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Ilka Horstmeier, Chief HR Officer at BMW
The automotive giant is aiming for a greener future and its CHRO explains how they’ll take employees on that journey...
HR Grapevine
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Transforming the Great Resignation to the Great Hire
5 Ways Organizations Can Recruit to Retain
There have been a lot of headlines recently about ‘The Great Resignation’ with Microsoft reporting that 41% of employees will leave their current job in the next 3-6 months.
With predictions of high churn and the Recruitment & Employment Confederation revealing vacancy levels rising at the quickest rate for 23 years, this should create an opportunity for ‘The Great Hire’ But not all data is suggesting this.
The Willis Towers Watson Talent, Attraction & Retention Survey (2021) highlights challenging times in the recruitment market:
- 73% of organizations are reporting difficulty attracting talent (up 26% from the previous year)
- 61% of organizations are struggling to retain talent (up 15% from the previous year)
As organizations experience high turnover, they also face a skills shortage, creating a fierce competition for talent.
To help organizations tackle this, we looked to our bank of Employee Experience data, to see what the key drivers of retention are.
High Performance Retention Drivers
Willis Towers Watson has millions of data points allowing us to analyze what sets organizations apart for delivering a High-Performance-Employee-Experience. Focusing on retention, we can see the most critical drivers below:
The research supports reports from McKinsey that 54% of employees are leaving as they don’t feel valued and presents a clear picture for where organizations should focus to address retention.
With such a competitive landscape for talent, organizations should consider how they can be a step ahead on retention issues, and at the hiring stage of the employee experience.
Retention
#1 TOTAL REWARDS
#2 PURPOSE
#3 PEOPLE
Growth
- Able to achieve personal career objectives
- Have opportunities to develop and grow
Fair Pay
- Rewarded fairly for work done
- Company matches pay to performance
Capability
- Have opportunities to learn new skills
- Performance is evaluated fairly
#2 PURPOSE
Inclusion
- Support for equal opportunity for all
- Support for workplace diversity
#3 PEOPLE
Trust
- Leaders encourage employees to give their best
- Leaders communicate openly and honestly
Connecting Hire Metrics with Retention Drivers
The Saville Assessment ROI model for measuring assessment effectiveness helps organizations prioritize and benchmark where their assessment process needs to demonstrate value across five key metrics.
Using this model and the data for retention drivers, we are able to highlight five key considerations for preventing retention issues.
1) Are you maintaining a diverse applicant pool throughout the process?
People want to be part of a diverse workplace, offering equal opportunities for all. Using objective, well-researched assessments prevents adverse impact and mitigates the opportunity for bias. If you are not maintaining a diverse applicant pipeline, this will impact the future diversity of your workforce.
2) Are your high-potential candidates reaching the final stages of your selection process?
Having the opportunity to grow and develop are top drivers of retention. A key part of this is identifying the right people for the right roles with measures of future potential and cultural fit.
3) Does your recruitment process reflect your value proposition?
With many organizations experiencing skills shortages and attraction issues, ensuring you are engaging your applicant pool, delivering a positive experience and building early engagement is key.
4) Do you have a low rate of reneged offers?
36% of people who quit their jobs in the last six months did so without a new job in hand (McKinsey). It is a candidate’s market and they will be applying to multiple organizations. Ensuring your processes are efficient will be critical to avoid losing talent to competitors.
5) Do you measure the value of retained, successful, performers?
To ensure organizations are implementing a hiring process that will drive retention, they need a lens on the long-term retention value of a good hire, as well as measuring the cost per hire.
Unlock the Potential of your People
Our award-winning personality questionnaires, aptitude tests, situational judgment tests and talent analytics blend scientific expertise with digital innovation to accurately predict workplace performance & potential.
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