Is your organization struggling with high turnover rates or are you concerned with the company’s ability to retain talent in the midst of the Great Resignation’? If so, you’re not alone. Nearly one-quarter of Canadian companies are experiencing an increase in employee turnover.
As if this challenge isn’t enough, today’s organizations are simultaneously facing emerging labour shortages, growing skills gaps, and higher hiring costs that can accumulate to reach more than 20% of the annual salary for the role. These factors make retaining talent more important than ever.
We understand just how important talent retention is to today’s employers. We don’t just work with employers, but rather, we form a partnership to develop comprehensive strategies that drive positive outcomes, including improved retention. We recently worked with a Canadian retailer that manages multiple warehouses in Ontario. The company was struggling with increased turnover and absenteeism and that was hindering production levels.
We set out to help the company improve retention rates while reducing unexplained absenteeism. Here’s what we did and what we learned.
a strong employer brand is key
Studies show that a strong employer brand can reduce employer turnover by as much as 28%. This factor makes it crucial for your organization to take the time to re-evaluate its employer brand to ensure it’s in alignment with company goals and objectives. Having a strong employer brand in place will make your company more attractive to both current workers and prospective candidates.
salaries remain the number one motivator
Competitive compensation is another factor that we had to examine. According to our recent research, 65% of Canadian blue-collar workers and 60% of Canadian white-collar workers consider higher salaries a strong motivator for changing jobs. The reality is that the combination of the current labour shortage and growing skills gap has created a highly competitive marketplace. Without competitive salary offerings, it may be nearly impossible for your organization to attract or retain the talent it needs moving forward.
optimize results with randstad onsite support
Through our partnership with this Canadian retailer, we were able to determine that the company already had a strong employer brand that aligned with its company culture. This led our team to take a closer look at the company’s salary offerings and how they compare to the local competition. Since
the company’s current salary levels were equal to or even slightly lower than some of its competition, the decision was made to focus on overcoming this challenge.
Our Randstad In-House team provided onsite support to assist the company with implementing a plan to increase salaries in a way that would lower both turnover rates and unexplained absenteeism.
Download our full case study to learn more about how Randstad’s partnership with a Canadian retailer helped the company improve retention across the board, while simultaneously reducing absenteeism.