Why HR leaders are prioritizing retention this fall

A new year typically brings new goals, and for many, that means landing a new job. That might be why the majority (66%) of employers are prioritizing retaining talent for the remainder of the year, recent data from insurance broker and consultancy Gallagher suggests. Over 4,000 US organizations participated in the survey, which was conducted between December 2022 and Mary 2023.

Factors including inadequate pay, a lack of career development, poor leadership, limited workplace flexibility, and not feeling supported by employers all contribute to employee turnover, according to Gallagher.

While labor shortages, high turnover rates, and legislative changes have spurred employers to enhance their compensation packages to reduce the risk of losing talent, there’s another area HR can focus on to maintain their workforce.

Doing well, thanks. Employee well-being is a hot topic these days. More than two-thirds of respondents said they upgraded their well-being initiatives this year. That’s up six points from the previous year. But what does well-being mean, and how can it be used as a retention tool?

True well-being requires approaching an individual’s life in a holistic way. Employers should consider four key aspects of employee well-being: financial, career, emotional, and physical. Prioritizing these aspects of well-being through enhanced benefits can create a stronger bond between employees and employers, Gallagher noted.

Well-being initiatives can include fertility and women’s health benefits, clinical mental health support, tailored caregiver benefits, and flexible schedules.

Retaining talent will require taking a proactive approach to well-being. A reactive approach can have a detrimental impact on an organization, taking up valuable time, resources, and money, and resulting in higher turnover, according to Obsidian HR.

“Getting out ahead of change, not just keeping pace, has become a more critical directive for meeting employees’ needs,” the Gallagher report said. “By aligning total rewards with organizational priorities, employers provide the foundational structure for strategic success.”