Managing workforce velocity: Improving employee retention [New report]
In the post-pandemic labor market, workforce velocity is high. Quit rates remain well above pre-pandemic levels with the number of open positions continuing to outpace available people. Workers have options, so CEOs need to know how to retain their top talent. The pace of hiring may have slowed, but it is temporary as the frenzy will return once the next growth cycle begins.
The Q1 2023 Vistage CEO Confidence Index survey captured input from 1,405 CEOs and key executives of small and midsize businesses. In the survey, we captured the top improvements they have made to increase employee retention:
- 82% report adjusting base compensation, with 6% planning to do so.
- 53% report developing their leaders, with 30% planning to do so.
- 57% report improving company culture, with 20% planning to do so.
- 47% report developing their workforce, with 29% planning to do so.
To help CEOs address the important issue of retention, our latest report, Managing Workforce Velocity: Improving Employee Retention, focuses on four recommendations for keeping your top talent, complemented by expert perspectives from thought leaders in the Vistage community.
- Provide competitive compensation
- Invest in workforce development
- Define, model and reinforce culture
- Understand and drive engagement
While the talent shortage still prevents 49% of small and midsize businesses from operating at full capacity, this is an improvement from 72% a year ago. As CEOs navigate the recession ahead and plan for the next growth cycle, employee retention will be the foundation for long-term, profitable growth. Stability is a hallmark of a high-performance workforce, one that’s capable of scaling to meet peak demand while maintaining its culture through changing business cycles.
CEO confidence stalls ahead of economic slowdown [Q1 2023 CEO Confidence Index]