25 January, 2022
Top 5 actionable employee retention trends in 2022
The past year ushered in a plethora of challenges for companies, from steering a remote workforce to operating during a global pandemic. On the parallel, a new challenge has emerged- employee retention. To reiterate, one in four workers quit their job in 2021 amid the wave of great resignation, a pattern that shows no signs of subsiding in 2022.
The talent scarcity and supply chain crisis is bound to impact the economic outlook over this year as well, coupled with a fundamental and seismic transposition of power between ‘employee’ and ‘employer’ markets. HR in the past was mostly focused on talent acquisition but modern HR professionals have now understood that retaining employees is just as important. The contingency? Employers across the globe need to invest in engagement and upskilling efforts post-haste if they want to avoid a long-term rise in attrition. We have jotted down the Top Five Employee Retention Trends in 2022 that can enable steady recovery from the great resignation and subsequently boost employee retention.
Data-Driven Insights: The Fuel to Charge HR
This is perhaps one of the most cardinal trends your organization should embrace. Quantifiable metrics are the wave of the future, providing affluent insights into strategies that can improve your employee retention efforts. Forrester has vouched for the combined value of people and technology, and the IDC has asserted that by next year, 60% of G2000 businesses will deploy AI- and ML-enabled platforms to support the entire employee life-cycle experience from onboarding through retirement.
With respect to employee retention, data-driven reports and analytics can help in identifying employee pulse, enable performance-based tracking, foster an unbiased rewards & recognition process, and uncover indirect information about the workforce to reveal their idiosyncrasies. Digitalization can therefore, permeate the workplace with profound consequences and result in a healthy employee retention rate.
Embrace Workplace Flexibility: Keep Proximity Bias at Bay
“When it comes to where we work, there will continue to be three main models- centralized workplaces; decentralized, remote organizations; and the hybrid ‘best of both worlds’ approach.” states Forbes. Considering the rapidly changing scenario of the workplace, it is crucial to accompany digitalization with a smooth shift to flexible working models. Proximity bias which entails partiality towards employees working in office and curtails the spirit of work-from-home employees; is highly undesirable and needs to be nipped in the bud to retain your workforce.
A digital employee engagement platform is perhaps one of the best ways to counter this dilemma, as it is a one-stop solution for all major HR facets- rewards, recognition, engagement, nominations, and information. Organization-wide announcements, virtual events, discussion forums, automated recognitions and nominations are a few ways to tackle the proximity bias. Thus, with adequate systems and policies in place to assist the transition to flexible work and its long-term implementation can boost productivity and open the door for amplified employee satisfaction and commitment.
Strong EX Apparatus: Foster L&D and Internal Upward Mobility
A pleasant employee experience is a noteworthy precursor to retention. Research shows that employees in their first year on the job have a 33% turnover rate which is higher than that for tenured employees. Lack of interest in the job itself, lack of benefits, and the desire for a better work-life balance are the major reasons cited for this. This anomaly can be averted by adopting an engagement software with a robust onboarding program.
L&D and internal upward mobility is another principal trend projected to permeate workplaces in 2022. Conducting interdepartmental training, incentivizing L&D sessions, proffering ample chances to get involved in special projects, and make lateral moves to other positions are practical ways to support and nurture a committed workforce. The shift in focus from roles to skills is likely to be a key trend for both organizations and employees in 2022.
Encourage Employee Wellness: The New Era of Humanity
Mental and physical well-being are taking center stage across the globe, and on the professional front, this awakening provides your company with a golden opportunity to foster a culture based on corporate empathy and compassion. Read more about the salient connection between employee wellness and a digital engagement platform to make the most of this gravitating development in 2022.
Suffice to say, organizations that will eliminate the stigmatism around mental health and make employee wellness a top priority are the ones that will attract and retain top talent.
Rewards & Recognition: The Essence of Employee Retention
Employee retention revolves around a robust rewards and recognition framework, which is the central nucleus of employee experience. Needless to say, employees are the conduits through which your business’ vision is realized and if you don’t make consistent efforts to reward, recognize, and retain them, attrition is bound to multiply.
The journey to employee retention starts with assessing the skills and software your organization will need in the next two to five years. The first step should be putting together a cohesive, employee-oriented R&R strategy to create a resilient, flexible, and inclusive organizational culture.
Recognition leads to Retention. To know how, connect with us now!