When you hear about dynasties, people often think of professional sports teams. They’re able to sign, incentivize and keep the right mix of players over a long period of time to win multiple championships – teams like the Yankees, Canadiens, Lakers, Manchester United and the Patriots.
For businesses, building a long-term dynasty can be difficult, as competitors and other companies are constantly looking to poach high quality talent – their own Tom Brady, Magic Johnson or Derek Jeter. Even if companies raise salaries or give out spot bonuses, there’s nothing to prevent employees from leaving the next day.
Now, combine that with the unprecedented level of uncertainty due to the pandemic as people continue rethinking major life choices like where they live or if they made the right career choice. And what is the result of this uncertainty? People are leaving their jobs in droves in what’s being called “The Great Resignation.”
In fact, the U.S. Bureau of Labor Statistics reported that 4.5 million people quit their jobs in March and there were 11.5 million job openings – both record highs since the agency began tracking that data in 2000. Similarly, Gartner says annual employee turnover in the U.S. this year will jump 20% from pre-pandemic levels.
For employers, the data is terrifying. It means the market for the best employees will be increasingly more competitive and at the same time current employees could be looking to make a switch for seemingly greener pastures. Given these labor market dynamics, how do employers make their job offers stand out as well as ensure they can retain their existing team?
At Keep, we view this market as a huge opportunity for both employers and employees, and look to turn “The Great Resignation” into what many call “The Great Retention.”
As we all know from personal experience, there are many factors that go into deciding what you want in a new job or whether to stay with the one you have. Is there room to grow professionally at the company? How is the work/life balance? Are the benefits good? And most importantly, how is the compensation? That’s why employers must find new ways to entice – and retain – talent.
Enter the innovative KeepTM platform and our initial offering of Keep Vesting Cash Plans, which can be used in conjunction with traditional compensation methods to give employees access to cash upfront. Employees have the freedom to use this cash immediately through a 0% APR loan with Keep. They can use it to address any personal financial goals, e.g. paying down student debt, putting a down payment on a new house, paying off a mortgage, investing in retirement, paying for a child’s college, etc. And with the cash vesting over time, employers gain a valuable way to both compensate employees for their contributions while also gaining a commitment from them to stay with the company. And this is a tangible incentive that appeals to most people, of all ages.
For the young, the National Association of Realtors shows more than 50% of home buyers under the age of 36 report that student debt delayed their home buying – and a Fidelity Career Assessment Study found that most of the people changing jobs are younger, with 60% of people ages 25 to 35 reporting they changed jobs in the last two years. Younger employees with decades of their career ahead of them are potentially available for employers–and may be struggling to meet personal goals despite having great jobs or prospects.
For the mature, there are a variety of ways an influx of cash could set one up for a smoother, more freeing future. Reports show that 78% of homeowners in the US are 65 and older, and only 37% of US homeowners are mortgage-free. And with average in-state tuition rising 79% in the last 10+ years, parents and supporters would certainly welcome help from an employer there.
This all presents a huge opportunity for employers to attract and hire loyal employees … and then ‘keep’ them for years to come. And most importantly for employers, growth and profitability require having the right team in place.
What if you could hire the EXACT people you want and need – the 2x, 5x and 10x’ers? You’d probably need fewer employees and/or get twice as much done than you had planned. A team that focuses on performance and contributes every day towards the company’s goals, engages and promotes the company’s culture and understands the company’s industry and trends. This is the professional dynasty companies today need and are looking to build – spending their time on productivity and growth rather than recruiting and retention.
Learn how to unlock the full potential of your business and build your own professional dynasty with Keep.
Rob Frohwein is the Co-Founder and CEO of Keep Financial, a technology company revolutionizing compensation to enhance recruiting and retention – aligning compensation with business objectives, ROI, and performance.