What makes people stay? 5 things to reflect on for healthy employee retention in 2024

It’s no secret that retaining talent can be a real challenge, especially given the competitive job market we face today. And while offering competitive salaries and attractive benefits might persuade some individuals to stick around, healthy talent requires more than just monetary perks. The good news is that retaining the right talent doesn’t necessarily involve financial investments. In fact, with the right strategy, you might not even need to spend an extra cent.

The keyword here is ‘strategy’, and this involves adopting the right mindset, asking the right questions, and taking the right actions. Of course, what qualifies as “right” might mean different things for different organisations. But before we delve deeper, a fundamental question to ask is: what keeps employees here? This will help you explore efforts that are already working in your organisation, and from there you can work on reinforcing your employee engagement and retention strategy. Starting from a place of strength is always a better place to start.

So if employee retention involves more than competitive salaries and attractive benefits, what can be done to retain talent? Here are 5 aspects you may want to reflect on.

1. Having a clear purpose and values role-modelled by your leaders

Forget the token mission statements plastered on office walls. Simply having a mission statement and values won’t cut it if it’s mere lip service. Authenticity matters; today’s employees expect a level of authenticity that’s deeply ingrained in an organization’s DNA.

So, how does this play out in real life? Your leadership culture! Behind every thriving workplace there are leaders whose behaviours role-model the organisation’s purpose and core values, making them true leaders of that specific organisation, not just any other.

Employees seek organisations where the employee experience and all people-related decisions, authentically reflect the external recruitment efforts – all a reflection on a unique culture – dictated by the organisation’s purpose and values. Ensure all your HR initiatives are aligned.

2. Communicate what is expected from employees in your organisation

Having a clear purpose and values is a tool to support your employees feel like they belong somewhere unique. Ensure to use every employee touchpoint to reinforce this. Impactful communication goes beyond explaining tasks and assigning responsibilities; it involves establishing expectations about what it means to be a leader, or team member within your organisation. Through this, employees can really connect to what you stand for and feel part of this unique community where their individual values reflect the organisation’s values.

Employee onboarding and performance management are great places to start with this. Does onboarding stop at a 1 day orientation filled with administrative information and a couple of slides about your purpose and values?! Reflect on how you get new joiners to really immerse themselves into your organisation’s culture through activities. Performance conversations and/or ‘assessment’ should not only centre around what has been achieved, but also how it can be achieved. What behaviours did the employee engage in that role-modelled the values?

3. Use internal data to tune in to the pulse of your organisation

Tuning into the pulse of your organisation is key. Even if your turnover is low, it's important not to skip this check-in – whether it’s employee surveys, focus groups, or stay interviews. You can’t assume that your loyal employees are necessarily fully engaged and giving their best performance. Their loyalty might be tied to familiarity and comfort, or an unmatched salary. Therefore, it’s essential to dedicate time and effort to gather employee feedback.

A nice an easy measure is the employer net promoter score (eNPS) which measure the likelihood of employees recommending your organisation as a great place to work. Employee advocacy is a great indicator to longevity. Research by the Marketing Advisory Network indicates that when employees share company messages, the reach is 561% greater compared to the same messages shared by the brand’s social channels. This is why employer branding is crucial.

4. Focus on your employee needs

There’s a lot of noise and ‘global’ chatter around what employees want in 2024. Trends are important, but what about shifting focus on understanding what your employees need, and how your organisation can meet those needs while staying true to its core values and purpose? True success in mastering any retention challenges is reached when you know who your target audience really is, and what their actual needs are. By target audience we’re referring to your top performers.

While there are trends to be aware of, such as fair compensation, flexibility and opportunities for career growth, you may find that your top performers would rather have the flexibility to go to the dentist without taking leave, rather than having the ability to work from anywhere at any time. Never assume needs because it’s what ‘the internet’ says.

5. In high turnover, target your root cause

Chances are that high turnover is coming during a specific period, or from a particular team or job family. In these cases, no general wellness programme is going to help! Discover the root cause of where your turnover is coming from and tackle it directly. Especially when the organisation is large, you cannot adopt a generic approach.

Say employees are leaving from a specific team and the root cause is poor leadership. The attention this team and leader need will differ to other teams. Keep focus on this leader and his needs to improve the situation. In turn, this will improve your overall turnover. If the high turnover is with a particular job family, ensure to implement job family-specific initiatives that target the needs of this job family.

Final reflections

Holding onto the right talent in today’s job market is tough, yet understanding it goes beyond offering competitive salaries and perks is a good place to be and for the real work to follow. Taking actions that fit your organisation’s purpose and values while understanding your target audience needs is key to be strategic, and will pay off!