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Talent retention strategies in a competitive labor market

For some years now we have been observing that competitiveness between companies does not occur only when it comes to attracting more customers for their products or services. There is also a “fight” for talent which is making the labor market become an area in which we must move very carefully.

The vacancy rate in Spain is high. Not as much as in other European countries, but there is a large number of job offers that remain unfilled because the right people cannot be found to fill the positions.

Since finding talent is increasingly complicated, companies are taking measures to have to go to the labor market as little as possible to look for new workers. How do they do that? Working as hard as possible to ensure the loyalty of your employees. So that the talent they already have in the organization does not go somewhere else to work.

Because the departure of an employee no longer only means losing their work skills and abilities, but also having to start a selection process that can be long and, at times, fruitless.

For this reason, one of the most prevailing trends in the field of Human Resources is for organizations to take action to try to retain talent.

Table of Contents

Why is retaining talent so important?

For decades, many companies have had a bad habit of treating their employees as if they were an easily replaceable asset. Luckily, more and more organizations are beginning to realize that this is not the case. Because it turns out that staff members are one of the most valuable assets that any company can have, and it is important to retain them.

As we have become aware that the talent is scarce, the labor market has become highly competitive. A new battlefield in which organizations have to do their best to attract talented candidates and, especially, to retain internal talent.

And this is the best formula for maintain operational continuity, while reducing the costs associated with the selection, hiring and training processes of new employees.

Additionally, as an employee spends time in an organization, they become imbued with its internal culture. You deeply identify with shared values and goals, and this makes you willing to work harder for the common cause. In other words, a loyal employee is more productive than one who has just joined the organization and a person who, although he has been working there for years, does not feel completely comfortable.

To all this we must add the great advantage in terms of business reputation What it means for companies to have a reputation for being good employers and keeping their staff happy. This makes them better valued by talented people who are looking for a new job, but also by consumers themselves, who will be more willing to purchase their products or services.

Strategies to retain talent 

What is it that causes one company to have a high level of personnel turnover and another to maintain that rate at low and stable levels? We do not have a magic formula that explains this phenomenon, but experience tells us that the difference between what happens in one organization and what happens in the other has a lot to do with the way its employees are treated and their working conditions. .

There are many strategies that can be effective in retaining talent, and each organization should be able to find the ones that work best for them. But there are a series of measures that have proven to be very effective:

Professional development possibilities

Even the most talented person in the world will begin to lose performance if their work is the same day after day. This is inevitable, a direct consequence of boredom and lack of stimulation and challenge. As a result, it may not be long before that employee decides to leave to work elsewhere in search of new challenges. 

In contrast, and as a measure to stimulate staff loyalty, companies can establish career and professional development plans. Combining the daily tasks of the position occupied by a person, with training that allows you to assume new responsibilities in the future.

It's about making the employee see that, although at this moment their job may be a little tedious, the organization trusts him and it will provide you with the necessary tools so that you do not have to do the same tasks over and over again during the time you spend within it.

This makes employees feel more motivated and more satisfied with their company. They know that they can progress with time and effort, which is an incentive to stay there.

Positive organizational culture

The culture of the organization and the values that prevail within it are very important in ensuring that staff members feel comfortable working there.

To the extent possible, hire people whose ethical and moral values and convictions identify with those defended by the company. Since this will facilitate adaptation. The employee will feel comfortable, and it will be more difficult for them to consider going to work somewhere else.

Culture is something specific and unique to each company but, as far as possible, we must try to ensure that value diversity, inclusion, and physical and emotional well-being of the employees. Because only in this way can a work environment be generated in which everyone feels comfortable.

Balance between personal and professional life

For all of us, work is essential and necessary. Although working takes up a good part of our time, no one wants it to become the most important thing in their life. Because, apart from professional life, there is a personal life that we must also enjoy. Precisely for this reason, companies that adopt conciliation measures have a greater capacity to retain talent. And employees do not want to risk going to work somewhere else and thereby losing part of their free time.

There are many ways that companies can help employees find a better balance between their personal and work lives:

  • Offer remote work possibilities.
  • Give extra days off on important dates such as your own or your children's birthdays.
  • Establish a flexible schedule system.
  • Establish a system of strict compliance with the schedule so that no one ends up working extra hours.
  • Putting digital disconnection into practice.

Recognition and rewards

Demotivation is one of the main causes of voluntary abandonment of a job. If a person is bored of doing the same thing day after day and does not feel valued, it should not surprise us that they choose to look for a job at another company.

Of the many ways there are to recognize the value of staff members, recognition and reward systems They are among the most popular and effective. Furthermore, there are multiple ways to put them into practice:

  • Economic bonuses.
  • Public recognition before other colleagues.
  • Non-monetary rewards: training, days off, etc.

This recognition not only motivates people, but stimulates your feeling of belonging and makes them feel more linked to the organization. This reduces the risk of them leaving to work elsewhere.

Open and transparent communication

Good communication is an essential pillar for the proper functioning of an organization at all levels, also in Human Resources management, and especially in talent retention.

When employees are not well informed, they end up feeling left out of what is happening and perceive that they are not taken into account. On the other hand, if information flows from top to bottom in a transparent and clear way, a feeling of confidence from which fidelity will derive.

Because each member of the staff can know well the objectives to be achieved and what is expected of him or her. In addition, good communication puts an end to negative rumors related to thorny issues such as layoffs, which can lead to a real rout of the most talented employees.

Well-kept workplace

The work environment is not only influenced by the atmosphere that exists among colleagues, but also by the appearance, distribution, decoration and equipment of the workplace.

If a person spends their daily lives in a dark office, with poor lighting, and using decade-old computer programs, it is normal for them to become fed up and want to leave. On the other hand, a workplace with quality and ergonomic furniture, good lighting, updated software and spaces for collaboration and rest, ensure that going to work is a little more pleasant, thus stimulating employee loyalty towards the company.

Implementing strategies like these that we have seen, always well adapted to the needs of each company and its workers, can make a difference when it comes to retaining internal talent.

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