Retain and Grow: Retention Strategies for the Modern Workforce

 

October 10, 2024
6 min read

Facing significant talent pressures in an environment of unprecedented technological advancement, employers are challenged to recruit and retain the talent that will help them manage current opportunities and plot long-term growth and succession strategies. The fact is, 60% of organizations struggle to recruit cybersecurity talent, and more than half struggle to retain qualified people.1 A clear-eyed examination of the high cost of replacing top talent reveals significant short and long-term costs and should be enough to make most employers prioritize investment in their employee retention strategies. 

 

A proactive approach to employee retention should emphasize upskilling, stay interviews and performance reviews. In this article, we’ll examine the true costs of losing top talent and how a “stay and grow” retention strategy can tap into the enormous potential of employees’ eagerness to learn new skills and reduce the financial, operational and cultural consequences of employee turnover. 

The Cost of Losing Top Performers

According to Gallup, the cost of replacing an individual employee can range from one-half to two times the employee's annual salary. This is not just about hard costs; losing top performers can disrupt projects, affect team morale and strain customer relationships. Gallup also noted that 52% of employees who leave voluntarily believe their departure could have been prevented by better management or organizational practices. Common reasons for leaving include lack of recognition, poor work-life balance, ineffective leadership and limited career growth opportunities. 

Performance Reviews Can Play an Important Role

Routine performance reviews evaluate how well an employee’s performance aligns with their job description, the company’s goals and their manager’s expectations. When used as part of a comprehensive retention strategy, performance reviews can play an essential role in employees’ career development. Instead of focusing solely on past achievements, these reviews should align with employees' career aspirations and highlight how the company values their future growth. This shift helps create personalized development plans and demonstrates a commitment to employee career advancement.

Stay interviews: Catalysts for meaningful change

Stay interviews, are proactive discussions with current employees to understand their job satisfaction and address potential issues before they lead to resignations. Unlike exit interviews, stay interviews are an excellent opportunity to engage employees, strengthen relationships, and create a positive work environment that encourages long-term commitment.  As the name implies, these are one-to-one conversations with talent who’ve not expressed the desire to leave. They seek to gain a better understanding of how an employee feels about their current role and what your organization may have to change to keep them engaged.

The stay conversation can go a long way toward informing your retention strategies:

-     Assessing Commitment: Identifying employees who may be at risk of leaving, aiding in succession planning. Gain insight into employees’ career aspirations to align development opportunities to drive retention.

 

-     Enhance Work Experience: Uncover ways to improve the work and employee experience by ensuring employees feel heard and supported.

 

-     Building Trust and Loyalty: Stay interviews reflect a clear commitment to the value of employees. The proactive approach ensures employees feel heard and appreciated, increasing their loyalty to the organization and reducing turnover.

If you aren’t sure where to start, DeVryWorks’ Retention Guide provides tips on how to conduct stay conversations and offers 15 sample questions to initiate meaningful discussions, including:

 

-     Do you believe your work has meaning? 

 

-     What have you felt good about accomplishing in your role recently? 

 

-     What motivates and demotivates you? 

Following through on these conversations is crucial to ensure they lead to lasting improvements. By promptly addressing issues identified, you can help enhance employee satisfaction and reinforce mutual trust.

The Benefits of a Strong Retention Strategy

High turnover can potentially harm a company’s reputation and ability to attract and retain talent, especially for mid and senior-level positions. Staff retention strategies have other, less apparent benefits:
 

  • Continuity: Retaining long-term employees preserves valuable organizational knowledge and supports stability through changes.

  • Innovation and creativity: A stable work environment can encourage employees to share new ideas and perspectives.

  • Improved well-being: A supportive workplace fosters personal and professional growth and can enhance overall employee well-being. A policy of mental health inclusion can help make it happen.

  • More consistent client relationships: Long-term employees build strong client bonds, leading to increased customer satisfaction and loyalty.

Tuition Assistance Programs Are More Influential Than Ever

Tuition benefits can be a key component in retaining and growing talent, attracting new employees, and enhancing company reputation. The 2024 Workforce Education Motivations  survey, involving over 1,000 working American adults, shows employees are more interested in advancing with their employers than five years ago. From 2019 to 2024, the percentage of employees significantly influenced by tuition benefits rose by 13 points. More than 80% of workers under 45 expressed interest in returning to school, suggesting a strong link between education access and retention.2 Employees indicated they were more likely to stay with their current employer due to tuition assistance.  The study also found that 64% of potential applicants are more likely to consider companies offering tuition assistance. Additionally, two-thirds of employees hold positive views of employers with tuition benefits, and 67% would view their employer more favorably if such benefits were introduced. 

At DeVry, we can help you develop an inclusive tuition benefits program or help you to reinvigorate one that’s been underutilized as part of a comprehensive talent development strategy.

Implementing Your Stay-and-Grow Strategy

To be effective, the stay-and-grow ideology and its benefits of growth and retention must be woven into the fabric of your company’s culture. Leadership must be actively involved in fostering an environment where employees feel valued and supported. Reevaluate your tuition benefits program to ensure it aligns with current needs and remains a key component of your retention strategy. For guidance, review our Tuition Benefits Policy Checklist to improve compliance and maximize effectiveness. 

By emphasizing upskilling and reskilling, and encouraging a culture of continuous learning, you can address skills gaps, define career paths and enhance employee satisfaction.

Download Our New Retention Guide

The DeVryWorks Retention Guide is brimming with useful information to help you implement employee retention strategies for continued success, including how to make stay interviews a central part of your retention strategy. Download the Guide and begin your company’s stay-and-grow chapter today.

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