Navigating the complex issue of employee retention

Employee retention is a top concern for human resources professionals this year, according to a recent report.

Reducing employee turnover (58.2%) is the top priority, followed by improving employee satisfaction and engagement (54.7%).

Attracting talent (50.7%) came in third, according to the survey by cloud business management solution provider Cegid.

This is a change from the two years ago, when recruiting talent was the top HR priority, says Marc-Andre Nataf, general manager of Cegid North America, in talking with HRD Canada.

“I don't know if [workers] are less satisfied than they used to be,” says Nataf. “To tell you the truth, I think they are expressing it more clearly. That's probably one thing; we are [as employers] more inquiring about that also within companies, especially with tools that have come on the market.”

Only 22% of employees globally are satisfied with their job, according to a previous report from the Arbinger Institute.

The complex matter of employee retention

However, 30% of employers lack a plan to tackle employee retention, finds Cegid.

That’s because employee retention is a complex matter with different levels.

“It's not like there is a button [to press] about employee retention and then you will retain employees,” says Nataf.

The first level of retention is pay and benefits, he says. “If you're not at par [with other employers], it's pretty difficult to compete now in the market.”

More than eight in 10 (81%) Canadian professionals are on the hunt for new job opportunities this year, driven by the quest for better pay, according to a recent report from Robert Walters.

The second level of retention is developing workers’ skills and competencies, says Nataf, and employers should answer the following questions:

• Are you able to identify the necessary skills and competencies that you need for your business, but also that your employees need to increase their employability in the labour market? 
• Once you've identified those skills and competencies, do you have the systems necessary to help employers work and improve on them? Do you have the proper approach and processes to train them to get the skills and competencies?
• Are you able to provide a clear path to career progression to employees? 

“Identifying skills training for people, working on a succession plan — this is a lot of work,” he says. “So probably when we see that companies are less prepared [for employee retention], it's probably because of a lot of aspects.”

While some employers may be addressing parts of this equation, they do not always cover every aspect, says Nataf.

Over a quarter (28%) of Canadian employers expect employee turnover to increase this year, according to a recent report from Express Employment Professionals.

Best practices to improve employee retention

To improve employee retention, HR professionals should engage their teams in conversation and identify things that can be automated, says Nataf.

HR teams should also assess and measure “the quality of life at work, the level of stress” that employees face, he says, and analyze the data they gather, propose solutions to these issues and then follow it up with action plans.

Lastly, employers must train workers to increase their skills and competence, he says.

Forbes Advisor contributor Chauncey Crail also shares the following employee retention tips for employers:

• Offer competitive base salaries or hourly wages.
• Let your employees work from home.
• Provide flexible working schedules and reduced workdays.
• Encourage and promote work-life balance.
• Recognize and reward employees for their work.
• Create a culture that employees want to be a part of.
• Build employee engagement.
• Reduce employee burnout.
• Provide wellness offerings.
• Give other job perks.
• Foster growth and professional development.
• Hire for cultural fit.

Over four in 10 (42%) of workers have already started looking or plan to look for a new job in the first half of 2024, according to a previous Robert Half report.