Why Retention is the Biggest Talent Challenge Of 2017
Finding exceptional employees is one thing. Keeping them is another. By focusing only on recruiting, and not making the effort to retain those new employees, a cycle is created where new employees don’t stay long and employers have to recruit yet more employees. Long-term, this over-emphasis on talent attraction and hiring without equal emphasis on development and retention, companies will struggle to maintain sufficient talent levels.
According to LinkedIn’s Global Recruiting Trends 2016, only 32% of global talent leaders view retention as a top priority. This view may be short-sighted as the economy continues to grow and job mobility continues to shrink job longevity. This growth will put even more pressure on organizations to retain the talent they have worked so hard to get over the past years. To successfully navigate this, companies need to invest in the development and retention of their talent in addition to their recruiting efforts.
By 2020, millennials and gen-z will make up 50% of the workforce. According to the US Bureau of Labor and Statistics, the average tenure per job for individuals 18-35 year old is 1.6 years. This means we are not far off from having a majority generation in our workforce that expects to work for a company for less than two years. This generational shift plus the rise in freelance and contract work along with an increase in individuals exploring their entrepreneurial spirit, makes it apparent that development and retention will play a major role in the success growth of a company.
While the factors above illustrate the increasing pressure on companies to keep talent, it doesn’t have to mean continuous external recruitment. Companies that invest as much time and resources in the development of their current talent will be the real winners in the coming years.
Resources: forbes.com; shrm.org