HRO Today December 2019 - 11

Upside
NEWS FROM THE WORLD OF WORK
Retention
Considerations
According to a new survey by LinkedIn, there is a 76
percent chance of an employee remaining with a company
after 12 months, a 59 percent chance after two years, and
a 48 percent chance after three years. Results suggest that
there are three key factors related to better retention.
1. Employees who change jobs are more likely to stay. Career
growth is one of the top drivers of employee engagement,
and survey results show that it doesn't make a difference
whether an employee is promoted to a more senior role or
moved laterally into a new function. What's important is
that employees believe that they have the opportunity to
grow professionally and pursue their career goals.
Making a lateral career move increased an employee's
chance of staying for the next 12 months by 48 percent.
Additionally, after three years, an employee who has
been promoted or moved laterally has a greater chance
of staying (70 percent and 62 percent, respectively) than
someone who stays in the same position for their entire
tenure (45 percent).
The lesson: Don't allow employees to remain stagnant.
2. Companies with highly rated managers see better retention.
Managers matter, and survey results show that companies
that are in the top fi ve percent for " open and effective
management " saw signifi cantly greater retention, with
a 48 percent retention rate after three years. In contract,
businesses with low management scores had a three-year
retention rate of only 32 percent.
The lesson: Effective managers who are good
communicators can boost retention-and the bottom line.
3. Empowered employees are loyal employees. It is no secret
that employees are drawn to opportunities where they feel
respected and can make a difference. This is confi rmed by
survey results showing that companies that are perceived
to be places where " employees have infl uence " have
higher retention. These companies have a retention
rate of 47 percent after three years, compared to the 35
percent retention rate of companies that are seen as less
empowering.
The lesson: Employees want control over their work,
whether that means setting their own schedules or being
free from micromanaging.
The Future
of Work
Ceridian's 2020 Future of Work Report has some
concerning fi ndings. From generational changes in the
workforce to the emergence of automated technologies,
huge tectonic shifts in the way people will work are
shaking the confi dence of U.S. executives.
In fact, 69 percent of the decision-makers surveyed
said they are very concerned about the health of their
industries over the next two years, with most identifying
rapid technological development and a shortage of skilled
talent as the biggest challenges facing their organizations.
However, worries about the impact of automation on the
workforce may be unfounded. Survey results show that
executives anticipate that the size of their workforces will
only grow as a result of automation.
* Fifty-three percent plan to adopt intelligent technologies
such as artifi cial intelligence, machine learning, and
natural language processing in the next two years.
* Executives believe that their workforce will either
increase (50 percent) or remain stable (26 percent) as a
result of this technology.
But the growing size of the workforce may only
exacerbate the existing skills shortage.
* Eighty percent of survey respondents agree that they will
need more employees with technical skills in the digital era.
*Reskilling employees is a key priority for 72 percent
of executives, with most relying on courses delivered
outside the workforce (63 percent), informal social
learning forums (62 percent), and mentoring programs (52
percent).
DECEMBER 2019 | www.hrotoday.com
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HRO Today December 2019

Table of Contents for the Digital Edition of HRO Today December 2019
