Why Retention is the new Recruitment

Why Retention is the new Recruitment

In the recruitment landscape, there’s a big shift occurring – where the focus is now on retention. Traditionally, businesses poured significant resources into attracting new talent, often neglecting the importance of retaining the valuable employees already within their ranks. However, as businesses wake up to the realities of a competitive job market and the critical role of employee satisfaction in driving success, the spotlight is now focused on retention as a business priority. 

By prioritising retention, companies can enhance various performance metrics such as employee engagement, productivity, revenue and corporate culture. This investment in retention can also serve as a recruiting strategy, as a high-performing workplace becomes more appealing to potential candidates.

As part of this, assessing the quality of hiring is increasingly crucial for companies.  More time is spent ensuring that top talent is secured and there’s a greater focus on internal mobility, enabling them to grow and develop within your business.

According to Amy Schultz, Global Head of Talent Acquisition at Canva, “While traditional metrics like time-to-fill are important, today, leadership is more interested in the quality of our hires and how we measure that.”

Here are some of the benefits of focusing on employee retention:

Cost Considerations

Hiring new employees involves significant costs, including onboarding costs, training expenses, and productivity losses during the learning curve. Research by the Society for Human Resource Management (SHRM), indicates the cost of turnover can range from 50% to 200% of an employee’s annual salary. By focusing on retaining existing talent, organisations can mitigate these costs and allocate resources more efficiently.

Talent Shortages

In some industries, talent shortages are significant. As a result, retaining top performers has become increasingly important for businesses looking to maintain a competitive edge. Losing key talent to competitors can disrupt operations and also innovation and growth. 

Employee Engagement and Productivity

Engaged employees are the driving force behind organisational success. Studies have consistently shown that engaged employees are more productive, innovative, and committed to the goals of the business. Disengaged employees are more likely to underperform, contribute to a toxic work environment and seek opportunities elsewhere. Retention strategies that focus on fostering a positive work culture, providing opportunities for growth and development, and recognise and boost productivity will result in increased retention.

Employer Brand and Reputation

Employees will want to work for a business that has long-term employees – it’s normally a sign that the employees are engaged and happy. Employees are more likely to stay with businesses that are known for treating their workforce well, offering opportunities for growth and development, and fostering a positive work environment. On the other hand, organisations with high turnover rates and poor employee satisfaction scores may struggle to attract qualified candidates and may even face reputational damage. By focusing on retention and investing in employee satisfaction, businesses can enhance their employer brand and position themselves as employers of choice in the eyes of prospective talent.

If you’re keen to learn more about the qualities that attract employees to your business, speak to the Recruitment team at Flexi Personnel.