We have entered a new era of business, and organisations and leaders that don't respond to this new world will find it increasingly challenging to retain their people and deliver sustainable outcomes.

All organisations face an ever-changing, volatile, and complex environment that pressures all aspects of business life. In this context, leaders must do everything they can to retain valuable employees to deliver sustainable results in a volatile context.

While all organisations require a healthy level of labour turnover, it is imperative that businesses put in the effort to retain the intellectual capital of their most valued employees. If they don’t, this will impact the organisations’ ability to navigate the challenges of the present business context.

THE RETENTION CHALLENGE

We have known for a long time that effective employee retention requires a greater focus on the employee experience and ensuring that people are engaged and motivated to deliver business outcomes. Unfortunately, the global statistics on employee engagement are not very positive, with only 23% of employees saying they are engaged (Gallup, 2023).

Organisations must tackle the issue of employee engagement if they want to retain talent effectively. The Corporate Leadership Council (2004) found that engaged employees are 87% less likely to leave their organisation, and the 100 best places to work had an average voluntary turnover of 13% compared with 28.5% for other businesses.

Recently, there has been a lot of publicity about a range of global trends in employee retention, ‘quiet quitting’, ‘loud quitting’, and ‘great resignation’, to name a few. At the same time, many organisations are experiencing skills shortages and are struggling to recruit the talent they need to deliver sustainable outcomes.

A report by Korn Ferry found that by 2030, more than 85 million jobs could go unfilled because there aren’t enough skilled people to take them (2030 The Future of Work). Employees across all age groups are making choices about changing jobs and organisations faster than previously experienced.

RISING TO THE CHALLENGE OF RETAINING TALENT

The last few years have profoundly impacted the workplace dynamics and employees' expectations, making it crucial for organisations to adapt. Engaging and Retaining employees in today’s volatile and unpredictable world requires a focus on several key aspects.

• Changing Requirements for Engaging the Younger Generation| Generation Z is a growing part of the workforce, demanding that organisations take more significant notice of employee engagement.The Gen Zs are far more willing to take a risk and change jobs if their organisation does not take action to retain them. 35% say they plan to change employers in the next 12 months, compared with 26% in the other generations (PwC Global Hopes and Fears Survey, 2023).

  Businesses must find creative ways to engage with their employees across all generations. Still, in particular, they will need to meet the challenges of engaging the Gen Zs by providing the opportunity for career growth and lifestyle choices.

• New Work Models| The shift to remote and hybrid working during the pandemic has led to a growing preference for remote or hybrid work arrangements. Employees now value flexibility and the ability to work from anywhere. Organisations need to accommodate these preferences by offering remote work options or flexible scheduling to retain employees.
• Maintaining Organisational Culture| A toxic culture is ten times more important than compensation in predicting labour turnover (Sull, Sull & Zweig, 2022). With the increased levels of hybrid and remote work, there is the potential for a negative impact on the organisation's culture and employees' connection to the organisation.Reduced face-to-face interactions and a lack of social interactions can make employees feel disconnected and socially isolated. Organisations need to foster a healthy culture and keep employees engaged.
• Addressing burnout and mental well-being| Up to 10 million people in the UK (almost 20% of the population)will need either new or additional mental health support in the next five years. The volatile work context has increased stress levels for many employees. Remote work boundaries can blur, leading to longer working hours and work-life balance challenges. Employers must prioritise employee well-being, offering resources for mental health support and encouraging work-life balance practices to mitigate burnout and retain talent.

But more importantly, in today's world, with the pace of change and the need to embrace Artificial Intelligence and new ways of working, there is one key strategy that stands out:

Regular Career Growth Conversations

Economic uncertainty and company-wide disruptions caused by the volatile business context have dramatically increased the need for regular career conversations. Organisations should focus on developing clear career paths, offering upskilling or reskilling opportunities, and providing mentorship programs or tailored coaching to help employees navigate their careers and progress despite obstacles.

This is the only way to effectively support individuals to grow and develop so that they can stay ahead of the changing world we are living in. Organisations must be attentive to individual needs and provide personalised support where possible. Supporting employee development and career planning goes a long way in fostering loyalty and retaining top talent.

Outcomes Of Effective Career Growth Conversations

• Career growth conversations allow for the alignment of employee aspirations with organisational goals. By having open and honest discussions about career progression, employees can express their goals and ambitions, and employers can provide guidance on achieving them within the company's requirements. This alignment helps create a sense of belonging and confidence in the organisation. This is particularly important with Gen Zs to ensure their expectations align with the organisation's capacity.
• Regular career growth conversations demonstrate that the organisation values employees and is invested in their professional development. Employees who feel supported and encouraged to grow are more likely to remain committed to the company. These conversations also provide an opportunity for managers to identify and address any potential issues or concerns that could affect an employee's engagement or long-term commitment to the organisation
• Career growth conversations contribute to a positive organisational culture. When employees see that their growth is a priority and there are clear pathways for advancement, they feel valued and recognised. This can foster a positive work environment, increased job satisfaction, and a stronger sense of loyalty towards the organisation.

In conclusion, regular career growth conversations are vital to employee retention. By investing in these conversations, organisations can create an environment that supports employee growth and engagement, ultimately reducing turnover and retaining top

Dr Lynda Folan is an Organisational Psychologist, renowned Leadership and Organisational Development specialist, and author of 'Leader Resilience, The New Frontier of Leadership (2021)'.  Lynda has considerable expertise in leading organisations through transformational change and works with organisations across the globe to deliver Leadership Development, Organisational Development, Cultural Transformation and Resilience. As the Managing Director of Inspired Development Solutions, Lynda leads a team that provides leading-edge and bespoke solutions for businesses across all sectors - website: https://www.inspireddevelopment.net/