Our research says more than 60% of H.R. professionals have reported an increase in the number of employees offered from a competitor/rival. At a time of tight labor markets, replacing talent is challenging and expensive.
Any employee jumping ship would take their ideas with them. As a direct impact, the cost of replacing mid-level employees is 150% of their annual salary, which jumps to 400% of the salary for specialized workers.
When you think that a high-performing employee is about to be poached or already has been offered by a competitor, these tips will help you minimize the loss.
Consider Non-compete Clauses
Organizations have relied on non-compete clauses and non-solicitation contracts to keep their employees away from competitors. Though legal agreements are essential, they may not be enough.
Research shows that legal agreements stifle performance because treating employees like you own them will restrict their ability. As a result, many governments are changing the legislation that goes against non-competes.
When employees get a feeling of dread, it may crush your brand as a good employer. Contrarily, organizations must strive to be an employer that people don’t want to leave.
Be Mindful of Signals
Employees are most receptive to recruiters and are likely to quit –
- During their work anniversaries.
- During annual reviews.
- When they do not get promotions.
- When a high-stakes project is postponed or shelved.
Additionally, pay attention to office gossip to get a confirmation.
Talk to the Employee but Don’t Counteroffer
When you know that an employee is about to leave, prevent it proactively. Have a conversation with the employee and find ways to improve the employee’s work life. Ask questions –
- What factors frustrating them at work?
- Will a change help them reconsider?
If you can find an alternative that could help the employee stay, it’s a win-win. For example, provide a challenge internally, place the employee on a strategic project, offer a new territory, etc.
However, counteroffering is counterproductive. You will pay employees to be in an environment he/she does not like. Boosting salary will make the employee’s team members unhappy when/if word gets out.
Be Attentive to Your Best People
Treat high-performing employees like they are going to leave. If you lose a high-performing employee, it could change the company culture. Conduct ‘stay interviews,’ and ask them questions –
- Why do you continue to work here?
- Are there any causes of frustration?
- What would keep you from leaving?
Use the feedback to create ‘personalized retention plans’ addressing their issues. Allow more work from home hours, make a flexible work schedule, or change a project. They stay not because they have to, but the options you give them will not get them to reconsider the decision to leave and go elsewhere.
After the employee’s departure, work with his/her friends in the company and find out what they need to stay. Let them know how much of a difference they make in the organization.
Employee Turnover is a Part of Business
The management may be disappointed due to the investment in the employee. They treat employee turnover as an insult. However, it is good to let the person go as a certain degree of turnover is inevitable. Put yourself in their shoes and stay in touch with them even after they have left.
Everyone wants a new experience, expose themselves to new things, get a higher salary, etc. Nonetheless, retain your relationship with them. The chances are that they will call on you to ask for career advice or rejoin your company if they feel you have a project that they can handle.
A.I. Can Change How Companies Retain Employees
Artificial Intelligence (A.I.) has impacted every aspect of business, including recruitment, training, and employee retention. Predictive technology is reducing employee turnover resulting in cost savings.
In addition, A.I. is assisting companies in training and employee development. It is taking up the challenge of providing employees with thorough knowledge and understanding of an organization’s internal policies and procedures.
Moreover, M.L. can recommend programs and events that would interest employees, freeing up the H.R. team to focus on other priorities. A.I.-based learning systems are customizing employee-related training programs based on individual employee performance.
Using data provided by this technology, H.R. can proactively intervene and provide vital support to help solve problems employees face. In addition, it can spot patterns in historical data to predict future behavior.
- A.I algorithms have made it possible for recruiters to revise job descriptions to attract and recruit the best talents in real-time.
- M.L. is providing employees with induction training and workplace acclimatization support.
- A.I.-based training software is providing employees with customizable training programs that address their needs and priorities.
- It can reduce employee turnover through data analysis.
However, there is always a need for humans to intervene to determine the highest workforce productivity. Nonetheless, H.R. should see A.I.-technology as a key investment to take human resource management to the next level.
Draup is an A.I.-driven talent intelligence and reskilling platform with extensive knowledge of the talent market. Its predictive technology is helping H.R. teams to keep up with evolving skill requirements and is identifying ways to tap into new talent pools.
Draup also assists organizations in developing mechanisms for company-wide reskilling projects allowing employees to adapt to changing technology needs. Organizations can perform skills analysis for niche and in-demand roles in emerging technologies and gain insights into competitors’ hiring trends.