6 Strategies for Retaining Top Talent in an Uncertain Job Market

Michele Anderson, SHRM-SCP | Manager, Talent Acquisition Services?

When employers consider their staffing needs, they often prioritize sourcing and recruiting top talent – both integral to a strong workforce. However, in their quest to hire the best and brightest, some employers neglect to prioritize employee retention. This creates a vicious cycle of hiring, onboarding and training, only to have talented employees leave soon after. The result is an organization that never reaches full productivity, spends far too much time and money backfilling open positions, and whose remaining staff struggles to cover the job duties of their former coworkers.

In the past few years, there has been a noticeable shift from a candidate’s market to an employer’s market. This culminated in July when U.S. job openings reached their lowest number in three years. Then in September, the tables turned as job creation surged by 254,000, far surpassing the Dow Jones forecast of 150,000. Caught in between these fluctuations are dissatisfied employees hesitant to face an uncertain job search, and employers hesitant to downsize and regret it later when business soars.

While employers may be hiring more selectively than in the past, top talent remains in demand, and they’ve become more selective too. As companies look to cut hiring costs by assigning increasingly unmanageable workloads, employees are speaking with their feet as they walk out the door. So, what do employers need to do to retain top talent in an uncertain job market? Here are a few suggestions.

Offer Competitive Compensation and Benefits

Though an employer’s market may provide companies with their pick of job seekers eager to reenter the workforce, new hires likely won’t stay long if salaries aren’t competitive. However, small and midsize businesses whose budgets fall short of larger organizations can still remain competitive by offering comprehensive benefits packages.

Employers should conduct compensation benchmarking regularly to ensure salaries align with market rates. In addition, they should offer robust benefits that allow them to compete with or stand out from other companies. While most organizations offer health and retirement benefits, employers that also provide a healthy work-life balance, flexible work options, learning and growth opportunities and a workplace wellness program demonstrate their commitment to employees beyond just providing a paycheck.

Foster a Positive Company Culture

Gone are the days when employees were expected to tolerate a toxic work environment just to earn a living. Top talent knows they have options, and they won’t stay where they’re not happy. Today’s employees want to work for a company that fosters a culture of respect and prioritizes inclusivity and a sense of belonging, not fear and negativity. They want to work hard, have fun while doing it, and be recognized and praised for their accomplishments.

Throughout the pursuit of corporate goals, employers should work to build a cohesive and supportive culture where employees encourage and celebrate one another rather than compete. This can be done by scheduling team-building events, volunteer opportunities, lunch gatherings, after-work happy hours, or even virtual social events to include remote employees. This type of culture turns coworkers into friends, which has been shown to boost employee engagement and business outcomes, including retention efforts.

Provide a Positive Onboarding Experience

A company’s ability to retain its employees starts from the day they’re hired. What is their experience like on their first day, their first week, their first month? What type of introduction do they receive to the organization, its values and its leaders? What type of training do they receive for their new role to set them up for future success? These all contribute to employees’ first impression of the company – one that will last.

How new hires are onboarded is integral to retention rates. A comprehensive onboarding process makes employees feel welcome and valued from day one. It helps them integrate smoothly into the corporate culture, prepares them for their new role and responsibilities, and instills confidence as they start the next stage of their career. This leads to an engaged and loyal workforce that is far more likely to remain with the company for years to come.

Offer a Healthy Work-Life Balance

The workplace of yesteryear expected employees to cater to the needs of employers, and if this meant forgoing a personal life, so be it. Today’s employees aren’t afraid to draw the line between work and personal life, and employers have been forced to adapt. Workers shouldn’t have to miss out on family events, doctors’ appointments or much-needed vacations to prove their value. Furthermore, employees who take ample time off from work are far more engaged and productive than those who are overworked and suffer from burnout.

Employers should offer generous paid time off as part of their benefits plan that allows employees time to rest, recharge and prioritize their mental and physical well-being. In addition, companies should consider offering paid volunteer time each month or quarter for employees to participate in community involvement activities that are important to them. Finally, if possible, employers should offer remote or hybrid work options and flexible hours to accommodate employees’ busy personal schedules. Despite the recent RTO push by some high-profile companies, if employees have worked successfully from home for the past several years and are no longer allowed to do so, many will eventually seek the convenience elsewhere.

Solicit Employee Feedback

Companies that genuinely care about retaining staff should want to know their thoughts and opinions on what the organization is doing well and what needs improvement. However, asking isn’t enough to move the employee retention needle – it requires action. As much as employees may appreciate their employer’s interest in what’s working and what’s not, they will eventually grow frustrated if their feedback never yields positive change. This can counteract retention efforts, as 41% of employees say they have left a job because they didn’t feel employers listened to them.

Surveys, focus groups and retention interviews (or "stay interviews") are all effective methods of gathering feedback. Anonymous surveys that aggregate data can provide deeper insight as employees may be more likely to respond truthfully without fear of retribution. Also, employers should have a plan in place to act upon the feedback they receive and share this with workers. Though changes may take time, communicating openly about a timeline for implementing suggestions will allow employees to feel their voices are heard and help boost engagement levels.

Provide Opportunities for Growth

Top talent is never satisfied remaining stagnant. They want to learn and grow throughout their career. Data has shown that a lack of growth opportunities and career progression is the number-one reason employees quit. Successful employees have clear goals and are focused on the future, not just the present.

Employers must support employees’ career progression by providing them a path to success. This should start early on with conversations about their goals, from the next few months to the next several years. In addition to providing training and development opportunities, employers should offer internal mobility, allowing employees to transition into new roles within the company as they gain knowledge and seek new challenges. Finally, employers should develop succession plans for key roles, providing a roadmap for workers looking to eventually move into these positions and allowing them to start acquiring the necessary skills in advance. By supporting employees’ career growth rather than locking them into one role, employers send the message that they value workers’ talents and contributions, regardless of their position.

As companies grow and build their workforce, they can expect a percentage of employees to leave for any number of reasons. But the more workers they retain, the less they will spend on recruiting, onboarding and training costs, and ultimately, the more profitable and productive they will be. Unlike the urgency of backfilling vacant roles, it can be easy to deprioritize employee retention until it’s too late. However, by keeping retention efforts top of mind and incorporating the above strategies into their employee value proposition, employers can create an environment where workers feel valued, engaged and motivated to stay with the company long-term.

Want more information on developing successful employee retention strategies? Download our free magazine,?The Insperity guide to employee retention. Also, visit Insperity’s career page to learn more about the benefits we offer to attract and retain top talent.