The Great Retention

The war for talent continues as vacancies soar.  Money matters but your principles define why people really join your team and why they stay.  

Fears of a post-furlough rise in unemployment were temporarily abated this week, with the ONS reporting 1.17 million job openings in October – up almost 400,000 from pre-pandemic levels. The unemployment rate fell to 4.3% between July to September and there were 160,000 more workers on payrolls in October than September.

While the real effect of the furlough scheme ending will not be felt for a few months yet, signs of a positive economic recovery are promising.  The bad news for employers: competition for talent is increasing.

The knee-jerk reaction is to increase salaries and present a flurry of new benefits.

Examine the legal industry: in the last six months, stories of ever-increasing salaries for newly qualified solicitors have appeared in the media as international firms fight to attract the best.  Similarly, in other industries, offers of everything from flexible working to subsidises for electric cars lure new staff.  Talk of the ‘great resignation’ further fuels employers’ fears.

Money matters, of course. As do benefits.  And for some, it will be enough to defect.  But if you already offer competitive remuneration, there is not much you can do.  Business continues.  People come. People go. 

Instead, consider what really matters.  According to the Harvard Business Review, 80,000 data points over 20 years told us what people value most at work is: value, purpose, certainty and belonging.

Communicate what your organisation is trying to achieve, how long it will take, and how employees can contribute to engender loyalty, commitment and dedication. Combine that with opportunities to learn new skills, grow professionally and create lasting relationships.

Remain clear about how your organisation is guided by principles as well as profit. In a period increasingly focused on climate change and social inclusion, clearly communicate how your business addresses life's big issues. Therein lies the difference candidates seek. 

Your purpose defines you. Name it, share it and reap the rewards.  Instead of a great resignation, do not be surprised to witness the great retention.