Great Lakes Wire

Employee turnover remains a significant concern for businesses, as it can lead to substantial costs and risks. A recent analysis by The Conference Board underscores the importance of investing in talent retention to not only reduce these costs but also enhance a company's competitiveness.

Diana Scott, Leader of the Human Capital Center at The Conference Board, stated, “Making employee retention a staple of your talent strategy can provide a competitive edge – preserving institutional knowledge, cultivating a pipeline of future leaders, and increasing employee engagement. Doing so will save organizations a lot of the time and money they currently spend on attracting talent.”

The analysis draws from previous surveys and studies conducted by The Conference Board and includes two reports focusing on the significance of retention and strategies to achieve it. Additionally, a turnover calculator was developed to highlight the true cost of turnover for companies. The study identifies four key drivers of retention:

1. **Workplace Flexibility**: Companies offering more flexibility see higher retention rates. Employers enforcing on-site work policies face greater challenges in retaining employees compared to those with flexible policies. Nearly half (45%) of employers enforcing on-site work report retention issues, while only 15% with flexible policies do. Workplace flexibility ranks second only to competitive salary among valued benefits.

2. **Growth and Development**: Opportunities for growth are crucial for employee retention. Over half of respondents indicated they would likely leave if development opportunities were lacking. Internal talent marketplaces are highlighted as strategic tools for fostering growth by providing visibility into career paths and development opportunities.

3. **Compensation and Benefits**: Competitive reward packages are essential for motivating employees and fostering loyalty. Human capital leaders plan to refine compensation strategies this year through promotions, internal pay equity, and skill-based raises. Transparency in pay practices is vital for maintaining trust and fairness.

4. **Leadership and Culture**: Leadership plays a pivotal role in shaping workplace culture, which is highly valued by employees. Initiatives such as onboarding programs, well-being programs linked to retention benefits, and stay interviews can nurture a culture of care, value, and belonging.

Robin Erickson, PhD, Head of Human Capital Research at The Conference Board, commented on the findings: “While compensation and job security are critical factors in retention, workers today are more focused on respect, meaningful work, career growth, flexibility, and alignment with organizational values. Employers who focus on these areas have happier employees and higher retention.”

The insights provided by this analysis aim to guide organizations in implementing effective retention strategies that align with current workforce priorities.