Want to Promote Employee Retention? Supporting Entrepreneurs May Be the Answer…
Despite reports of economic recovery, people must not re-adopt the career understandings of the past. Gone are the days of “employment security”. In fact, most forward thinkers said farewell to this concept long before the commencement of the global recession. The hard truth is this… if you are not preparing for the “what ifs” today, then you are cheating yourself and your family tomorrow.
Having multiple income streams is a requirement and no longer an option. People are exploring entrepreneurship at much higher rates than their predecessors; mostly out of necessity. Whether you have finally gotten a job or still anxiously awaiting the end of an overly extended, temporary free labor pre-employment period, nowadays called the “interviewing process,” many people find themselves financially multi-tasking, identifying ways to turn their hobbies into businesses. In no way is this statement advocating that every hobby has sustainable business potential, however, the ability to monetize an activity you enjoy is creating new opportunities at exponential rates.
With the growing presence of the entrepreneurial trend, employers are also being forced to accept the reality that “moonlighting” is the new norm. Employers will find it increasingly difficult to identify individuals willing to commit 100% of their lives to their organizations from the start of their careers to retirement. The reality is that the accuracy with which company leadership can predict future organizational success, is no greater than the forecasts they can assert regarding the quality, financial impact, or longevity of your career within that organization
So how does entrepreneurship help to brighten this reality? There is a huge opportunity for companies to harness the thriving ingenuity of future talent, by developing employee programs that support the launch of start-up companies founded by their employees.
As radical as this concept may seem, wouldn’t an individual’s commitment to their employer substantially increase if they felt the company had a vested interest in seeing their success inside and outside of the workplace? Since employee turnover is an inevitable aspect of employment, it would be strategically advantageous for companies to proactively identify which individuals have the greatest likelihood of leaving to start or grow their own businesses? Wouldn’t it make sense for a company to entertain providing both financial and/or non-financial start-up resources for their employees.
Let’s consider some of the benefits to an Employee Entrepreneurship Program:
- Increased Employee Retention: An employee will be more committed to a company that cares about their endeavors beyond work responsibilities within the organization.
- Investment Diversification Opportunities for Employers: Since the trend of working and part-time entrepreneurship will continue to grow, employers have an opportunity to gain access to the financial proceeds of their employee’s success through resource investments.
- Increased Recruitment Efficiency: Employers could proactively align their recruitment plans if they are aware of those individuals who may be most likely to transition out of the company to grow their own businesses.
- Increased Talent Utilization: Companies would have an opportunity to improve talent utilization, if they are more aware of the qualities and skill-sets that may be underleveraged in an individual’s current position. What better way to assess the value of your human capital, than to provide a platform for them to openly discuss those skills they currently use outside of the company?
- Increased Employee Satisfaction: Organizations will also find that through this increased talent utilization, they can identify opportunities to place individuals in positions that better align with their desired tasks, interests, and passions.
The day has come when employees may not view their careers as a 20-30 year commitment to the success of their companies. Economic downturn, increased technological capability, and fearless motivation has created an environment where people are looking to plan beyond receiving a paycheck from their jobs. The retirement planning process has been re-defined for the working population. The question is how will organization’s modify their employee retention strategies, to accommodate and effectively leverage the new norms that are driving the career decisions, interests, and paths of tomorrow’s talent.