Recruitment vs. Retention: What should companies prioritize?

The Great Resignation has been unfolding since April 2021. In fact, more job seekers left their jobs in January after receiving their year-end bonuses. Workers have the upper hand because there are so many job openings tied to enticing sign-on bonuses and opportunity for salary increases and in some cases better work life balance. Due to the pandemic, remote work and flexible work schedules are more desired by employees.

So what do employers need to do? I think they need to adjust their strategy.

Right now many companies are focused on recruiting new talent but the reality is that is a short-term solution for a long-term turnover problem. They need to focus their efforts on retention more so than recruitment. It costs more money to hire and onboard new employees for them to just leave.

Retention> Recruitment

I think companies fail their loyal employees when they provide sign-on bonuses to poach workers from other companies. Yes, I won’t deny there is a need to backfill roles. Yes, I agree that companies need to stay competitive by providing sign-on bonuses. However, what about the employees that have been doing double or triple the work while these roles have been empty? I bet they’re not seeing a salary increase. They just have to pick up the slack because that is the nature of the business.

Obviously, companies need to get top talent in the door but it doesn’t help the business if they don’t stay. I am urging executives to ask themselves the following questions:

• Why are people leaving? This insight can be extracted from exit interviews.

• What incentives can we give to current employees to encourage them to stay?

  • Salary increases

  • Bonuses

  • Flexible work schedule

  • Paid time off

  • Wellness programs

• What programs can we roll out to boost employee morale?

• How can we collaborate with ERG leaders to promote diversity, equity, and inclusion in the workplace?

• How can we create more inclusive environments for people of color?

If you enjoyed reading this blog, read “The Inside Scoop on #WFH from an ex essential worker”

Stay Creative,

Lauren