5 Important Retention Trends You Need To Know Now

The majority of employees don’t believe their salaries are keeping up with inflation and because of that many are once again looking for better-paying jobs.

These six retention trends can help you keep your current talent happy, according to Talent.com.

Retention Trend 1: Benefits

You can expect to see an increasing importance of benefits in worker compensation packages.

In fact, 60% of job seekers find benefits to be an important element when looking for a job, second only to salary, according to a Talent.com study. With the talent crunch that the labor market witnessed and continues to experience in some verticals, organizations will turn to implementing more comprehensive and attractive benefits packages to attract and retain top talent.

“Non-traditional benefits such as access to fertility treatments, financial wellness programs and pet insurance won’t be irregular to see,” says Robert Boersma, VP, Operations, North America at Talent.com.

“Moreover, as an increasing number of states move in the direction of pay transparency, job seekers will also turn to benefits as a negotiation tactic. Increased vacation days, parental leave and 401(k) matching are a few of the many avenues job seekers will leverage.”

Retention Trend 2: Upskilling, Soft Skilling

Upskilling and soft skills made their appearance in recent years. But with economic uncertainty, upskilling opportunities are going to be a prominent retention strategy.

Why?

Because it shows an employer’s commitment to growing its company.

“Organizations today have picked up on employees’ desire for continuous learning and so we will see unique learning and development programs set in place as they create an environment where upskilling is encouraged and also reap the rewards of developing highly skilled teams,” explains Boersma. 

Additionally, soft skills are invaluable to an organization. “Holding these skills often sets top leaders apart,” says Boersma. “Interpersonal communication, decision making, time management and collaboration are all soft skills for employees and job seekers alike to focus on in the new year to increase their value in the workforce.”

Retention Trend 3: Hybrid Work

The desire for a flexible work environment isn’t going anywhere. In fact, its popularity will only increase.

Employees feel working in an office five days a week for eight hours a day is going backward, especially after experiencing the freedom of remote work for the past few years. Providing this freedom and the technology to work remotely will give organizations one up on their competition.

“Many employees have stated that having a non-flexible work environment can be a dealbreaker,” says Boersma. “So, we will continue to see employees’ wants being taken into account through hybrid work models.”

Retention Trend 4: Pay Transparency

Pay transparency took hold of the U.S. in recent years, and it’ll only gain more traction because according to Boersma, “[it’s] the future of work.” Some cities and many states already have pay transparency laws in place, requiring employers to state salary ranges in job descriptions.

“Pay transparency is ultimately one way to correct wage gaps, and erase pay discrimination, which would be a huge victory,” said Boersma. “A recent study conducted by Talent.com showcasing New York City residents’ thoughts on pay transparency displayed that nearly 35% of job seekers experienced pay discrimination and over 50% of those were women. Pay discrimination is an issue that has plagued the employment sector for far too long, and enacting salary transparency can help address the situation.”

Retention Trend 5: Mental Health

With all the economic stress that’s going on in the U.S. from the possible recession to nationwide layoffs, many employees are stressed about the future of their jobs.

And while the U.S. has come a long way since the start of the pandemic to embrace the mental health and wellness needs of employees in the workplace, there’s still more work to be done.

“Although we have moved past the pandemic, now is not the time to move backward on the tremendous progress made that allowed employees to be open about their mental health struggles,” says Boersma.

“Times of economic uncertainty bring about a whole new set of fears that have the power to negatively affect mental health. The onus is on employers to recognize these potential barriers and provide employees with ongoing access to resources that can improve their mental well-being, and in turn work performance.”