According to a new Executive Networks survey of CHROs, 83% are struggling with talent retention, with 50% of respondents indicating their retention problems are limited to high-demand roles. Top factors contributing to voluntary turnover include burnout (19%), lack of career and advancement opportunities (19%), work-life balance issues (18%), wanting more compensation or benefits (18%) and feeling underappreciated (8%).
In an attempt to battle high turnover rates, 73% of respondents are turning to internal talent marketplaces, though 32% of respondents say these are limited in scope. Other approaches include removing barriers to entry, increasing employee referral bonuses and launching in-house staffing agencies.
Close to a third (28%) of CHROs also predict their budget for employee well-being programs to increase by 10 – 19% over the next 12 months, indicating that reducing stress, burnout and work life balance issues are key to stemming high turnover rates.
“HR leaders are under pressure to stem the tide of resignations and help companies re-think what will make employees want to stay,” said Jeanne Meister, Executive Vice President, Executive Networks. “Recruiting new talent isn't the only answer. In many cases, employees are re-evaluating their priorities and purpose and employers need to better understand how to provide employees with success by staying put.”
This is a time of reevaluation and reinvention for CHROs, particularly when it comes to retaining employees. At this crucial time, the focus should be on in-person collaboration, flexibility, inclusion and innovation.