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2 May 2020

Increase Retention and Growth with a Positive Company Culture

Post by Kaylee Barnes

The competition for talent is fierce, and the human resources department has a great challenge in its hands: on the one hand, it has to discover the best talents and, on the other, make sure that the company is attractive in a competitive environment.

Improving Company Culture

We are in living in a business world where the loyalty of the employee or the commitment to remain in the same organization for a long time, is an exception to the rule.

We see it in studies like the one Deloitte has done worldwide, and that reveals that 44% of millennials would give up their companies in the next two years. The range of opportunities to move to new sectors, acquire new skills, and take on new experiences is much more attractive than a fixed and stable position with few development possibilities. The future employee wants to take control of his professional career and proactively choose his own path.

Jacob Morgan, a specialist in the sector, says in his book The Employee Experience Advantage that it is about “creating a company where people really want to reach.”

In the opinion of Samuel Stern, an analyst of this practice, the experience of employees encompasses “the connections that employees obtain with colleagues, with managers, for the broader purpose of the company.”

So it is important that the person feels valued, has autonomy, and sees that they have progressed in the company.

Regarding the experience of the employee, one of the most common mistakes made by companies is to find a short-term solution. However, for the technique to succeed, several elements such as business culture, physical space, and technology must be linked.

The Direction Forward

We cannot ignore that society evolves continuously, and employees’ expectations about where and how they should work are constantly changing. For all these reasons, company culture is a primary asset for organizations that want to attract the best talents and who claim to be or remain competitive in the market.

Faced with this reality, business culture becomes more important. A recent worldwide study shows that 87% of respondents under 30 feel valued in their work environment, 82% consider it essential to incorporate new talents, and 42% see the office as a place to spend the as little time as possible.

Many companies go beyond traditional compensation packages and strive to create an appropriate company culture to find and retain the best.

The Likely Action Plan

This includes not only offering a good culture in your workplace but also additional benefits, such as gym, private medical insurance, restaurant check, among others. They make an organization more attractive to potential candidates. The possibility of buying shares, teleworking, increased vacation days, and social activities have also become fundamental pillars for talent management.

In addition to dealing with external recruitment, the human resources department has begun to realize that it must think differently about internal initiatives for talent management in the future.

Historically, these programs have focused on high-potential employees. As we move forward, we must have greater inclusion for other employees, regardless of their level in the organization.

This will make human resources leaders think more about people management than talent management, which includes identifying how an employee could move to other areas of the company and how training and development will help employees have more skills for other roles.

People management takes into account broader elements such as company culture, employee training, and engagement, which feed on recruitment and retention of talent.

In short, new business management methods are beginning to emerge. The traditional model of hierarchical organization is being questioned, and structures that go from the bottom up are being developed.

Companies will make leaders more accessible, including weekly meals and open trades, where leaders are not isolated from other employees in separate offices.

Final Thoughts: Company Culture is the Backbone of a Firm

Organizations must incorporate training and professional employee development opportunities such as loan forgiveness and smart benefits for teachers, in the fabric of the company’s culture, to reduce employee turnover. By providing a structured program at the start of their careers, the company ensures that employees gain an advantage in developing their leadership skills.

Rotation programs, for example, give employees the opportunity to experience different roles within the company and gain a better understanding of what a career in that area would require.

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