Innovation has long been cited as a driver of long-term revenue and profit growth in organizations. However, studies are now showing that there is also an increasing relationship between innovation and employee retention.
In a recent study published by talent solutions provider, Futurestep, the more than 4,000 skilled employee respondents seemed to be sending companies a very clear message: that innovation seen in strategies for recruitment, employee development and employee retention greatly impacts the employee relationship.
According to Futurestep CEO, Byrne Mulrooney, the study defined innovation as change, improvements and forward-thinking. Employees were seen to be looking for innovation from the very first encounter with the organization during recruitment. Then they expected to continue seeing it in the organization’s employee development plan. And finally, it was equally important that they saw innovation in the company’s retention programs as well.
Of the respondents, only 36% thought that their current companies were innovative. And in another survey done on over 800 HR professionals, over 74% said that they believed their organizations could do more to foster innovation for them to attract and retain talent.
The demands on innovation may seem particularly high. But not taking this message to heart could have huge detrimental impacts to the total organization. In recruitment, innovation is more likely to create a successful impact on a potential recruit. Even happy employees are not immune, with 55% saying they would consider leaving their satisfying jobs if they were approached with innovative recruitment methods.
In development, 44% of employees say that they will leave their jobs if they see no innovations in store of them.
And don’t forget that all human to organization contact points that perceive innovation has a bearing on the overall company brand. Employees and recruits are possible consumers too. And they can advertise so much by the virtue of word of mouth. So an organization’s innovation or lack thereof, can give either a benefit or detriment, respectively, to your company’s total image as well.
For a slight counterpoint, see this post on the danger of employment branding.
You can download the full report from Futurestep here.