New report outlines the factors driving retention, engagement at work
Talent retention has emerged as the top priority for HR leaders this year amid "costly" recruitment and onboarding processes, according to a new report.
Findings from Gallagher's US Workforce Trends Report revealed that retaining talent is the top priority for 59% of HR leaders.
"Retaining talent is a central priority for organisations, and for good reason," the report read.
"Experienced employees possess invaluable institutional knowledge essential for business continuity and innovation. Long-term employees also tend to be more productive as they're familiar with the company's processes and culture."
Putting more priority on retention comes as the report found that 65% of employers experienced turnover rates of 10% or higher. Nearly half (47%) also said turnover was at 15% or more.
"Frequent departures can create uncertainty and negatively impact morale," the report read. "Recruiting, hiring, and onboarding new employees is costly."
Using engagement to retain employees
According to the report, keeping employees motivated and connected to their work and the organisation can help retain them and mitigate expenses.
"Employers that focus on enhancing employee engagement can reduce attrition," the report read.
It noted that while engagement levels have remained stable over the past few years, there's a need for renewed action planning and accountability to drive further improvements.
"Notably, a work environment that supports career growth and development has taken the top spot, followed by opportunities for self-improvement," the report read.
Having the confidence in their ability to be successful in the role also emerged as a strong factor in building engagement. It is also the top factor in building retention at work.
The report found that having career growth pathways and appreciation for work effort can also build retention in workplaces.
John Tournet, U.S. CEO of Gallagher's Benefits & HR Consulting Division, also pointed out a "fundamental shift" in what employees value.
"More than ever, trust and overall confidence in leadership is having the biggest impact on employee engagement and ultimately retention," he said in a statement.
This shift is forcing organisations to rethink their strategies in order to retain talent.
"Leaders who fail to adapt and hone their own skills will find themselves in a constant cycle of attrition and recovery, which is no way to compete and grow," the report read.
