Ten years ago, there were 10 applicants for every job opening.
Today, there are, on average, 10 jobs for every applicant. (No) thanks to the Great Resignation.
In case you’re unfamiliar with the term, the Great Resignation is a current phenomenon where people are leaving their jobs in droves. Because of the global pandemic, employees are prioritising their jobs, careers, and personal goals differently.
For some people, this means leaving the traditional 9 to 5 job for a more flexible WFH arrangement. Others took the opportunity to start their own companies instead of working for one.
As a result, we’re experiencing a widespread talent labor shortage, which requires immediate attention and solutions.
The Why’s and How’s of Retention as a Solution
Hiring the best and skilled employees isn’t enough. Not if you can’t hold on to them. Hence, if you truly want to win the talent war, you have to up the ante on your employee retention.
In a study, CEOs shared that they consider their people as the most integral piece of the puzzle. A whopping 76 percent of top executives believe that increasing their head count is a must, especially as a company grows.
However, you’ll need to stabilise your current number first. But how?
Here are four ways to go about it:
Address Current Compensation and Benefits
Everyone is looking to hire because everyone is losing people. This is what’s happening to many businesses. And it can happen to you too. So if you want to stabilise your headcount, make hiring and retaining a top priority.
The best way to do that is to offer competitive salary packages in the form of cash bonuses, salary adjustments, and promotions.
The last thing you want is a talented employee quitting over insufficient compensation, especially when you can do something about it.
While it may seem like an extra expense, consider how much a key player brings into the company. There are simply some people you cannot afford to lose.
Address Basic Needs
Toxic company culture is another reason why many employees leave. However, cultivating healthy company culture starts at the most basic level, especially in a distributed team.
For example, do you provide your IT workers with updated software? Do you give your graphic designer access to the tools they need to do their jobs?
Equipping your remote workers with everything they need to do their jobs well is critical. Otherwise, they’ll feel ignored and demotivated – leading them to seek better support and opportunities elsewhere.
Conduct “Stay Interviews”
Most of us are all-too-familiar with exit interviews. Once you’re in one, it’s likely too late.
Enter the “stay interview.” This increasingly popular retention tool probes current employees about their goals and desired career trajectory. Just to see if you’re both on the right track (or if you’ll need to hire someone else for better alignment).
This approach also helps both parties identify and address key opportunities and pain points, if any. Basically, it identifies and helps address problems early on.
Invest in Leaders
There’s a saying that claims that employees leave mostly because of their managers. Even a competitive salary package or regular “stay” interviews will be futile if your employees don’t like their direct supervisors.
By investing in management or leadership development, you empower managers with autonomy and (hopefully) help them develop empathy towards their subordinates.
Or better yet, pay attention to the employees who work well with their colleagues and fast-track them onto a leadership career path.
While hiring might continue to be a challenge for the foreseeable future, retaining your best employees doesn’t have to be.
Remote Staff has been helping Australian SMEs and entrepreneurs like you get their businesses off the ground with skilled remote workers from the Philippines for the last 15 years and counting. Aside from hiring, we also provide constant support throughout the working relationship to smooth any ruffled feathers and help you keep the people worth keeping.
Call us today or schedule a call back and let’s get started.
