In today’s job market, where jobseekers are plentiful, employers might wonder about the importance of keeping their employees. Nevertheless, despite the surplus of potential candidates, keeping top talent remains vital for businesses.
High employee turnover can be expensive and disruptive, leading to reduced productivity and increased costs for recruiting and training. In this article, We explore why employee retention is still essential in a jobseekers’ market.
Why is there an abundance of jobseekers?
The rise of online job platforms and networking sites has provided employers with access to a wide pool of potential candidates. However, having many candidates does not necessarily mean that finding and retaining the right employees has become easier.
Employee mobility
One reason for the abundance of jobseekers is the increased mobility among younger workers. In a world that values career mobility, employees will always seek to explore new opportunities for growth and advancement.
Economic fluctuations
During economic downturns, many individuals may find themselves unemployed and looking for new job opportunities. For example, recent layoffs at large tech companies have led to many tech workers reentering the job market, which has helped ease the labour market.
This sudden influx of jobseekers may give the impression that employers have the upper hand in choosing and retaining employees. However, businesses should not become complacent and should still prioritize employee retention despite the temporary abundance of jobseekers.
Five key reasons why employee retention should be a priority
Even when employers have a wide pool of jobseekers to choose from, they must also understand that their existing employees are not immune to the attraction of other job opportunities. Businesses need to recognise the importance of employee retention to maintain a competitive edge.
1. Continuity of knowledge and expertise
Retaining experienced employees ensures the continuity of valuable knowledge and expertise within the company. Long-term employees possess institutional knowledge that is not easily replaced.
By keeping these employees engaged and motivated, businesses can tap into their wealth of experience to drive innovation and problem-solving. Losing experienced employees can result in a loss of critical knowledge, which may take time and resources to rebuild.
Read More: Knowledge-Sharing Culture: Less Pool Tables, More Pooled Resources
2. Improved team cohesion and collaboration
A stable workforce leads to improved team cohesion and collaboration. When employees stay with a company for an extended period, they develop strong working relationships with their colleagues.
This familiarity and trust translate into more effective problem-solving and higher-quality work. In contrast, high turnover can disrupt team dynamics, leading to decreased morale and a decline in productivity.
Neelesh Bhatia, CEO and founder of Akadasia, shared: “At Akadasia, employees are given access to a private virtual community, accessible through the company’s corporate site, that they can use to share new things and information that they may have learnt.”
“We also conduct regular meetings with all staff once every two weeks on top of one-on-one catchups between staff and CEO that happen every six months.”
3. Positive company culture
Employee retention contributes to a positive company culture. When employees feel valued and supported, they are more likely to be loyal and satisfied with their jobs. A strong company culture fosters a sense of belonging and encourages employees to go the extra mile.
This, in turn, creates a positive work environment that attracts and retains top talent. On the other hand, a high turnover rate can lead to a negative culture and negatively impact overall employee morale.
Joselito Sia, Zenith Infotech’s talent acquisition manager, shared: “In Zenith, we try to nurture a good level of working trust. We have an open channel for feedback and suggestions. Employees can speak to us anytime they need to.”
4. Competitive edge and innovation
Retaining top performers helps maintain a competitive edge. These individuals often drive innovation and success within a company. By encouraging their growth and development, businesses can harness their skills and expertise to stay ahead of the competition.
Losing these high-performing employees can result in losing a competitive advantage and hinder future growth.
Dell Technologies Singapore spokesperson shared: “We value upskilling and reskilling as part of our staff’s career development process. For more impact, we provide them with resources, tools and career guidance to help them showcase, keep track, and align their career aspirations with company goals.”
Read More: How Leaders Can Foster Innovation in Times of Crisis
5. Employer brand reputation
Consistent retention efforts can enhance a company’s employer brand reputation. When employees are satisfied and engaged, they are more likely to speak positively about their experiences, both internally and externally.
This positive word-of-mouth can attract potential candidates who want to work for a company with a reputation for valuing its employees. Conversely, high turnover can damage an employer’s brand image, making it less attractive to potential candidates.
Talleah Teo, HP’s Talent Acquisition Director, Asia Markets, shared: “It’s always been a priority at HP to provide employees with the tools and flexibility they need to maximise their work-life balance – or work-life integration. This is important because we know this leads to stronger engagement, a significant sense of fulfilment and, along with that, stronger business results.”
Hiring and talent retention is a delicate balance
Prioritising employee retention is crucial for businesses to maintain stability, productivity, and long-term success. By implementing effective retention strategies and creating an environment that values and supports employees, businesses can ensure they retain the top talent needed to thrive in a competitive job market.
If you’re looking to reskill your mid-career new hires or workers, explore WSG’s Employee Career Conversion Programme (CCP) for Employers.
