Why Athletes & Veterans Will Ease Your Retention Crisis

Understanding the Retention Dilemma: Myths vs. Reality

The reputation that some young professionals have earned for themselves with older employers seems to be that they are fickle, they flit between interests or industries seemingly on a whim. The older employers might point at young employee epidemics like ‘Quiet Quitting’ for assumptions like this – sticking only to the letter of their tasks and not going the extra mile. The reality of this unfortunate situation may be that young professionals aren’t seeing their efforts or talents rewarded within their companies, and external factors like pandemics or cost of living crises have stunted figures like job reallocation rates (via CMA report on gov.uk, October 2024), that normally reflect a healthy cycle of employees moving from one firm to another.

Gen Z may have a faster turnover than other generational counterparts, at an average of 1.7 years per job, but this is in large part due to external factors, rather than some kind of personal volatility. In fact, even in comparison to those who entered the job market at the time of the Global Financial crisis, graduating in 2008, 2020 graduates are more concerned with ‘job roles and job security’ in comparison to 2008’s ‘job location and commute duration’ (Donald 2023). This suggests that the so-called revolving door of Gen Z employment may have less to do with their lack of loyalty and more to do with how well employers support, develop, and retain their talent. For employers, investing in retention strategies is critical. With innovative training and recruitment support either through third-parties like add-victor, or internal departments, it is incredibly important, especially for smaller firms, that they hold on to skilled talent when they get it.

Basco et al. (2023) theorise that the relation between companies investing in talent management departments and industry competition is proportional. When competition is low, ‘family firms are less likely to invest in talent management.’ Conversely, ‘when industry competition increases, talented employees may prefer to join rival organisations; thus, talent management becomes an insurance against losing talented workers.’ You would be confused, then, to look at the exit rates of firms of late, and see that they have risen above entry levels for the first time since 2010 (via CMA report on gov.uk, October 2024). This would typically demonstrate a decrease in competition between firms – there are simply fewer firms to compete between. However, McKinsey’s 2022 survey revealed that 48% of people who had quit their jobs in the previous year had changed sector. The competition exists now not just between firms providing the same services, but between firms across sectors.

That would explain the drop in job reallocation rates below their linear trend. Job reallocation rate tracks the dynamism of the job market by seeing how many people leave their job, creating vacancies, and then fill other vacancies themselves. Jobs are being created, but not necessarily filled in at the same rate, as industries fluctuate between being oversubscribed, and littered with vacancies (via CMA report on gov.uk, October 2024).

Building Loyal Teams with Talent Who Know the Value of Growth

What relevance, then, do athletes and military veterans have in addressing employee retention? They exhibit unique qualities that enable them to thrive in roles over the long term, including resilience, adaptability, and a focus on personal growth. However, their strong mindset toward progression means that when career development opportunities are absent, it’s no surprise that even high-potential hires, feel disengaged and seek opportunities elsewhere. Employers who prioritise clear pathways for progression can unlock the long-term commitment and extraordinary potential these candidates offer. While it may seem obvious that rewarding talent leads to retention, a disconnect exists between employees’ expectations and employers' practices. Employees now more than ever crave job security, while employers (especially smaller and more risk-averse firms) desperately need to retain the talents they invest in. Addressing this misunderstanding is key to closing the retention gap.

Two factors are incredibly important for employee retention in the post-pandemic working era. One more practical than the other, cost of living has inflated well beyond wages (relatively speaking). The rate of increase for private rental housing costs has increased another 6.2% in the year to January 2024, and for those who rely on early career salaries to fund this, there is still a significant wage discrepancy. The other reason, perhaps less practical, is that employees are more reliant on positive reinforcement and personal fulfilment than before, when company perks may have provided more incentive to stick around. If firms don’t invest in their talent management department, therefore, or reward talented employees adequately, this seems to become the key reason for losing out on those who have just been trained.

The fulfilment and positive reinforcement will resonate especially with the veterans and athletes on add-victor’s platform. Not only are they drilled to encourage teammates (and eventually colleagues), but are similarly raised to respond to coaching or traditional man management.

The corporate scape is moving towards prioritising the combination of soft skills and training. Listings for banking, professional and financial services have seen a 22% decrease in the use of the phrase ‘previous experience’ (Bloomberg 2024), while ‘Excel’ is highlighted as having dropped by 40%. In contrast, the soft skill of learning agility and the ability to upskill has surged, becoming the second most valuable for employers in the same report. It has also been documented that skills-based hires have a 20% higher retention rate than other hires, so it is no wonder these businesses are shifting as they are (Harvard Business School and Burning Glass Institute 2024). It seems likely, then, that it will soon become the norm to try and recruit candidates with significant potential, and reward them for the growth they demonstrate, rather than watch the revolving door of entry-level candidates as employees with the potential to change a company walk out the door in return for marginal wage-rises, or increased responsibility.

 Sebastian Page

Sources: 

• Anghel, I. and Farhat, E. 2024. Soft Skills Beat Experience on UK Employer Wish Lists. https://www.bloomberg.com/graphics/2024-01-reed-jobs-report-soft-skills-in-demand/ accessed 16/10/2024
• Basco, R; Bassetti, T; Dal Maso, L. and Lattanzi, N. 2023. 'Why and When do Family Firms Invest Less in Talent Management? The Suppressor Effect of Risk Aversion.' in Journal of Management and Governance (27: 1) p. 101-130
• Donald, William E. 2023. 'Sustainable Talent Pipelines and Person-Organisation Fit: Strategic Insights from UK Graduates' in Career Development International. (28: 2) p. 234-249
• De Smet, A; Dowling, B; Hancock, B and Schaninger, B. 2022. ‘The Great Attrition is Making Hiring Harder. Are You Searching the Right Talent Pools?’ in McKinsey Quarterly. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/the-great-attrition-is-making-hiring-harder-are-you-searching-the-right-talent-pools accessed 16/10/2024.
• www.gov.uk/government/publications/the-state-of-uk-competition-report-2024/the-state-of-uk-competition-report-2024#market-power-and-business-dynamism accessed 16/10/2024.
• https://www.hbs.edu/managing-the-future-of-work/Documents/research/Skills-Based%20Hiring.pdf . accessed 19/10/2024