Top 3 Reasons Why Organizations Struggle To Retain Top Talents
The employment market is now driven by the supply and demand of skilled employees. Companies all over the world are beginning to look for new ways to improve their business performance, and they are doing this by hiring and retaining the best talents possible.
More and more organizations are aggressively sourcing for top talent in almost all fields of work. But even with an aggressive recruitment drive by companies, it still remains a challenge to find the best talents.
While top talents form an important part of many organizations, only a few know how to retain them. And the irony is that every company wants to have a pool of top talents but only a few know how to do it. In this post, we take a look at the top 3 reasons why organizations fail to retain top talents.
Many organizations struggle to retain top talent. The number 1 reason why is due to micromanagement. Micro management is when a manager gets involved in a subordinate's work frequently, with detailed direction and control, on matters that the subordinate should be responsible for. The net result is that the employee has less autonomy and responsibility.
As an example, suppose you are an engineer and you come up with an idea for a new feature that your organization should implement. You write up the requirements and submit them to your boss. He approves them and tells you exactly how he wants the feature implemented.
A few weeks later the feature is complete. The feature doesn’t work as it was supposed to, because of all the extra constraints imposed by your boss's oversight. You are frustrated because you didn't get to implement it your way (the right way), so you start looking for another job where you can have more freedom to do things "your way."
The difference between micromanagement and healthy oversight is not always clear but it can be identified by how it makes people feel. If your employees feel stressed and underappreciated, then chances are that you are micro-managing them.
Lack Of Enabling Work Environment
Many organizations struggle to retain top talent as a result of their inability to create an enabling environment that is free of toxicity and allows room for innovation, flexibility, and forward-thinking.
It is very important to understand that a toxic work environment is not just a negative place to work. It may affect the morale of every worker and cause them to leave because they are unhappy, unfulfilled, and uninspired.
Despite the fact that employees recognize that their work environment has a direct impact on their happiness, productivity, and the quality of their work, many companies spend little time creating an environment that nurtures innovation and makes employees feel empowered.
Employee compensation is a major cost center for most companies. But one that can't be overlooked. The right compensation plan, one that's competitive, cost-effective, and tied to performance, can help your company attract, retain and motivate the talent you need to succeed.
In fact, total compensation plays an important role in how the organization is perceived by its employees. In addition to base pay or salary, total compensation may include overtime pay, tips, commissions and bonuses, health insurance benefits, sick leave, and other opportunities.
In addition to overall compensation levels, employees are also interested in the structure of their pay. For example, they want to know how much they will earn on an annual basis, whether they will receive regular raises or cost-of-living adjustments (COLAs), what opportunities exist for bonuses or overtime earnings and whether they have opportunities to earn additional pay through merit increases or promotions. Employees also consider other components of compensation such as job security and the types of benefits offered by the employer when choosing where to work.
To sum it up, when organizations begin to make processes more efficient, they will see their ability to retain top talents. Similar to the old adage that it takes money to make money, it takes good processes to make better processes.