An earlier report at the start of 2023, from KPMG revealed that the top challenge for Australian business leaders this year is talent acquisition, retention, and re/upskilling, with 77% of leaders identifying this as their primary concern. This challenge is expected to continue for the next 3-5 years, given the current unemployment rate at a five-decade low, which has made it easier for employees to be selective about their job choices.
Additionally, the cost of staff turnover can be significant and even if employees stay, disengagement can cost companies around 18% of an employee’s annual salary. To retain and engage employees, leaders need to create a working environment that motivates and inspires them.
A recent survey conducted by Deloitte revealed that work-life balance, growth opportunities, feeling valued, and a positive culture are the top reasons why millennials and Gen Zs choose to work for an organisation. To ensure that these factors are present in the workplace, organisations can do the following:
1) Improve leadership capability. Leaders who demonstrate high levels of emotional intelligence and can engage and motivate their employees are critical to creating a positive work environment. Leaders who are self-aware, lead by example, and are adept at unlocking what motivates their employees are more likely to attract, inspire, and retain great people.
2) Improve and maintain organisational culture. Leaders need to understand the culture of their workplace, the behaviours that are rewarded, and those that are not. Organisational culture has a direct impact on a company’s performance.
3) Improve psychological safety. Psychological safety is critical to building a positive culture where employees feel safe enough to learn and make mistakes while stretching beyond their capabilities.
In conclusion, retaining skilled staff members should be a top priority for leaders, given the cost of turnover and disengagement. By focussing on the above 3 points, leaders can create a workplace that attracts, inspires, and retains great people.
Roger Simpson – CEO, The Retail Solution and Author of “The Ultimate Retail Sales Experience” With over 35 years’ industry experience, Roger Simpson is recognized as Australia’s #1 Authority on customer ROI in the retail industry and as a global expert on staff coaching, customer service, and selling skills.
