Beyond Perks: Why Workplace Culture Is the Real Key to Retaining Top Talent

Your company puts in the necessary contributions of time, effort, and money into finding the best talent for their positions, but when those high performing employees start to look elsewhere for work, you may wonder what happened.

How can your team avoid losing top talent? The employee turnover has been forecasted to be 50–75% higher than what companies have previously experienced, the time it takes to fill a position has increased by 18%, and the knowledge and experience that walk out the door when employees leave is irreplaceable. What can be done to retain more of the talent your company invested valuable resources and training into?

Companies are starting to debunk the myth that retention is about benefits alone, and more about how values, leadership and work environment play a significant role. Some of the leading factors contributing towards a person deciding to leave their job includes organizational culture, training opportunities, and leadership effectiveness. 

Leadership: Effectiveness with employee growth and how unconstrained careers lead to higher employee retention.   

A Gartner report found that only one-third of the 65% of employees reconsidering their roles thought internal opportunities were part of their solution. This limited awareness of roles and perceived lack of support from managers has led many to see leaving to grow professionally is easier than staying to squiggle — that is, change roles and develop in different directions within the same company. 

Harvard Business Review breaks down this employee retention idea into three steps for managers to follow: 

• First: shift the focus of career conversations from promotion to progression and developing in different directions. Where employees are aware of opportunities and training advancements in other areas of the company that are available to them. 
• Second: create a culture and structure that supports career experiments. Managers work together to create career experiments across the company, which encourages employees to have new experiences and try out opportunities that can involve a less formal or drawn out application to a new internal role. Through these experimental outcomes, employees can see how companies have invested in helping them stay, and organizations can utilize the growth potential of their retained employees. 
• Third: reward managers for retaining people (and their potential) not only for their own teams but across the entire organization2. This encourages managers and employees to have high-quality career conversations with the company goals in mind, and not just individual goals or metrics. 

Employees are given permission to be curious about where their career can take them with the practical support of leadership to make the progress happen. What makes a top performer great is that they strive to do the best work they can, and have the drive to continually advance within their careers. When managers are enabled to support employee growth beyond their teams, and employees are encouraged in career development within the company as a whole, the chances of top talent choosing to stick around increases. 

Environment: The importance of workplace culture and values. 

To encourage employee engagement, a positive work environment is essential. As is a culture of trust and support, ensuring employees are comfortable sharing concerns, ideas, and feedback. A great work environment promotes open communication, recognizing and celebrating achievements, and providing opportunities for collaboration and teamwork. Culture Partners share some ways a company can create a healthy work environment. 

• Work-Life Balance: The demand for a flexible schedule has surged, with 45% of European companies enabling workers to work remotely for up to three days each week. Remote work options, flexible hours or work arrangements implemented by organizations help employees manage their personal and professional responsibilities with more ease. This flexibility can reduce stress, leading to higher levels of engagement and increased job satisfaction. Retention is expanding to include aspects like mental well-being, as companies realize the link between quality work and worker health. 
• Diversity and Inclusion: Diversity training programs, inclusive hiring practices, and employee resource groups can help everyone feel that their unique contributions are recognized and respected. Organizations should strive to create a workplace where employees with different perspectives and backgrounds feel included and valued. Employees are more likely to be engaged when the company shows this level of care and recognition to the broad range of perspectives they offer to an innovative culture. Creating a supportive and inclusive environment encourages a culture where employees feel motivated to contribute to the organizational goals. 
• Recognizing and Rewarding Employee Efforts: A good workplace culture emphasizes reward and fosters engagement and effort within your employees, rather than overemphasizing punishment. Companies can significantly impact their engagement levels by regularly acknowledging and appreciating employee’s hard work by performance-based bonuses, recognition programs, or even simple acts of appreciation on a thank-you note or public recognition. Frequent celebrations of milestones, personalized rewards, and recognition has enhanced engagement and retention. 

Is your organization ready to identify and tackle the core reasons why employees choose to stay or leave?

Leading in today’s ever evolving world can be difficult, and you don’t have to do it alone. If you would like to learn more about leadership development, emotional intelligence training, team building, professional coaching, or strategy planning sessions, let’s talk. Contact us for a free consultation by clicking this link: Innovative Connections or calling us at 970-279-3330.

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