Sri Lankan Organisations Have A Retention Problem That they Can't Pay Our Way Out Of

As leaders in Sri Lanka, we've faced some tough times, and the road ahead might not be  any easier. We are tired of hearing how much ‘re-building’ there is still to be done and yet  the reality remains. 

It is true that today much of our talent is being drawn to opportunities offshore. But it is  also true that, as leaders, we have a strategic opportunity to focus on the management  teams we have in place and look at motivating and up-skilling them to reach their full  potential in the second half. And the good news? This requires a shift in mindset, not in  bank balance.

The Size of The Problem

Globally, businesses are losing a staggering “one trillion dollars in productivity” each year,  according to the Gallup State of Workplace Report 2023, due to staff disengagement and  low empathy in the workplace. Furthermore, nearly 80% of employees worldwide are  actively disengaged in their work, despite efforts from companies to pay their way out of  the problem. In Sri Lanka, while our part of this loss might be smaller, it could still be  costing us up to $1,000,000 an hour in missed opportunities.

The True Cost of Turnover

We know that turnover can be a significant challenge for businesses. It not only takes a  toll on the financials but on our overall growth and success within that financial year. We  lose valuable experience, reliable winners, innovative thinkers, and effective problem  solvers - impacting our ability to thrive. Moreover, this turnover strains client and  customer relationships, loyalty, and team morale. So how do we stop it?

Understand The Reality 

Our workforce continues to face a multitude of daily challenges that impact their  commitment to work, not limited to our local economic and political realities but the  broader world they live in. As leaders today, we need to re-evaluate our workplace to  meet the holistic needs of our people, beyond just financial benefits, in order to empower  them to perform at their best across social, economic, personal, and health realms.

The Return on Holistic Benefits

Effective benefits, such as sustainable initiatives to improve workplace wellbeing and  support for employees' financial planning and work-life balance, can yield great returns.  From evaluating employee wellbeing (and no that doesn’t mean free yoga classes but  sustainable initiatives to improve workplace wellbeing) to considering staff’s ability to  effectively financially plan their future, navigate a promotion of integrate work and family.  Recent findings for example, by the Boston Consulting Group, showed that organisations  that offer childcare benefits to male and female staff saw returns of up to 425% of their  cost. This held true regardless of industry, company size, employee mix, or benefit type.  Above-average health insurance policies also led to higher performance, lower  absenteeism, and improved output, according to McKinsey. And surprisingly, data shows  that most employee departures, 52%+, could have been prevented by better  management or improved business policies.

While increasing salaries might fix short-term issues, retaining loyal and motivated  employees in the long run in our domestic market will require more than a financial fix.  Investing in employee retention strategies that empathise with employee realities and that  are centered around meaningful engagement and value alignment, is crucial. Without  these in place, your competitors will lure away your talent before you revise their pay check.