How can today’s HR departments retain their company’s top performers? With the ‘job for life’ phenomenon a thing of the past, employees are increasingly curious about networking with other firms for the seeking of potential career opportunities. Whether they look for more money, better conditions, better training or a more senior position, employees are constantly on the lookout and very open to passively interviewing with external companies. How can HR stem the tide of staff turnover and retain more of the company’s best performers?
All aboard!
According to the recent HKIRM Quarterly Survey on Manpower Statistics, Hong Kong is currently suffering the highest levels of staff turnover in over a decade. HR departments are struggling to cope with high attrition rates, which are currently running at 17%. Resource and talent management provider firm Alexander Mann Solutions has reported that employees are increasingly looking outside their current organisation for opportunities, which is forcing companies to play catch-up and constantly chase new candidates to replace leavers.
According to Martin Cerullo, Managing Director, Development, APAC for Alexander Mann Solutions, “Staff attrition is a concern for organisations the world over. The reason it is so pronounced in Hong Kong is that strong economies provide a far greater variety of choices and volume of opportunities to the skilled workforce. With the APAC region’s economy in decent shape and Hong Kong particularly competitive, staff attrition is going to remain high on the talent agenda for the foreseeable future. It is essential that businesses find ways to successfully address it.”
A changing workforce
As more Gen Y workers join the workforce they bring both a different attitude and a different set of requirements to the workplace. Fifteen or twenty years ago employees would focus on a single specialism and often stay with just one or two firms throughout their career. Today’s workers often aspire to have multiple roles throughout their career and to work in multiple industries, sectors and disciplines.
Are we looking in the right places?
According to Cerullo, organisations and HR teams usually put more effort and resource into recruiting new talent from external sources than they do for retaining existing talent. He opined, “It’s easier to recruit staff from outside the organisation, especially with the sourcing tools at a recruiter’s disposal. But this means overlooking existing staff who may be interested in new opportunities within the company.”
Cerullo concluded that, as a result, internal candidates will in turn look to opportunities outside of their current employer as they may feel they are not getting the same level of care as external candidates.
Companies that encourage or mandate internal mobility programmes—and have the appropriate structures and processes to match—fare better than those that view internal mobility as a bolt-on to regular recruitment.
Cerullo also noted that when companies invest the time, effort and resources to build a strong employer brand and a positive working environment, it becomes easier to present opportunities to an internal audience. He observed, “Remember—the day-to-day experience of working in a company is crucial, both in selling the company to external candidates looking for the next opportunity, and to the retention of existing staff who are delivering value.”
In conclusion, it appears HR needs to focus more on developing and promoting internal movement opportunities within the organisation as well as focusing on strong employer branding and creating a great place to work. It is clear that Hong Kong is facing some serious challenges with staff turnover. Those companies who address these problems early on, as opposed to burying their heads in the sand and hoping the problems will disappear, will be the long-term winners.
Paul Arkwright
Publisher
