Experts warn of ‘unanticipated’ post-pandemic shift in the psychological contract between employers and employees, which is hitting hiring and working patterns
Half (51 per cent) of HR professionals claim that employee retention is or will be the biggest challenge facing their organisation this year, research has found.
According to Ciphr’s study of 300 UK HR decision makers, this increased to 57 per cent for larger firms (those with 250 employees or more) and dropped to 36 per cent for smaller employers (those with 1 to 49 employees).
The poll also found that nearly half (46 per cent) of respondents believe their company may fall short of meeting employees’ salary expectations, work-life balance and mental health and wellness support.
Hayley Saunders, HR technical consultant at AdviserPlus, told People Management that these findings reveal a “concerning trend, which it is critical to address head-on through manager empowerment and a data-driven approach to addressing the underlying cause of retention issues”.
Saunders added that organisations must obtain a greater understanding of employee sentiment, performance and training needs, as well as spot trends that indicate areas of poor culture.
She further stressed that HR should establish ways to “proactively” address retention concerns. “It’s important to understand what truly motivates employees and build a working environment that develops an emotional commitment between employees and their employers,” she said, adding that open communication and manager support were also essential for enhancing employee retention.
Samantha Mullins, director of Latitude HR, told People Management the survey findings were “not entirely unexpected”. “Pre-pandemic there were indications that joining a company for life was no more, that the next generation was looking for variety in their work, a work-life balance and companies that reflected their values,” she said.
However, she continued: “What perhaps wasn’t anticipated was the shift in the psychological contract with those already in work towards a prioritisation of a work-life balance, especially where and when they do their work, and, when employers stepped up during the pandemic to prioritise support for their employees’ wellbeing, this is now seen as the norm.”
Mullins added that employers were focused on retention rates, but said this was the wrong approach. “Retention may no longer be the best measure if the workforce is naturally more transient; employers should focus their energy on productivity and engagement initiatives,” she said.
According to the poll, more than two in five (45 per cent) organisations anticipated difficulties with recruitment, employee engagement and handling remote and hybrid working expectations.
Other major issues included providing a good employee experience (42 per cent), closing skill gaps (42 per cent), lowering absenteeism (41 per cent) and creating a positive workplace culture (41 per cent).
Claire Williams, chief people and operations officer, at Ciphr, said: “Like it or not, the world of work is changing. Employers need to step up and invest in their people if they want to hire the best talent and then retain them.
“Investing in your people, however, doesn’t necessarily need huge budgets. It does require leaders to invest in a different mindset though. Those that fail to recognise and respond to these challenges will ultimately be left behind.”
She also recommended that HR leaders keep a strategic focus on their employees, saying: “Go back to basics if you need to and overhaul your employee value proposition to ensure that you have considered every aspect of the employee experience.
“Use data from existing employees and recent leavers to understand where there is room for improvement. And do some research into what other organisations are doing well.”
Similarly, Victoria Templeton, HR adviser at WorkNest, told People Management: “How employers communicate with their workforce is key to better understanding people’s concerns and fostering an open culture, where people feel able to speak up will enable leaders to make the right strategic decisions that will reduce staff turnover.”
Instead, businesses should utilise employee engagement surveys, she said, as well as forming employee engagement focus groups and seeking feedback at “both ends of the employment lifecycle”.
“This could be gathering feedback from applicants on what attracted them to the business, or seeking input from those who may be leaving to understand if there may be any areas for improvement,” she said.
Article wriiten by Mahalia Mayne
Culled from people management’s website: Read fully story there.
