some still want to work exclusively in the office (and want everyone else to, too).
- Career Advancement. Prudential’s survey found that close to 75% of all workers are rethinking their skill sets. Additionally, workers are wary that the potential for advancement for those working from home might be different than in-office workers.
- Pay and Benefits. The pandemic affected everyone financially in one way or another. Now, more than ever, employees are focused on their financial wellness. With the expected upheaval in the jobs market ahead, many employees are evaluating the opportunity to jump ship for a salary raise.
Regional Talent Shift: This “jumping ship” trend is particularly sharp in Northern Virginia. A growing business in Manassas, for example, might find its top performers being recruited by larger firms in Washington, DC that offer “city-level” salaries for fully remote roles. To retain these employees, local firms must ensure their total compensation—including benefits and flexibility—is competitive enough to offset the lure of a distant, high-paying competitor.
Take the time to do an open and honest assessment of where your business stands on all three of these factors before moving on to the next step.
Flight Risk
Is your top talent already halfway out the door? Here are some telltale signs:
- Detachment: evaluate if one of your star workers is suddenly:
- Showing up late to meetings or missing them altogether
- Not reading or responding to their emails promptly
- Disconnecting from their coworkers socially
- Showing less care for their work, and showing less concern for the consequences
- Clock Watching: If a formerly punctual employee starts showing up late, taking longer breaks, and then leaving early, this can be a sign that they’re unhappy with their job or have mentally checked out.
- Bad attitude. This can be a warning sign or a blessing in disguise. An employee with a bad attitude could be unhappy with their role in your company, or they could just be toxic. Knowing how to tell the difference is key.
Keep in mind, a lot is going on in the world right now, and a lot is going on in people’s personal lives. Wait for a pattern to form over time if you are noticing any of the above behavior, and it is not consistent with an employee’s past behavior.
Making a Talent Retention Plan
Unfortunately, there are no one-size-fits-all solutions, and trying to implement a cookie-cutter plan to satisfy one worker can cost you another. You really need to do your homework here, and as always, it pays to know your people. During this transitory time, we recommend our partners conduct internal polls, surveys, discussions, and consultations with their top talent… and to formulate a plan from there. The cost of replacing your best workers can be up to 200% of their salaries and benefits… and the culture and knowledge loss your company suffers as a result of their departure can be even more costly.
Get In Touch
We hope you are able to use this blog as a foundation for your talent retention plan. If you are looking for more help or for a Human Resources or Payroll partner, we’d love to talk to you. Please call us at (804) 364-7220 or use the form below to get in touch. We offer instant, free payroll pricing quotes as well.