Talent retention will challenge companies this year, report finds

Human resource (HR) professionals in the UK expect talent retention to be a considerable challenge for their organisations this year, as well as the top priority for employers, according to a survey of 300 HR decision-makers.

The survey report from HR software provider Ciphr found that 51% of HR professionals across industries and company size believe that talent retention is, or will be, the biggest challenge facing their organisations in 2024.

Retention concerns are rife among larger organisations, the report noted, with 57% of HR professionals identifying “retaining employees/keeping top talent” as the top challenge, ahead of providing a good work/life balance for employees (55%), and meeting employees’ pay expectations (54%).

For HR survey respondents in the accounting, banking, and finance sector, providing a good work/life balance is the focus, with 61% in this sector saying it is the biggest obstacle, closely followed by talent retention (55%).

While retention is top of mind across industries, investing in employees is the main area of concern in smaller organisations, the report said. A top concern for smaller employers (those with fewer than 50 employees), is providing regular and ongoing training and development opportunities (45%).

Other concerns include recruiting qualified talent and encouraging employees to attend the physical workplace (a specific number of times a week), with 43% of HR professionals identifying those two areas as challenges this year.

Employee development challenges are shared by medium-size companies (those with 50 to 249 employees), the report said. HR professionals at these organisations say that providing a good employee experience (46%) and internal promotion opportunities to fill skills gaps (46%) will be a challenge in 2024.

In response to ongoing retention challenges, HR professionals in the UK rank retaining employees and keeping top talent (16%); recruiting enough qualified talent (15%); supporting employees’ mental health and wellbeing (13%); and meeting employees’ pay expectations (12%) as their top priorities this year.

— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.

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