The Key to Retaining Your Employees Is Right Under Your Nose Retention will be the name of the game in 2023 — and the best way to ensure that employees stick around is to invest in initiatives that facilitate fulfilling work experiences.
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The year started off with HR continuing to make headlines, as news of massive layoffs within tech and other industries have dominated headlines and discussions about the incredible capabilities of predictive AI — like those displayed by ChatGPT — have complicated the hiring process. It might seem that, after years of record-low unemployment and rapid hiring pushes, 2023 will usher in a new era for managers and employees alike; one that may again favor employers' interests, juxtaposed by a strong desire for employees to feel a sense of purpose and belonging at work.
While candidates will likely have less leverage going into negotiations than they did at the height of the Great Resignation, the power balance in the workforce may not shift as significantly as one might think. Unemployment is still incredibly low and there are still roles sitting unfilled at businesses around the country. News of layoffs elsewhere may even send employees who feel undervalued or at risk in their current roles to seek new opportunities to get ahead of an unforeseen loss of income.
That's bad news for employers looking to cut costs. In general, the reality is that retaining workers costs less than hiring new employees, even if it means paying tenured employees more or working with them to better address needs or concerns. This has always been the case as onboarding and training takes time and effort, slowing productivity until the new employee gets up to speed. However, it's even more important in today's labor market, where workers are regularly seeing their compensation increase by almost 10% when they change jobs.