How do we retain talent?

People always join and leave organisations; it is a natural cycle in the workforce. Some employees grow older and retire, while others are job-hopping, never staying with one company for long. Most organisations are aware of these patterns, and research shows that, in general, businesses can benefit from high turnover due to a continuous inflow of creativity, engagement, and expertise. However, certain individuals play a much more significant role in organisational success, and losing them can be detrimental. These key contributors are known as talent. In today’s competitive market for top talent, individuals are no longer competing for job roles; organisations compete to attract and retain these valuable employees. This article explores the reasons why some employees might choose to leave and strategies to keep those individuals.

Since the pandemic, perspectives on the workplace have shifted dramatically. Employees are placing more emphasis on work-life balance and recognising the importance of organisational culture in their overall job satisfaction. As a result, compensation alone is no longer the most powerful tool for employee retention, as it was just a decade ago. Surveys show that employees, especially those in higher income brackets, are increasingly seeking non-monetary rewards and fulfilment in their work. To illustrate this, in 2023 only 10% of employees leave their jobs due to low pay. In contrast, 63% cite a lack of appreciation, 26% are dissatisfied with their organisation's support, and 32% are even willing to accept a pay cut in exchange for more recognition from their leaders. These statistics reveal that the primary drivers of turnover boil down to two core issues: lack of recognition or appreciation and insufficient resources to meet job demands, including career opportunities, a supportive environment, and managing overwhelming expectations.

To overcome these challenges, organisations can adopt various strategies, from implementing gratitude interventions to re-examining current employee responsibilities. The Job Demands-Resources (JDR) Model is a useful framework for understanding this. This model helps organisations balance employee demands with the resources available to help them succeed.

To prevent talent from feeling overwhelmed in their roles, organisations should first analyse the supportive resources available to these employees and compare them with the specific demands of the job. A 360-degree role analysis and one-on-one interviews with the employee can provide invaluable insights. These interviews are crucial because they offer a glimpse into the subjective experiences of individuals, helping leaders better understand the key challenges they face and the resources they most need to overcome them. This approach ensures employees are not only protected from burnout but also stay engaged by experiencing a continuous sense of growth and development.

In addition to aligning job demands with resources, organisations must also pay attention to leadership behaviour. Introducing gratitude training for leaders can significantly enhance the recognition and appreciation they show to talent and employees, fostering a more positive and supportive work environment.

To sum everything up, in today’s competitive job market, retaining talent is more than just about offering competitive salaries. Employees increasingly seek meaningful work, recognition, and a supportive environment. By addressing the key drivers of employee dissatisfaction—lack of recognition and inadequate resources—organisations can create an environment where their most valuable employees feel appreciated, supported, and motivated to stay.