In the dynamic landscape of the modern workplace, the traditional approach to employee retention is undergoing a significant transformation. Gone are the days when employees sought lifelong commitment to a single company. Today’s workforce is characterised by mobility, with employees actively seeking diverse experiences and opportunities across different organisations. In this evolving paradigm, employers need to change their focus from fretting over retention rates to leveraging the value employees bring for the time they are at the company and actively developing their skills while they are part of the team.

The Rise of Job Mobility:

In recent years, job-hopping has become the norm rather than the exception. Young professionals in particular are more inclined to explore different industries, roles, and work cultures; more Gen Z and Millennial workers plan to quit their jobs than any other generation¹. Rather than resisting this trend, employers must ask themselves a different question; how can I better understand the individual in order to maximise their contribution to my business and our clients, while they are here?

Creating Value in Every Interaction:

Instead of fixating on how to retain employees for the long term, employers should concentrate on maximising the value gained from each employee during their tenure. This involves a gaining a deeper understanding of the person they are hiring, and fast. Leaders must place a higher importance on understanding the motivation of the individuals they have in their team so they can target development and create a pathway that the individual can see is mutually beneficial for both them and the company. 

Tailoring Development Programs:

Investing in employees’ professional development not only enhances their ability to contribute but also increases their loyalty and commitment during their time with the company². Tailored training programs, mentorship initiatives, and opportunities for skill diversification contribute to employees feeling valued, ultimately boosting their engagement and productivity. It’s not enough for this to be a ‘rinse and repeat’ of previous L&D offerings – for newcomers to the workforce, the drive for growth and development stems from a stronger desire to be values-driven and is a key priority for engagement in the workplace³.

Building a Reputation for Career Development:

Employers who prioritise developing their employees earn a reputation as organisations committed to cultivating talent. This positive image becomes a powerful tool for enthusiastic job market entrants, who actively seek out workplaces where they can grow and evolve. A focus on value creation over retention enables companies to position themselves as leaders in nurturing and advancing their employees’ careers. Stop thinking about career development being through the lens of retention but one of values and brand. Build a reputation for people leaving your company being excellent joiners at another, and who hold high regard for a values-driven, development-oriented culture. Imagine a culture where employees who leave later ‘boomerang’ back from another firm and do so with broader experience and honed capabilities; this can only lead to positive value creation and a mutually positive experience.

So what?

In a world where employee expectations and job market dynamics are constantly evolving, the traditional notion of retention must give way to a more adaptive and value-centric approach. By actively focusing on extracting value from employees and investing in their development, employers can build a workforce that is not only highly skilled and engaged but also dedicated to the organization’s success. Embracing this shift will not only position companies as attractive employers but also contribute to a more resilient and innovative business environment. You might just find it also improves retention.

1: Castrillon, C. (n.d.). Why Job Hopping Is Going To Continue For The Foreseeable Future. [online] Forbes. Available at: https://www.forbes.com/sites/carolinecastrillon/2023/09/03/why-job-hopping-is-going-to-continue-for-the-foreseeable-future/?sh=30e642c531a7 [Accessed 12 Mar. 2024]

2: http://www.linkedin.com. (n.d.). Unveiling Generation Z’s Workplace Priorities. [online] Available at: https://www.linkedin.com/pulse/unveiling-generation-zs-workplace-priorities-kannen-singelee-jlp9e/ [Accessed 12 Mar. 2024].

3: http://www.kornferry.com. (n.d.). Who is Gen Z: A drive for development. [online] Available at: https://www.kornferry.com/institute/who-is-gen-z-a-drive-for-development.