The vast majority of HR leaders have said they face a significant talent retention problem.
A new study by XpertHR and Executive Networks saw 83% of global chief HR officers report they were facing serious issues around retaining enough skilled employees.
In addition, of those surveyed, all CHROs cited “talent” as their top priority, with all respondents agreeing that it has never been more important to keep employees satisfied through what the study termed the ‘great re-evaluation’, to stem the tide of resignations.
Noelle Murphy senior HR expert, XpertHR, said: “The past two years have changed the way we work in profound ways, and HR leaders are under immense pressure to help their organisations re-think what will make employees want to stay.”
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XpertHR found that the top reason for voluntary turnover was employees reporting stress and burnout (almost 20%). Others felt there was a lack of visibility for career advancement and development (19%), which highlights how internal talent mobility is a top factor contributing to talent turnover and retention issues. Unsurprisingly, another top reason for resigning was dissatisfaction over wage levels (18%) and dealing with work-life balance issues (18%).
Data from the survey suggested that having an internal talent marketplace, a platform allowing employees to access learning and development opportunities, reduced turnover. Those who had internal training and clear career paths in place via an internal talent marketplace found had an average turnover rate of 13% in the past year, compared with 19% for those who did not.
CHROs who predicted an increase in budget found that the higher the predicted increase, the lower the turnover rate. For those who reported that their budget would increase by over 20%, their average turnover rate over the previous year was 12%. For those who predicted a budget increase of only 0-9%, the average turnover rate was 17%.
Murphy said HR leaders should request investment to make their organisations more attractive to workers. Success, she said, in many cases “comes down to meeting employee priorities and purpose. Whether it is attracting, hiring, training or retaining talent, HR professionals must make talent their priority if they are to cultivate the most-skilled and best-led companies to gain a competitive edge.
“With many global economies shifting into a recession, pressure is only going to grow for businesses to retain their top talent, who will be vital to navigating the coming years. Now is the time for CHROs to push for investment and change within their business to build a better employee value proposition and culture that meets both employee and business needs.”
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