Advertisement

4C Strategy To Nurture And Retain Talent Of Today

The cost of employee turnover is not just monetary but can also have a significant impact on productivity, morale, and overall organizational success

?

In today's hyper-competitive business environment, retaining talented employees has become more critical than ever. Organisations must recognize that their most valuable asset is their workforce, and retaining talented employees is crucial for sustained success. The cost of employee turnover is not just monetary but can also have a significant impact on productivity, morale, and overall organisational success.

However, today HR professionals across industries are facing several challenges, and high attrition rate is a key concern. According to World Economic Forum’s Future of Jobs Report 2023 – “companies express skills gaps and talent availability as their greatest barriers to transformation and investing in training as the most promising workforce strategy alongside automation, it is unsurprising that surveyed companies express confidence in their ability to develop their existing workforce and moderate positivity in retaining it.”

Alongside the high attrition rate, HR professionals are also facing the significant challenge of talent shortage which calls for proactive measures to attract and retain talented individuals. A study conducted by Korn Ferry projects a global shortage of over 85 million skilled workers by 2030. If unaddressed, this talent scarcity could potentially lead to unrealised annual revenues amounting to approximately $8.5 trillion in 2030.

One of the critical reasons driving these challenges is the changing expectations of the workforce. Especially since the pandemic, the workforce is seeking more than just competitive compensation. They desire a supportive work environment, ample career growth opportunities, and a healthy work-life balance. Therefore, it becomes crucial for organisations to align their policies and practices with these evolving expectations in order to attract and retain top talent.

To ensure a stable and engaged workforce, here is a 4C-strategy which organisations can adopt to retain their employees.


1. Collective Energy:

Today, businesses are constantly innovating and what was relevant even three years ago, ceases to exist. In such a scenario, it is important for the workforce and workplace to align their collective energy towards meeting desired goals and objectives. If employees see their efforts resulting in business growth and innovation, an automatic value chain is created where employees are motivated to constantly deliver new ideas and results. Internal collaborative and competitive efforts such as hackathons and Warzones have proven to be effective in giving employees an environment that encourages cross-functional and outcome-oriented projects, unlocks synergies by transforming challenges into potential solutions and encourages redesigning workflows. This aligns closely to the management principle of resource-based retention theory which reiterates that employees who feel useful to their companies are most likely to be loyal and feel valuable.


2. Competitive Compensation:

Competitive compensation and benefits continue to be an important contributing factor to retaining talent. Regular benchmarking exercises can help organizations stay aligned with industry standards while HR practitioners continue to innovate an ecosystem that recognizes hard work and commitment. For example, most service companies face the challenge of high attrition in the call-center teams but we were determined to change that at Magicbricks. Over time we have invested in strong rewards and recognition programs like Project Elevate and PACE. These programs not only reward employee contribution through quarterly assessments but also invest in their learning and development ecosystem. As a result, we have observed a significant reduction in attrition rates among our call center teams, estimated to be approximately half of what it was previously.


3. Career Development:

In the past couple of years, one of the biggest changes in the workforce has been the onboarding of a new generation- Gen Z. Gen Zers are radically different from millennials and pay a lot of importance to career development and growth opportunities. Today’s employee looks forward to a T-shaped career growth, where they build deep and specialized knowledge about a vertical of their choice, but at the same time, strong knowledge across a variety of domains. Hence, they hold professional development opportunities in high regard. To woo this young generation of talent, HR professionals (and organizations) can chart out a way to prioritize skill-based hiring over degrees, establish clear career progression paths, mentorship programs, and cross-functional exposure to create a sense of purpose and retain top talent. Magicbricks’ signature development programs like mAscent (for sales professionals) and ABLE (Accelerating Business through Leadership Excellence) provide such foundations of personal and professional development to employees across functions and organizational levels.


4. Culture:

Corporate culture is the focal point that affects employee commitment and engagement in an organization. While every organization plans its own course towards a culture-oriented company, the pandemic accelerated discussions around employee well-being and work-life balance as an important part of the company culture. To become an “employer of choice”, organisations need to create workplaces that are engines of well-being. These could include health and wellness programs and flexible work arrangements. Another important aspect of culture is Diversity, Equity and Inclusion (DEI) which gained a lot of prominence in the context of the great resignation during 2020-21. It has increased internal accountability of HR functions to their employees who are now keeping a close watch on company values and what are demonstrated. This is validated by McKinsey’s research which observed that companies with ethnic and cultural diversity outperform by 36% in profitability. Such conversations clubbed with CEO activism and officiating roles such as Chief Innovation Officer and Chief Wellness Officer are showing a remarkable change in the culture of the organisation and paving way for the next 20 years of corporate culture, globally.

By creating a high-performance environment that suitably rewards talent, organisations can successfully attract and retain top talent, thereby paving the way for sustainable growth and success in the dynamic Indian job market.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house


Tags assigned to this article:

Advertisement

Around The World