Talent retention in a highly demanding Canadian workforce market
Significant workforce shortage has become a reality in Canada and the trend will intensify over next
several decades. To address the challenge, Canadian organizations should implement innovative
strategies for workforce retention. IEP students need to develop people management, employee
engagement and retention skills to succeed in a fast-paced Canadian environment.
Employee turnover is estimated to cost 1.5% of annual salary budget of organizations and include direct
separation, replacement and orientation costs, and indirect productivity decrease. Besides, when a
business loses employees, it loses competencies, experience and “corporate memory”. As human capital
becomes the most significant resource in Canadian fast-paced and highly competitive environment,
employee retention becomes an issue, affecting productivity, profitability, and service and product
quality. Thus, employee retention programs become significantly important in the Canadian market.
Not only organizations, but employees view themselves as investors, as they invest their human capital
(knowledge, skills and experience) into organizations. They expect to get something more than salary
and also estimate return on their investment (ROI) based on their personal values, economics and social
needs, which depend on their generation (demographic) characteristics. Organizations that guarantee a
high rate of return on investment will have the greatest success in retention.
To efficiently manage organization’s human capital, managers are constantly monitoring their return on
investment (ROI) of talent replacement and retention to prioritize further development of retention
Creating engaged employees of all generations is key to retention strategy. Employer branding which
distinguishes a company from the crowd by basing itself on values, collaborative culture and employee
inclusiveness in management and Employee Value Proposition (EVP) based on a robust two-way
internal communication platform will build a sense of ownership and belonging among