15th December 2021
Good morning,
As the Great Resignation prevails, it is clear that the trend of more employees switching employers, caused by post-pandemic burnout and more job vacancies, isn’t set to slow down any time soon.
However, as Laura Baldwin, President at O’Reilly shares, in the next 12 months businesses can develop retention strategies to ensure progress and innovation. This includes appropriate training and tools for employees, productive mentorship, and a clear path for promotion and growth.
Simply raising salaries to satisfy employees is unsustainable for businesses in the long run, Baldwin claims. Now, they should focus on delivering what employees want – meaningful work within value-driven organisations and creating beneficial opportunities for employees.
Please see below for Laura's full comment on what organisations need to do in the year ahead to succeed, and if you’d like any further insights Laura would be more than happy to talk to you.
Thanks,
Kate
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By Laura Baldwin, President at O’Reilly
“The ‘Great Resignation’ has resulted in wage inflation; increased financial compensation as the ultimate weapon in the war for talent. However, fixating on pay alone is incredibly short-sighted
“The problem with focusing on salaries is that it is unsustainable for businesses in the long run, and ultimately does not deliver what employees want — meaningful work within value-driven organisations. A higher paycheck will only keep dissatisfaction from the door for a limited time before the promise of a better opportunity calls.
“Rather than fight for new talent, leaders should prioritise retention. How do employees feel the impact of their work so they are more deeply connected to the wider organisation? Do they have the appropriate training and tools at their disposal to get work done? Are they finding connections and mentorship within their teams? Is there a clear path to promotion or growth within the organisation?
“Developing retention strategies has become even more challenging in the wake of the pandemic. While remote working has delivered the flexibility many crave, onboarding and connecting a distributed workforce is not as easy virtually. As such, recognising and developing talent needs to be central to a company’s mission.
“With ‘The Great Resignation,’ enterprises risk facing an even greater destabilisation. When you start losing institutional knowledge by way of employee turnover, it’s hard to keep business on a continuum and see long-term results. This stifles progress and innovation, and can be debilitating for smaller organisations. The best defense in the war for talent is prioritising meaningful work and opportunities for employees.”