How to Attract and Keep Talented Employees in a Tight Labor Market

With the unemployment rate at it’s lowest point in more than a decade, many companies are finding it a challenge to attract and keep skilled employees. A thriving jobs market means that employers need to up their game if they want their fair share of the talented workforce. Today, we’re discussing what that means and how companies can become an employer of choice when there are so many choices.

Why Does It Matter When Employees Leave?

The simple answer to this question is that staff turnover is costly. According to Right Management, a talent and career management group, it costs almost three times a worker’s salary to replace them. This cost factor may come as a surprise, but when you consider the cost of severance, recruitment, and lost productivity and opportunities, the price an organization pays soon adds up.

Why Do Workers Leave Their Jobs?

Lee Branham, the author of “Keeping the People,” notes that most employees leave their jobs not because of pay, but because of other factors. Branham states that there are seven main reasons why employees leave a company:
  1. Employees feel devalued and unrecognized
  2. Employees feel the job or workplace is not what they expected
  3. Employees feel stress from being overworked
  4. A mismatch between the job and person
  5. Too little coaching and feedback
  6. Too few growth and advancement opportunities
  7. A loss of trust and confidence in senior leaders

Branham’s research shows that a negative company culture is the main reason why employees look elsewhere for work. The best way to combat this is to work toward fostering positive employee relations and a better working environment.

How Can You Attract Talented Employees?

Nowadays it is more of a challenge for firms to attract talented employees because of growth in the jobs market. During the recession, jobs were hard to come by so businesses didn’t have to try too hard to attract skilled workers, but that has all changed. Firms need to look beyond health insurance, compensation and benefits as a means of attracting the best candidates. Companies now need to offer a career package that includes a career path, opportunities to develop new skills, a comfortable company culture and a better work/life balance.
In addition, a union-free company can attract some of the best talent by promoting its company values. Celebrate the benefits of being a union-free firm. Let job candidates know that you strive for positive employee relations and work hard to promote fairness and equality so that there would be no reason for your employees to seek union representation. With the right focus and a well-thought-out strategy, your company can become an employer of choice..

Once You Attract Talented Employees, How Can You Keep Them?

Start by developing a retention plan. Consider the main factors that contribute to employees leaving and look at what you can do to prevent it from happening. Also, find out why your workers were attracted to the job in the first place, as this might well be the thing that is keeping them there and you could use this information to attract future employees.

Another factor to consider is training opportunities. The chance to develop new skills, achieve goals and acquire a solid understanding of job requirements gives workers a sense of value. So, opportunities for personal growth mustn’t be overlooked.

And while loyalty to a company has long ago become a thing of the past, many of today’s younger top performers do consider corporate social responsibility a major factor in job satisfaction. Millennials want to have pride in their employer, and not only paying attention to your reputation but promoting the company’s values can help retain these workers.