Retaining talent is crucial for businesses to maintain a competitive edge and achieve long-term growth.
The average cost of employee turnover, based on the average UK salary, is around £11,000 per person, and for more specialist roles, this can rise to up to £100,000. If utility businesses keep experiencing high turnover rates, this cost will soon add up. And with the cost-of-living crisis still causing strains for many organisations, the need to keep staff happy is about more than just evolving into an employer of choice
Aside from cost, however, another reason to focus on talent retention is that it plays a big part in employee satisfaction. And when businesses focus on keeping their employees happy, they naturally will want to stay for longer.
In the utility sector especially, retaining talent is becoming more and more important. In fact, the sector’s the turnover rate currently stands at over a fifth. With there being a constant skills shortage in this sector, it’s vital for businesses to keep their employees close.
To do this, the utility industry needs to make sure their employees feel valued. by building trust and recognition. Here, Stacey Allen-Hayes, Director of Corporate Partnerships at Arden University, lists her top five tips on how businesses in the utility sector can act now to retain talent.
- Invest in good learning and development
A strong way to show you care about your employees is by offering learning and development opportunities that will help them progress and grow in their roles.
According to LinkedIn’s 2024 Workplace Learning Report, companies that prioritise learning see a 27% boost in employee retention.
It’s important here, however, to develop a targeted learning plan. Businesses should aim to tailor what they offer their employees to suit their career aspirations. For some, more intense courses, such as degree apprenticeships, will be much more beneficial. A good learning provider will also make sure their courses are relevant to your industry and your employees. This ensures the business also grows with the new knowledge their employees develop along the way.
- Don’t be afraid of lateral hiring
Businesses should encourage employees to apply for new roles within the company and promote from within whenever possible. Of course, as mentioned above, offering continuous learning opportunities, will create a more effective environment to do this.
Focusing on hiring from within also shows employees that they’re encouraged to try something new or different. This will, again, ensure employees feel valued and keep them on track to meet their career goals with your company.
- Keep open communication
Business leaders estimate that their teams lose an average of 7.47 hours per week due to poor communication. Open communication in the workplace allows employees to feel comfortable sharing their ideas, concerns and feedback. It’s based on trust, transparency and mutual respect, which helps create a positive work environment.
This has ample benefits. It allows workers to understand the company’s goals, objectives, and their role within this. It helps to manage conflicts, enabling employees to feel comfortable speaking up, which in turn, boosts team morale and delivers more creative results.
Again, open communication will allow employees to voice if they want to change aspects of their role or if they’re looking for a new challenge, for example. This will allow you to offer alternative solutions and opportunities to keep them engaged when working for you.
- Promote empowerment
Businesses should give employees autonomy in decision-making, trust them with responsibilities and involve them in strategic discussions. Employees who feel empowered are 50% more engaged than those who feel less empowered. On top of this, the majority of employees value this empowerment to take action when faced with an issue or opportunity at work.
This plays a role in allowing workers to feel trusted and valued, which results in them being more motivated and committed to their roles. Open communication and offering bespoke learning and development opportunities both help with empowerment and will also give your employees the confidence to take action if it’s currently out of their comfort zone.
- Strong leadership
According to the Chartered Management Institute, 82% of new managers in the UK are ‘accidental managers’, meaning they have no formal management or leadership training. This can have a negative impact on employee engagement and return on investment.
Businesses need to make sure they’re training managers to lead with empathy, transparency and fairness. Strong, supportive leaders contribute to high employee satisfaction. Degree apprenticeships are a good way of doing this, as they allow those who already know your business to upskill and learn on the job. They also give them the power to lead with confidence.
All in all, making sure employees feel respected is no easy feat – but with the utility sector becoming more competitive, and with the ongoing skills shortages, it’s vital more effort is made with talent retention. The above strategies should help businesses create an environment where employees feel valued, supported and motivated to stay long-term.
