The Importance of Talent Retention in a Competitive Market

Retention of talent is a subject increasingly discussed by managers and HR professionals in businesses of all sizes. And it would not be for less, after all, companies with good practices of management of people present a performance 51% superior to the competition.

Therefore, it is not enough to hire professionals above average, they must be retained and ensure that they deliver excellent results for the company. This, especially in a competitive market, makes a difference in achieving organizational goals and objectives.

Thinking through all this, we have created an incredible guide for you. Today, let’s talk more about retention, its benefits to the company and key practices to achieve great results. Keep reading and stay on topic!

The retention of talent as a competitive factor

Unsurprisingly, the market is more competitive. Every day, new businesses emerge, just as others go into decline. Consumers acquire new habits, new products (with short life cycle) are released and so on. And what to do about it? How to ensure that goals are reached at the end of each month?

We need talented people, who subsidize more than average teams and deliver great results for the firm. All of a company’s goals, however ambitious, need competent people to achieve. This will ensure greater chances of staying ahead of the competition, reaching new heights.

For all this, the investment in policies and practices for the retention of professionals is increasing. Several companies, even the largest and with strong employer brands, invest heavily in the subject – implementing career plans, benefits, etc.

It is also important to highlight that the exit of professionals (called turnover) generates several problems, affecting the competitiveness of the enterprise. Among the main ones, it is possible to highlight the expenditure with labor terminations, the overload of the professionals that remain in the picture and the devaluation of the employer brand.

The main benefits of retaining talent

As said, many companies already invest in the subject. The solutions are the most diverse, such as the use of innovative benefits – in Google, for example, it is possible to take the pet to the office. But why so much effort in retaining talent? What advantages can be seen? Keep reading to learn more:

1. Increased Productivity

Productivity is related to the number of resources (such as people, time, and energy) used to achieve specific results. The problem is that only 39% of the workload is productive. All the rest is wasted on unnecessary activities.

In this sense, retention practices play a big role. In addition to keeping the talents (who are the most productive professionals) in the company, they contribute to making them feel more valued and the internal (healthy) competitiveness level to grow.

2. Reduction of labor expenses

The turnover is one of the most important metrics for the company because it represents the exit of people from the staff. To some extent, this number is acceptable. However, when high, it generates undue expenses with terminations, labor fines and new recruitment processes (recruitment, selection, integration, training, etc.).

The reduction of these types of expenses should be a priority, after all, they are not strategic and do not add any value to the company. This same resource can be reallocated in programs of development of leaders, modern systems of management of people, improvement of the processes and endomarketing campaigns, for example.

3. Optimizing the working climate

The organizational climate is a kind of “atmosphere” within the company, which influences and is influenced by the professionals who work in it. A pleasant climate contributes to the reduction of conflicts or parallel conversations and to optimize the perception of well-being in the establishment.

According to research, organizations that offer the quality of life at work are about to 86% more productive and 70% more profitable. The reason is that, talents, who feel valued, work with more commitment and hard work, embracing the internal values of the business.

4. Attracting new talents

It is important that the company also know how to attract good candidates for future selection processes who have the knowledge, skills, and values needed to take on the open position. This will give you great results.

Professionals above average choose where to work and give preference to companies that offer challenges as well as the quality of life and chances of growth. The problem is that if a company cannot retain its current talent, it can hardly attract new ones.

Key practices for talent retention

Having already understood the importance of retention for differentiation and business growth, it is necessary to know some practices that help in the matter. This can vary greatly according to each company, its culture, size and degree of maturity. See the main practices:

1. Execution of a good selection

It may not seem like it, but the success of retention still begins in the process of contraction. When hiring someone with focus only on their skills or technical knowledge, the chances are that the individual has no adherence to the company or the work team.

To eliminate this problem, you also need to take into account the candidate’s values, assessing whether he demonstrates synergy with the company in general.

2. Offering salaries and competitive benefits

Most of the talent leaves the company because they have received a competitive bid with a higher salary or a more attractive benefits package. For this reason, it is necessary to reflect on these two aspects, seeking to make them competitive.

First, evaluate whether the salaries offered are on the market average – this can be done with the help of websites such as Glassdoor or LinkedIn. The goal is not to offer a higher salary, but that is on average practiced. As for the benefits, try to balance the financial and non-financial – like culture, partnership with academies, educational institutions, etc.

3. Possibility of growth

Every professional wants to grow, reach new positions in the company and face new challenges. That eagerness is still greater in the Millennials generation, renowned for their restlessness. So it is imperative to offer a good plan of positions and salaries.

The objective of this plan is to mark the growth of professionals, indicating the positions and salaries that can be achieved. To do so, list variables such as goals achieved and “home” time. Most of the time, when using this plan, the positions are divided into junior, full and senior, thus giving a greater perspective of growth.

Look, now you’re on the subject. Never forget that talent retention is a powerful differentiator, which contributes to the company’s success and longevity in competitive markets. So make a good selection and offer the possibility of professional growth, as well as good salaries and benefits, to the current collaborators.