What do you believe is the biggest challenge for employers when it comes to employee retention in 2023?
In 2023, the biggest challenge for employers is how do we attract and retain a highly skilled workforce and become future-fit in the face of challenging market conditions. From a slowing economy, to tensions with China, climate change and the emergence of new technologies we are seeing organisations struggle to effectively compete for the best talent.
Employees are more discerning than ever, and are looking for more than just a paycheck. While this is not a new trend, the emergence of people looking for roles that align with their individual purpose and values has increased exponentially.
New recruits are holding businesses to account on these promises and are voting with their feet if their new jobs are not delivering on the promises made. This is an increasing cost for businesses, which are facing a cost constrained environment.
The opportunity here for organisations is to differentiate through their purpose and values. When an organisation becomes truly purpose-led and values-driven it gives them the opportunity to move away from the rational reasons to work (e.g. my basic needs are met) to unlocking the emotional drivers (e.g. motivated by why an organisation exists). The latter unlocks greater value for the individual employee, but also greater value for the organisation. In fact, many investors are looking at this as an indicator of intent for long term value creation.
Do you have any insights on how employers can build a “purpose-led, values-driven” organisation in 2023?
Building a purpose-led and values-driven organisation in 2023 will deliver a distinct competitive advantage for businesses looking to navigate a challenging economic environment. Here are three call-outs that will help you on your journey:
1. Define your purpose, but it doesn’t have to be holier-than-thou: Your organisation’s purpose should be a clear and compelling statement that explains why you exist and provides a clear north star to guide decision making and strategic investment. Be careful not to fall into the “social good” trap if your business cannot deliver on the promise; this will be very costly down the line and your people will call BS. The key is to balance the rational and the emotional when defining your purpose.
2. Make your values actionable, ownable and memorable: Your values should clearly articulate how you need your people to show up in order to deliver on your strategic aspirations. The key here is to focus on behaviours (things you can action) and ensure that they truly distill what makes your business special (ownable). Finally, you need to make these memorable so that they can become embedded into everyday conversations and feedback.
3. Measure your impact: Holding yourself to account is a critical step to ensure that you are delivering on the promises you are making to your people. Utilising a combination of passive (e.g. microsoft teams data, glassdoor sentiment) and active (e.g. surveys, employee listening sessions) datasets will allow you to proactively manage your progress and ensure that you are realising the maximum return on investment.
Nick Tucker is the Head of Scale Up Ventures at We Are Unity, a psychologist and consultant who specialises in business strategy, culture and leadership. For over a decade, he has partnered with some of Australia’s most iconic institutions, major corporations and start-ups to help them transform to reach their potential.