Just five years ago, business magazines routinely published articles with tips on screening an overwhelming number of job applications. Best practices and legal frameworks were often discussed. Software to support this effort was advertised widely. But no more. In fact, when was the last time you saw either?

If you are even remotely like most employers, you know how difficult it is to find good people now. And if you are like most employers, you have probably used – or have considered using – recruiters to help.

Well, your competition is in the same boat. And they are probably actively recruiting as well. You should assume that the best and brightest on your team are in their sights. How will you keep them?

Why Would Someone Quit You?

Let’s set aside natural turnover that comes from people having kids or moving to be closer to family. Also, let’s set aside the unfortunate times when someone needs to be let go of their position.

1.  Lack of Career Advancement Opportunities: Employees often leave due to limited opportunities for growth and development. The Pew Research Center found that the lack of advancement opportunities was tied to low pay as a top reason for quitting​ (U.S. Chamber of Commerce)​​ (Medallia)​. Someone else sees potential for your employee…do they see something you don’t? Are they communicating potential and you aren’t?
2. Poor Work-Life Balance: The struggle to balance work and personal life is a significant factor. The pandemic exacerbated this issue. McKinsey found that many employees now seek roles that offer better flexibility and support for a healthier work-life balance​ (McKinsey & Company)​​ (U.S. Chamber of Commerce)​. How is someone else creatively addressing this for your employee?
3.  Burnout: High levels of stress and burnout have driven many to leave their jobs. Limeade’s survey revealed that 40% of employees left their jobs due to burnout, even without securing another position beforehand​ (Proxy Starter Site)​. What can you do to ensure your team is healthy and maintains margin?
4.  Unpleasant Work Environment or Culture: A toxic work culture and poor management are major reasons for employee turnover. Employees often leave because they feel disrespected or unvalued by their employers​ (BetterUp)​​ (U.S. Chamber of Commerce)​. Trust and respect are the two most commonly cited issues. How can you build a culture that includes both?
5.  Uncompetitive Pay: Many employees feel under-compensated. Data from the Pew Research Center shows that 63% of workers who quit in 2021 did so because of low pay​ (U.S. Chamber of Commerce)​. Additionally, ADP’s Research Institute found that job changers experienced a year-over-year average pay increase of 8.0% in April 2023​ (Pew Research)​. The labor market is a strong seller’s market. Your average employee can get a raise just by changing jobs and get onto a stronger track for compensation increases. What can you do to be competitive?

Principles for recruitment-proofing your team

•  Don’t assume you have them forever: The best way to keep someone is to not take them for granted. Assume that your best employees will only spend a chapter of their lives with you. Make that time as long and mutually beneficial as possible.
• Understand typical tenures for each position: Identify how long people tend to stay in each position. If the industry average is four years, be aware that your people may start to wonder about growth or change before that time. Develop strategies to extend that tenure. While they may not want one position forever, they may want to stay within your company.
• Develop an active retention strategy: Be intentional about retaining your talent. This depends on how magnetic your culture is. Review your approach to total compensation (pay, benefits, flexibility, time off). Consider golden handcuff policies or longevity bonuses for key employees.
• Prune your workforce: Cutting toxic or underperforming employees will make your culture more magnetic to high performers. High-performers want to perform and do not like doing someone else’s job. They will find better opportunities elsewhere if forced to tolerate poor attitudes or work ethic from others. Don’t lose your best because you are afraid to confront toxic people or underperformers.
• Develop an active employee cultivation strategy: Regularly talk to your team about their goals and interests. Communicate the potential or opportunities you see for them. View building your team and their careers as an investment. As you grow them, they’ll grow your company. As your company grows, its opportunities grow.
• Be the best place someone has ever worked: Current and former employees talk about where they work. They are your brand ambassadors. Relate to them in ways that engender their trust and respect. They’ll let others know. Even if they leave, they’ll talk about you. They may become future clients, and partners or even come back and work for you again.

The winning strategy

Despite the hullabaloo about population bombs, birth rates around the world have dropped over the last 100 years. Populations grew because people were living longer. 

Now, 50% of all countries have birthrates below replacement. In other words, their populations are aging and will soon shrink. Whatever your opinions are on that topic, this means that the workforce is becoming a rarer commodity. 

The winning strategy is this: Be the best at attracting, building, and retaining your team. You can’t play without a team. 

Take good care,

Christian