We are often tasked with benchmarking facets of a company’s health, and positive employee retention is one of the best ways to drive value for both internal and external stakeholders. For more than four decades, Houghton Financial Partners has designed and implemented customized reports for employee retention strategies, especially during periods of uncertainty and considerable volatility.
Companies that don’t respond to the new workforce mindsets about embracing emerging technology and change in the workplace face real business challenges. Technology is no longer an afterthought and must be a chief concern among the corporate management team. Technology and flexibility lead employee experience and are at the heart of what appeals to both millennial and Gen Z talent bases. This inflection point is even more critical as more Baby Boomers enter retirement, and experienced employees leave the workforce.
How Do You Compete for Talent?
The consuming sprint to find, attract, and secure workforce talent can be daunting. Every company eventually has to build upon its reputation, and employee reviews can be an excellent tool to help your company stand out for potential recruits. As a best practice, there is also great insight to gather when employees leave your team. We have found that interviewing existing employees present a perfect opportunity to gain an unvarnished look into positive and negative feedback that can be used for internal improvements. These efforts help to build a holistic approach to employee engagement and financial wellbeing.
|Internal Factors||External Factors|
|Competitors & Headhunters||Large Retirement Base|
|Disgruntled Employees||Leaving for Better Opportunities|
|No Performance Compensation||Equity Participation|
Attract and Retain the Best and Brightest
In an effort to attract new talent, the organizational “bench” should serve as a pipeline to train and empower employees to succeed and ultimately blossom in their roles. The talent pipeline ultimately creates mobility and flexibility to help empower employee career tracks. To encourage employee engagement, transparent communication channels create environments for internal teams to share knowledge and eliminate hesitancy sharing ideas. Best practices include internal newsletters, employee spotlights, and outward communication messages on social media.
Learning how to accurately identify high potential employees, while successfully implementing a plan for professional development is the best practice to retain high potential talent within your organization.
Engagement and Retention Is The Goal
Retention strategies refer to policies companies follow in order to retain employees and reduce turnover and attrition and ensure employee engagement. The goal is to meet the expectations of employees without losing sight of the company’s goals to ensure maximum return on investment. Creating and reinforcing employee retention strategies not only empowers employees but also helps companies navigate organizational change. The following best practices outline some of the key strategies needed to institute a true organizational shift towards true employee retention goals:
- Define a scalable framework outlining short and long term incentive plans
- Detail key employee traits to identify high potential talent
- Determine strategies for encouraging talent mobility and promoting a culture of retention
- Understand common objections before placing an employee on a high potential track
- Measure employee retention for critical feedback and blind-spot identification
Ted Houghton - President
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