Talent retention: strategies, best practices, and how to retain top talent
Roughly 74% of all workers said they would be “very likely” or “somewhat likely” to leave their current employer if they were offered another job with additional education and career opportunities.1
In a fiercely competitive job market riddled with job hopping, quiet quitting, and now, “The Great Gloom,” it’s one thing to bring talent through your door, and it’s another to keep them in their seats.
Retaining talent continues to be a critical priority for organizations across industries, as it significantly impacts stability, innovation capacity, and long-term success.
Understanding Talent Retention
Why talent retention matters for your 2024 workforce planning
We surveyed business leaders at companies with 1000+ employees to learn about their priorities for achieving business-critical goals this year. 67% said that retaining top talent is an urgent priority in 2024.2
Guild Internal Data
67% of business leaders say retaining top talent is an urgent priority this year.
Simply put, talent retention can be defined as an organization’s ability to keep the right talent employed and engaged over time, reducing turnover.
Talent retention is integral to fostering a stable and high-performing workforce on multiple fronts-
1. Workplace culture
Tenured employees contribute to team cohesion, fostering positive dynamics, higher morale, and improved problem-solving abilities.
Harvard Business Review categorizes this into two types of experience brought to an organization:
- General human capital: consists of “knowledge, skills, learned capabilities, and patterns of behavior acquired through a lifetime of work and working.” Individuals can take this type of human capital with them from employer to employer because it has value to many, and employers who seek it can “buy” it in the labor market.
- Firm-specific human capital: “built” through tenure with an employer. This consists of “knowledge, social networks, mastery, and know-how generated through the experience of working in one organization with its suppliers, customers, technology, proprietary processes and intellectual capital and, of course, with one’s co-workers.”
2. Cost savings
According to The Josh Bersin Company, it can cost up to 6x more to hire externally than to develop talent from within.
Instead of going out and competing with the market, effectively “buying” talent, think of building your workforce from within.
LinkedIn data found that employees who have internal mobility (both laterally and vertically) are more likely to retain longer at their organization than those who do not. Specifically, employees who have moved internally have a 64% chance of remaining with an organization after three years versus a 45% chance for those who haven’t experienced internal mobility.
Win-win for both employees and employers.
An investment in your greatest asset, your people, not only reduces disruption, but also builds a workforce that is committed, skilled, and poised for long-term success.
The virtuous flywheel of talent attraction, talent development, and talent retention.
The ability to effectively retain talent requires a differentiated, systemic approach to HR.
It helps to imagine the talent lifecycle as a virtuous flywheel.
In this flywheel, talent acquisition and talent development teams should be informed of one another’s efforts through critical information sharing around skills gaps and internal pipelines. Closing this loop then drives employee retention, and a broadened access to opportunity.
Developing Effective Talent Retention Strategies
How to develop a talent retention strategy
An effective talent retention strategy considers different factors to take a comprehensive approach that addresses the diverse needs and expectations of employees at the right time.
Pay for today, growth for tomorrow
Pay alone is no longer enough to retain employees. Employees are now seeking growth opportunities, and are quick to change jobs to find it.
This yearning for growth is a huge unlock in terms of retention. Education and skilling programs act as a major retention tool for participating employees.
Just take a look at the data-
- On average, Guild Learning Marketplace learners were 2.3x less likely to leave their employer in the last 12 months relative to non-members 3
- On average, new hires were 2.6x less likely to leave in their first 12 months if they became a Guild learner 4
- 62% of recent or near-graduates from Guild Learning Marketplace programs say they would like to find their next career opportunity with their current employer 5
At our partner, Waste Management, workers enrolled in a Guild program are 60% more likely to stay with the company
Case Study
Charter Communication
Retaining talent is critical to Charter’s business, as having enough skilled workers is imperative in achieving their ambitious goal of bringing broadband to millions of new customers… but in order to reach a geographically dispersed population Charter had to think differently.
The answer? For Charter, it was a bold new way of packaging their benefits through Guild, offering 100% tuition-paid program options.
Why? Biggs shared that Charter employees are “not just looking for competitive pay or great benefits; they’re looking for career opportunities. They don’t just want a job, they want to know how you will help them grow.”
“They’re not just looking for competitive pay or great benefits; they’re looking for career opportunities. They don’t just want a job, they want to know how you will help them grow.”
Beth Biggs, Group Vice President, Benefits & ESC, Charter Communications
Recognize, celebrate, communicate
Effective employee engagement initiatives are essential for fostering a sense of belonging, job satisfaction, and ultimately, talent retention. These initiatives create opportunities for employees to connect with their work, colleagues, and the organization's mission and values.
This can look like:
- Mentorship/ Sponsorship
- Employee Resource Groups (ERGs)
- Leadership Development Programs
- Social Events and Team Building Activities
Recognizing achievements both big and small can boost morale and help create a positive work culture where all employees feel seen and celebrated.
This can look like:
- Awards
- Public acknowledgments
- Company Slack channels dedicated to recognition
- Time set aside for praise in company or department meetings
- Transparent communication is a necessity as it fosters trust and helps employees feel connected to the organization's goals.
- This can look like:
- Regular feedback
- Supportive management
- Skip-level conversations
- Open lines of communication
By addressing these key considerations, organizations can foster an environment where employees feel valued and motivated to excel. Incorporating these elements into talent retention strategies cultivates both loyalty and commitment, in turn reducing turnover and boosting job satisfaction.
Pulling it all together
Your employees are your greatest asset, so ensure you’re treating them as such.
A proactive talent retention strategy is imperative in securing and cultivating a high-performing workforce, driving sustained success and a competitive advantage in today’s competitive talent landscape.
