Retention is primarily about pay, right? Wrong.
Mythbusting retention reveals that organisations must go beyond salary considerations to create an environment that fosters loyalty, growth, and satisfaction among their workforce. While competitive compensation is undeniably essential, we’re going to debunk this misconception with the top 3 aspects of retention.
Before diving into these, it’s important to recognise that these aspects mirror the key drivers of EVPs (Employer Value Propositions), which are VITAL HR and business strategies employers need to prioritise – and the need is urgent. Companies without a strong and compelling Employee Value Proposition (EVP) will succumb to the global talent crunch. This crisis is projected to result in a staggering $8.5 trillion in unrealised global revenue by 2030, highlighting the severity of the talent shortage.
Now PNG is its own economy but as a business leader or HR professional you must ask yourself the question ‘how can I retain and develop my best staff so that we can be competitive as possible?’. While a global crisis which will impact other countries more than others, the deficit will certainly reach the shores of the PNG as the reliance of international expatriate talent will impact the productivity and profitability within just about every industry. In fact, our Director, Kristine Berry, among other industry leaders was recently interviewed by PNG Business Advantage on this exact ‘War on Talent’ crisis.
So, what are our three top aspects of retention?
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Professional growth and development:
We recently conducted a poll to our connexions and the results supporting the importance of growth and development were staggering. 50% of respondents voted that Career Development and Training were the most significant motivator to joining a new company. Increased salary and benefits almost tied with Improved culture with around 20% of respondents respectively voting for each. This is a commonly supported statistic. Training and Development was the top motivator to move in our retention statistics reported in our 2022/2023 PNG Salary Guide. Organisations that invest in training programs, mentorship opportunities, and clear career paths will foster a greater employee loyalty and engagement over competitors.
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Work environment and Company Culture
A study by MIT said poor work cultures were 10x more likely to predict resignations than pay. Insights into our poll also showed that without a supportive, respectful and inclusive culture, the effects of professional growth and development can be hindered. Culture is a broad aspect which encompasses many factors. Firstly, a healthy company culture that aligns with employees’ values and fosters strong relationships among colleagues will enhance job satisfaction and loyalty. Secondly, a strong culture is one where there are open and transparent communication channels between all levels of management and employees which builds a strong foundation of trust and cultivates a sense of belonging. Finally, a supportive culture should recognise the evolving needs of employees and focuses on a work-life balance which harmonises flexibility.
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Leadership and Management
Strong leadership and effective management combine points one and two. Effective leadership plays a critical role in employee retention. Strong leaders who inspire, support, and provide guidance are more likely to retain talented individuals. Leaders who promote a positive work environment, encourage employee development, and address concerns proactively can contribute to high retention rates. According to a study conducted by Gallup, employees who feel engaged and supported by their leaders are 59% less likely to consider seeking a new job in the next 12 months. This is an important statistic to compare to the insights from our 2022/2023 PNG Salary Guide, which reported that 50% of respondents were either extremely likely, or likely, to change jobs within 12 months.
Imagine you could provide these three factors to your brightest, most ambitious people?
Imagine you could support and empower managers provide these at every level in your business?
That would be a Talent Management Strategy to which retention is an output of.
To learn more about Talent Management Strategies, visit our website page. Alternatively, if this article has you considering your own retention plans and you wish to gain more clarity on how retention can be prioritised and deployed throughout your business, get in touch with us today!