TALENT MANAGEMENT

With over 50 million Americans quitting jobs in 2022, and half of employees open to leaving their current companies, proactive retention becomes a critical priority for businesses. Moreover, the financial implications, with the cost of turnover averaging about 33% of the previous employee's salary, underscore the urgency of retaining valuable team members for sustained growth and excellence.

 

Statistics show a decline in those numbers in 2023; however, many would argue the decline is not as positive as one might think.

 

According to the U.S. Chamber of Commerce, there is only 62.5% of labor force participation.

• This tells us that many are either choosing not to work or opting for flexible employment opportunities like ridesharing or freelance. 

 

In November of 2023, Uber reported:

• They have 6.5 million active drivers and couriers, which is a 31% increase from 2022.

 

In 2023, Lyft reported:

• 22.4 million active riders, which is a 10% increase from 2022.

• 19% of Lyft drivers also own a business.

 

Additional data reveals:

• 1 out of 3 new hires resign within their first 6 months

• Poor management drives 35% of resignations

• Inadequate development results in an additional 25% turnover rate

Some attribute these statistics to the pandemic, yet a constant in the workforce remains: people leave companies due to ineffective leadership or processes. While the pandemic brought unprecedented challenges, it served as an effect rather than a cause.

• The root cause stems from companies failing to adapt their business models to the evolving climate, continuing to struggle with meeting goals and employee needs.

 

By prioritizing talent management, organizations can support ongoing leadership development initiatives and ensure the implementation of strategic and consistent practices. This involves aligning workforce dynamics with organizational objectives, fostering a culture of continuous improvement, and providing ample opportunities for employee growth and development. Ultimately, investing in talent management not only enhances organizational performance and competitiveness but also cultivates a more engaged and motivated workforce poised for long-term success.