At the start of 2022, organisations globally were experiencing “The Great Resignation” – a wave of unusually high turnover rates across industries and the world. Research from Gartner revealed that organisations may face turnover rates as high as 24% in 2022 and the years to come, compared to pre-pandemic levels of 20%. To manage the influx of resignations, organisations are ramping up their employee retention strategies.
However, employee retention strategies today are no longer just about a highly-competitive compensation package or generous employee perks. Here are 4 trends that are reshaping the way organisations today think when designing their employee retention packages.
Flexible work arrangements
The COVID-19 pandemic has accelerated the adoption of remote or hybrid work arrangement among organisations. And organisations who are unable to offer this type of flexible work arrangements are likely to lose out in the talent competition. With the increased adoption of hybrid work arrangements, this also means that the traditional 9 to 5 work schedule no longer works for all employees. Employees today seek flexibility in terms of their work schedule, be it whether they are working in the office or from home. Ultimately, so long as quality work is produced, it does not matter where or how it gets done – that is the new mindset to take in today’s workforce.
Customised compensation packages
Compensation still remains one of the biggest contributing factors in retaining employees. Compensation packages should be tailored for each specific employee and take into account all factors such as job role, senority, skills sets and qualifications. Concurrently, organisations should conduct benchmarking exercises annually to ensure that employees’ compensation packages are in line with the internal pay philosophy and market pay levels. A competitive compensation package is crucial in attracting and retaining key talents.
Professional development opportunities
With the constant evolution of roles and technological changes, employees today are consistently upskilling and cross-skilling. Progressing up the career ladder is no longer the sole priority of employees today. In fact, employees today look towards being a T-shaped individual, someone who has strong knowledge across various domains and deep specialised knowledge of a selected vertical of choice. Hence, professional development opportunities are highly sought after by employees and potential candidates. Employees today also look for opportunities to move upwards and laterally in order to broaden their experience, and make them a more valuable asset to future employers.
Strong diversity, equity, and inclusion (DEI) culture
DEI has increasingly been a key focus for HR leaders in recent years. According to Gartner research, the number of HR leaders that identified DEI efforts as top priority was 1.8 times higher in 2020 than 2019. DEI can cover a broad range of topics, including gender equity, pay equity, and pay transparency. In fact, various countries have introduced legislation and laws to cover these DEI issues. For example, Norway has a law relating to equality and prohibits against discrimination. Top talents today value an organisation with strong DEI culture as it fosters inclusion, which ultimately breeds a highly engaged workforce.