For over a year now, workers have been quitting their jobs at high rates in what many have called the “Great Resignation.” Inflation has only compounded this problem in recent months as employers scramble to raise pay in efforts to boost retention – a strategy that too often fails to match inflation’s pace. This increased spending combined with the continued attrition of workers is creating one of the most challenging talent markets to date.
To remain competitive and drive growth in this difficult market, private equity leaders will need to attract and retain top talent while facing significant wage growth pressures. An effective strategy for succeeding amid a narrowing talent market includes establishing a solid organizational culture and moving from a model that expects all employees to fit one mold to one that emphasizes purpose. These tactics have the ability to make companies stronger even after inflation subsides.
Leverage Organizational Culture to Improve Retention
Given today’s inflation, boosting wages may seem like the obvious solution to retaining talent. While that may be necessary in some cases, a more viable method to retain talent is to create and strengthen company culture. The absence of meaningful work was one of the top motivators for employees who quit their jobs to take on a new role, according to a recent McKinsey study. Lack of inspirational leaders and support at work were also cited as common reasons for leaving. Companies that do not provide the meaning that employees seek or who fail to adjust toxic work environment...