How to retain talent under the new workplace paradigm?
Copyright by Stephan Klaschka 2010-2024
From my series on how to build a successful BRG.1
Many of us still grew up with a clear understanding of how ‘work’ and ‘careers’ work: As an employee, you could generally rely on job security and a pension guarantee for your loyalty and obedience to the employer. Practically, the organization ‘owned’ a human asset in a voluntary symbiosis that would end with retirement.
This paradigm changed fundamentally and even more so in our turbulent and globalized economy. Since my work focused on employee retention and engagement, let's see what has changed and how it affects employee retention.
The ‘old deal’ is gone for good
When it comes to employment today, employees understand that they stand alone (though this rough awakening may have come only recently to the more established generations). Organizations hire people for their specific skills and only as long as they need them. They then move on to hire someone else for the next task or phase of work.
This may well be the reason that talent acquisition is often valued higher on more focused on than talent retention. However, this approach also comes with losses through attrition and it may not make the best use of the added value that an individual can give the organization over time through learning, personal growth, developing networks, and gaining experience.
One way or another, the old paradigm no longer holds true. And the younger generations streaming into the working world have not even experienced it to start with, so don’t expect them to respect and live by the outdated rules!
One-dimensional career paths are out
Under the old paradigm, career paths were fixed and oriented ‘upward’ following a pre-defined and somewhat linear course of advancement in the position line-up. Deviations from the laid-out career model were the rare exceptions.
More likely, an employee had to leave the organization to break out of the scheme to
seek growth in a new or a different dimension of interest,
apply newly acquired or dormant skills, or
make ends meet along with their personal needs.
There was not much room to move sideways out of the fixed career track slot and up into another career avenue of their choice.
While the fixed career model made it easy for HR and management in the past, it neglects the potential of the individual employee who can evolve and grow, who may change interests, and who may seek new challenges outside their immediate or next-up job description.
Retention is more than offering money!
Employers who wish to retain their precious talent need to offer more than a paycheck and blanket perks ‑ but this does not mean necessarily that they have to spend more money. A competitive salary is expected, of course, but not the #1 driver. Key drivers for the new workforce are career opportunities and customized benefits – money follows.
What today’s workforce is looking for are choices: flexible career paths that broaden the options and offer development opportunities instead of narrowing them down. They want to take control and influence where they are heading in a multi-dimensional space of opportunities and receive recognition for their achievements – empower them. Set clear goals and allow employees to experiment and learn on the way – don’t micro-manage them.
It becomes crucial for every employee to be ‘employable’ meaning to stay attractive for the current employer as well as the next employer under the new paradigm.
When it comes to benefits the time is over for one-size-fits-all perks! Consider non-monetary benefits that cater to the individual’s needs, preferences, and independence: Non-monetary benefits may range from education opportunities over a free trip with family or friends as an incentive to flexibility along the work schedule and venue including remote working options.
This flexibility and consideration of an individual’s lifestyle is becoming even more important since GenY entertains closer social ties to families and friends than GenX. Networking and leveraging personal connections come naturally to more recent workforce generations and extend seamlessly also in their professional world.
Shared values, inclusion, and belonging
Employees increasingly choose employers by their shared values and reflections of beliefs.
Does your employer talk the talk and also walk the walk? Management tends to rely on communication channels to communicate to their employees that are derived from marketing. These channels were originally developed to promote products to consumers through messages broadcasted one-way in a propaganda-like fashion. This practice was extended using social media channels of sorts but still follows the traditions of the old paradigm. It also does not make use of the potential associated with the supposed ‘social’ aspect, which is the power engine behind the social media boom.
Give it a reality check! - If your company has a Twitter-X account (or another messaging channel of some sort), for example, does your company account have only followers but follows nobody else? Here we are back to broadcasting!
If your company follows others, does it genuinely connect and communicate with its employees as well as with people outside the company? Does it engage in open discussions and have procedures in place to consider feedback and learn from it?
How many managers and companies truly use social media tools to their full breadth as a two-way street of communication?
Transparency for talent retention
Retention does not have to be ‘rocket science’ even when the work paradigm changes.
What it takes is a degree of honesty and respect from an organization to treat employees fair and to help them stay ‘employable’. Authentic and open communication goes both ways and forms the basis for trust, employee inclusion, engagement, and belonging that result in employee satisfaction, innovative creativity, and retention.
There is no need to fear transparency and open communication for an organization - failing to do so though is harmful to the organization’s reputation with word spreading fast and employees avoiding workplaces that do not live up to high standards and authenticity.
Stay tuned for my next post on: Fear of change?
From my series on how to build a successful BRG (=Business Resource Group) group, i.e. a business-focused ERG (=Employee Resource Group) first published on OrgChanger.com.