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Why HR Departments Value Soft Skills when Planning Employee Retention Strategies for 2023

  • By Sheldon Kawarsky
  • January 31, 2023

Employee Retention

The Human Resources (HR) department of a company is responsible for managing and planning employee retention strategies. Employee retention is an important component of any HR strategy, as it helps to ensure that the right people are in place to drive growth and success within the organization. As we move into 2023, there are some new trends and approaches that HR plans to implement when it comes to employee retention.

What Is Employee Retention?

Employee retention is keeping employees in an organization for as long as possible. Employee retention strategies involve methods, practices, and activities designed to retain valuable employees. Employee retention not only keeps talented and experienced individuals within an organization but also helps reduce training costs and contributes to overall workplace morale.

7 Reasons for Employee Resignation

  • Lack of Appreciation: Employees that feel undervalued or unrecognized are more likely to leave an organization.
  • Poor Employee Relationships: Employee relations have a direct impact on the morale and productivity of staff. Poor relationships between employees, their managers, and other team members can lead to retention issues.
  • Low Employee Engagement: Employee engagement is essential for keeping employees satisfied and motivated. A lack of employee engagement can lead to feelings of dissatisfaction, resulting in higher turnover rates.
  • Unclear Expectations: When expectations are unclear, employees can become frustrated and confused about their job duties. This uncertainty can result in higher turnover rates as employees may feel unable to perform their job duties.
  • Unmet Employee Promises: Employees may feel that they have been promised something and then not received it, resulting in a feeling of being taken advantage of and leading to higher turnover rates.
  • Lack of Opportunity for Advancement: If employees do not see any opportunity for advancement, they will likely look elsewhere for a job.
  • Poor Compensation: Employee pay is typically one of the main factors influencing employee retention. If employees feel their salaries are too low or not competitive enough, they may resign and seek other opportunities outside the organization.

Employee Retention Strategies for 2023

Employee retention strategies for 2023 should focus on improving employee engagement, creating a positive work environment, and ensuring that employees have the necessary resources to succeed.  Here are some key strategies for 2023:

Prioritizing Employee Retention Over New Hiring

HR departments should prioritize employee retention over new hiring and focus on developing existing employees. Employee retention can help to save costs associated with recruitment, onboarding, and training of new employees while also helping to maintain a talented workforce.

Focus on Employees’ Mental Health

Employee satisfaction is a critical factor in employee retention. Providing employees with a healthy workplace environment and supportive leadership can help ensure that employees stay with the organization for longer.

Shift Focus on Skill-Based Hiring and Development

HR departments should focus on skill-based hiring and development instead of traditional performance metrics. This shift in focus will allow organizations to select better-suited candidates for their roles, improve employee retention rates, and reduce overall turnover costs.

Emphasize Soft Skills Training

A key strategy when it comes to improving employee retention is emphasizing soft skills training. Soft skills such as communication, problem-solving and critical thinking, creativity, team collaboration, leadership development, and conflict resolution are essential for success in the modern workplace. Training employees on soft skills can help them to become more effective and productive at their job, leading to higher employee satisfaction rates and lower turnover rates.

Pay Scale Transparency

Pay scale transparency is also an important part of employee retention strategies. By giving employees access to their salaries and pay scales, organizations can ensure that all employees are paid fairly. This transparency will help improve morale and create an environment where employees feel valued and respected, increasing their likelihood of staying with the organization for longer periods.

Hybrid Work Culture

HR departments should also focus on developing a hybrid work culture that allows employees to work from different locations. This can help organizations save costs associated with traditional office spaces and give employees more flexibility. This shift in working habits can improve employee satisfaction and increase retention rates.

How Soft Skills Training Helps to Increase the Employee Retention Rate

Soft skills training can help improve employee performance and contribute to higher employee satisfaction and lower turnover rates. Soft skills also help to create an environment of trust and respect between employees and managers, which can help to improve employee retention.

Helps Improve Work Culture

Soft skills training can help to improve the overall work culture within an organization, as it encourages employees to be open and honest with each other. This training can lead to increased creativity and innovation, reduced conflicts between staff members, and improved performance.

Improves Team Communication

Soft skills training can also help to improve team communication and collaboration, as it encourages employees to listen to each other’s perspectives and work together towards a common goal. This can lead to more effective teamwork, increased productivity, improved customer service, and a better working environment.

Helps Build Leadership Skills

Improving the soft skills of upper management is key to employee retention. This includes training in conflict management, team management, motivating employees, and empathy. Having a well-trained leadership team also helps build a sense of trust between management and employees, leading to higher job satisfaction rates and increased employee retention.

Helps Employees Maintain Work-Life Balance

Soft skills training can help employees maintain work-life balance by teaching them methods for managing stress, improving productivity, and finding the right balance between work and personal life. Employees who can find a healthy balance between their professional and personal lives are more likely to stay with an organization for longer periods of time.

Overall, employee retention strategies for 2023 should focus on creating a positive work environment, improving soft skills training, emphasizing skill-based hiring and development, increasing pay scale transparency, and developing a hybrid work culture. By focusing on these strategies, HR departments can ensure that employees stay with the organization for longer periods of time and improve overall employee satisfaction rates.

The Soft Skills Group specializes in soft skills training and employee retention. We provide tailored workshops focusing on improving communication, teamwork, leadership, conflict management, motivation, and empathy to help organizations create an inclusive work culture and boost employee productivity. Contact us today to find out more about our employee retention strategies for 2023!

Sheldon Kawarsky

Sheldon has over 20 years of experience holding manager and director roles in the private and academic sectors, focusing on business development and fostering relationships with companies, universities, government organizations, and venture capitalists. His strength is in relationship building and clarifying the needs of clients to ensure their training maximizes their return on investment.