Talent retention. One of the greatest challenges companies have been facing the past decade as a new generation of workers seek employers that offer the best opportunity, flexibility, culture and perks. Businesses have tried renovating office spaces to offer more open, collaborative spaces. They’ve tried special incentives and perks like Fridays off in the summer, unlimited vacation time, and social activities to increase bonding. Post-pandemic, companies are navigating the increased demand for more permanent remote work options.
However, they may be overlooking one traditional, old-school approach – internal advancement.
A LinkedIn study of 32 million profiles found that “employees who were promoted within three years of being hired have a 70 percent chance of staying onboard, and those who made a lateral move have a 62 percent chance of staying. Those who were not promoted and who did not change jobs internally have only a 45 percent chance of remaining.”
Leadership matters. When leaders invest in their employees – recognize hard work and everyday wins, mentor promising team members, and provide professional development – employees feel valued and are more likely to stay onboard.
An important strategy for building strong leadership teams and engaging employees in the long-term is to develop – and communicate! – internal training and advancement policies and opportunities. Building a culture that values and rewards hard work, drives motivation. When employees know that meeting objectives and goals, and completing training or professional development programs can help them create a path for advancement, they are more likely to stay versus seeking new jobs that offer advancement and higher pay.
According to Paychex consultant Rob Sanders, "You can't overestimate the advantage someone who is already an employee of the company has by knowing the culture, the internal partners, and the services, products, and technology already in place."
Internal promotion policies not only provide a solution to long-term employee engagement and reduce the expense of turnover, but also foster a culture of accountability and commitment.
Contact us today to learn more about our modern approach to performance management and development that actually improves the manager and employee relationship. Don’t just take our word for it, see what our Customers have to say.