The Power of Talent Retention

In this global era where there is high competition in the market, the drive is for firms to put measures in place to keep highflyers (talented employees) from an exodus experience. The survival of firms is highly dependent on their human assets. Subsequently, a mandatory requirement for companies is to retain those human assets.

The talent management process refers to several Human Resources (HR) activities. Talent identification as the first phase of the process is a primary concern for HR and impacts how employees identify with their employer. Talent assessment and development is the next part of the process, where talent development is done through various tools. 

Talent retention is the last but not less important part of the previous ones. Talent retention for big companies is much more important than identifying and attracting new talented individuals. For both the employee and employer to be satisfied, companies must constantly develop employee potential through continuous education and training.

Lately, the demand for talent has increased more rapidly than the available supply of talent, and retention has become a big issue for many firms. Generally, skilled talents create higher value than employees with average skills. 

According to LinkedIn’s 2019 Workforce Learning Report, 94 per cent of employees say that they would stay at a company longer if it simply invested in helping them learn. Consequently, prerequisites for better retention of young talented people can be created by setting attractive goals that are linked to the focus on continuous education. Other findings by the Association for Talent Development (ATD) show that companies offering a formalised training programme increase their profitability per employee by 218%. Companies, where the retention process is successful, can generate higher productivity and improved customer satisfaction.‍

Recent research by the Center for Financial Training and Educational Alliance (CFTEA) has also shown that the employee retention rate grows by at least 30% at companies with a formal training program. In such companies, employees feel their progress is prioritised, hence the less propensity to look for opportunities elsewhere. 

Similarly, about 70% of employees leave their current workplace for a company that invests in employee development. This indicates that turnover is lower for many companies if they’d start investing in a proper training and development program.