Control turnover and elaborate talent retention strategies in the company are some of the challenges that the human resources area faces. Especially when dealing with professionals from heated sectors like technology.
It is natural that there is a movement in the job market with professionals changing jobs occasionally – whether in search of new challenges or to grow in their careers. However, there is a average talent retention rate considered healthy for companies.
Find out with our guest, Glassdoor, how to calculate the retention rate, the optimal result and strategy tips for talent retention to achieve the ideal scenario!
How to calculate the talent retention rate
The operation to find the retention rate for people in your company is very simple. The first step is discover the turnover.
To calculate the turnover, it is enough to have the data of movement of employees in the period of the analysis and the number of employees in total during that time.
With the information in hand, add the admissions with the dismissals, divide by two and then divide the result of the operation by the total number of people. That done, multiply by 100 to arrive at a percentage value.
For example: if a company had 100 employees and 10 of them left, without any new hires, the turnover rate is 10%.
In another example, if a company had a total of 100 employees in the analysis period, 5 of them left and 5 new employees were hired, the account would be:
(5 + 5) / 2
__________ = x 100
The result for the above operation is 5% turnover.
To find out the talent retention rate in the analysis period, you must look for the complementary number that when adding the turnover, will give 100%. In the example shown above, retention is 95%.
Following this concept, if a company's turnover is 8%, its talent retention rate will be 92%.
Read more: Why many professionals change jobs frequently.
What is the ideal talent retention rate?
Some experts in human Resources indicate that the ideal retention rate should rotate around 95%, but that many factors can affect this number and isolated cases should also be analyzed.
For example: it can be more difficult to retain talent in specific areas (such as technology) and internal facts in each team can affect the employee's bond with the company.
In addition to the internal problems that may arise in the company's dynamics, many external factors, mainly related to the economy, can rock the market and affect the retention of professionals:
- General unemployment rate in the country;
- Rate of new jobs generated in the country;
- National and international situation of the economy;
- Speed of growth of the sector in which your company operates;
- Enhancing the employing brand of competitors.
Talent retention strategies
Of course, many professionals have their own reasons for changing jobs, but efforts on the part of the company can be made to promote employee satisfaction.
Here are some strategies for retaining talent over time:
1. Understand the reason for exits
The first step is understand the reason whereby professionals are leaving their company and migrating to new opportunities. This type of mapping must be done constantly, as members of your team leave the company.
A simple way to implement this and start to understand the more general reasons is with termination interviews. Ask for sincere feedbacks and opinions, with concrete examples, and keep this reported in a document.
With notes from termination interviews, you will be able to identify opportunities for improvement and actions that should be taken to improve your talent retention rate.
2. Offer good compensation, but also things beyond that
Of course good benefits and a satisfactory salary are points that contribute to the valorization of an employer, but these are not the only points that UK residents professionals are considering when looking for new opportunities.
One of researches carried out by Glassdoor revealed that, for 29.6% of professionals, the main reason that makes you want to change jobs is to have a job more connected with your life purpose and your personal desires.
People want to feel that they are doing something for the world. If every company produces something for society, be it a product or service, how does your company awaken this feeling of contribution in each professional of the team?
How does your company communicate its purpose, so that your employees feel connected with the same goal? Consider actions that make these points clearer to your employees.
See too: Employer branding beyond the office: how to engage operational teams style=”font-weight: 400;”>.
3. Communicate growth opportunities
The same research that revealed the insight The previous report also showed the main reason for employees to remain in their companies. This means that some factors can make your current job even more attractive.
It turned out that 25.1% of professionals they want to continue in their companies because they see good opportunities for growth there. Good remuneration and / or benefits comes right after connecting with personal purpose, with 18.4% and 18.5%, respectively.
So, our suggestion is invest in internal growth opportunities, while properly communicating this to all company employees. This efficient communication will help to align the expectations of all members of your team.
find it out 5 HR and recruitment metrics you should keep track of.
4. Work your employer branding well
Many think that investment in employer branding it only serves to attract new employees and that should be a priority only in times of big hires.
The truth is that your employer brand is definitely important at all times in your company, even if the focus of your efforts today is retention and not attractiveness to the market.
Find the strengths of your EVP and turn it all into strategies to build and work with a cohesive employer branding, demonstrating the full value of continuing to work for your company.
A good tip is to start by organizing internal communication pieces that describe the purpose of the company and the advantages of working there.
Read more about employer branding: How to build your employer brand.
Base your strategies on data that translates the perception of its employees about the company, outlining strategies for retaining talents that repair negative points and highlight the positive ones.
To do this, use internal research results and evaluation tools such as the Glassdoor. In this way, you guarantee work that is consistent with the perception of most employees.