Companies across the globe are witnessing a massive churn of employees that has been termed “The Great Resignation”. Initially, it started with the United States of America, and the phenomenon has now trickled down to countries like India.
In a survey conducted by Omam Consultants, it was stated that the overall average attrition rate is projected at 19% from data gathered from 100+ companies across 18 sectors as compared to the 2021 attrition rate of 12.1%. These numbers are nothing short of alarming for companies.
What has led to this massive exodus of employees?
A report by McKinsey & Co. cites lack of career development and advancement potential as one of the top three reasons why employees left their jobs without having another one in hand and why they could return to their jobs but still plan to leave in the future.
How to mitigate it?
Lack of career development and advancement can lower employee morale and motivation to work for an organization which gradually erodes the culture of the organization. Companies can mitigate this and win the talent war by investing generously in upskilling their employees which will incentivize employees to be part of the organization while also opening doors for them to climb up the value chain.
Upskilling the talent pool consistently will not only help in retaining employees but also in creating a sense of belongingness within them. By allowing employees to expand on their skills and talents, companies enhance the likelihood of retaining their loyalty, and they are considerably more likely to stay with the firm for a longer period of time.
Upskilling not only allows a firm to have stronger and more knowledgeable teams but also to keep them away from being poached by competitor firms. Upskilling motivated employees create future managers and leaders, making it a beneficial investment in the company’s long-term vision & success.
How can companies leverage upskilling to retain talent?
Nurture confidence in employees and strengthen teams: Upskilling can help increase confidence and develop stronger, more effective teams at the workplace which is one of the key benefits for employees as well as the employer. Upskilling and having appropriate training boosts self-esteem and allows employees to feel more capable of taking proactive decisions in their work and identifying solutions more quickly.
Improves employee engagement: It’s a well-known reality that if employees don’t see any prospects for advancement within a company, they will leave for a new position elsewhere. So, if companies want to retain talent then they must offer training and development programs that promote growth and lifelong learning. It also
helps companies stay one step ahead of their competition with increased productivity.
Ensuring a sense of belongingness: When employees are neglected and their training & development requirements are overlooked, it can have a detrimental influence on their ability to feel like a valuable part of the firm. When employees observe that their company is unwilling to invest in them or their advancement, it might leave them feeling detached from their work which can have a long-term impact on productivity. Upskilling ensures employees that the company is a partner throughout their growth journey.
In fact, every corporate must have this practical outlook for learning as a lifelong process. Be it CEO or any base-level worker, learning is something that shouldn’t be restricted for anyone. Growth must always remain a part of the journey of an individual along with the corporate as a whole.
The Great Resignation has given companies an opportunity to rethink and revamp their existing employee welfare policies. Companies need to acknowledge that the current war for talent isn’t just about businesses competing with one another to find the domain experts but it’s about employers recognizing the various options that
today’s working professionals have and finding effective strategies to compete against all of them. All of this, along with continuous learning, growth & satisfaction of the employees.