‘The secret to long tenures lies in work cultures, development, recognition, and a sense of purpose,’ says Moody’s SVP

The HR sector is currently navigating complex challenges; changing working patterns, employee wellbeing, upskilling workers, DEIB expectations, and the impending anticipation of AI are just some of the factors that need to be taken into consideration. 

If these challenges are left unmet, they may have a impact on employee retention – an area that Moody’s Senior Vice President, People Management, Mel Maguire is particularly passionate about.   

In an exclusive conversation with UNLEASH, Maguire shares her told top tips on how HR leaders can retain their workforce, while fostering an environment where employees want to stay in.

The secret to successful employee retention

Employee retention is paramount for business success – there’s no denying that.

Not only does retaining skilled employees minimize recruitment costs, strengthen team cohesion, and promote productivity, but it saves businesses money, too. 

In fact, in a recent study, Workhuman and Gallup estimated that replacing leaders and managers costs around 200% of their salary, employees in technical roles costs 80% of their salary, and replacing frontline employees costs 40% of their salary. 

To reduce turnover, Moody’s Maguire believes there’s a couple of key factors HR leaders can do. 

Mel Maguire, SVP, People Management, Moody’s

“The secret to long tenures often lies in a combination of factors including a positive work culture, opportunities for growth and development, recognition and rewards, and a sense of purpose in the work,” she begins.

“At Moody’s, we focus on these areas to ensure employees feel engaged and committed over the long term.

“We consistently connect with our employees in this area to seek their feedback and ensure that it is incorporated in our employee value proposition.”

But retaining employees doesn’t mean that their movement within a company has to be linear.

Maguire believes that by encouraging employees to move horizontally, employees are able to gain a broader understanding of the business, while diversifying their skills and finding new areas of interest and expertise.

If done correctly, horizontal movement within a business can lead to increased job satisfaction and retention,” she expands.

“HR leaders can support this by promoting a culture of learning and growth, providing resources for skill development, and creating systems that make internal opportunities accessible.”

To encourage employees to seek new roles internally rather than externally, Maguire advises that organizations should offer clear career paths, mentorship programs, internal job fairs, and regular discussions about career goals and opportunities. 

This, she believes, will not only help to retain talent, but also ensures employees feel valued, with the ability to envision a future within the company, too.

What’s more, another key way to retain staff is by offering a wide range of inclusive policies. For example, Moody’s recently launched their Global Parental Leave Policy which offers 16 weeks of full pay. 

“This is significant as it demonstrates a commitment to our employees and their families and is designed to provide essential time and support needed to welcome a new family member.”

Inevitably, some employees will still find job opportunities elsewhere. But rehiring former employees – known as boomeranging – also brings many different benefits to businesses. 

Employees that have previously worked for us have already grasped the company’s processes and culture – which we are immensely proud of! 

“This prior experience allows both Moody’s and the returning employees to have an increased confidence in their success.”

For employees, Maguire explains that it presents an opportunity to come back to a familiar setting with new skills or experiences acquired elsewhere. 

By endorsing boomeranging, Moody’s highlights its appreciation for previous employees and acknowledges that career journeys are often non-linear, with external experiences providing fresh insights and value to the organization.

Incentivizing employee retention

Although we looked at different paths employees can take to aid retention, UNLEASH wanted to gain a better understanding of incentives that businesses can offer.

For Maguire, fostering a culture of growth and development is of paramount importance. 

“Employees are more likely to stay with an organization that invests in their professional growth and personal development,” she highlights.

“This includes not only providing opportunities for vertical advancement but also encouraging lateral moves that allow employees to explore different roles and departments.”

This falls under the umbrella of facilitating continuous learning, skill development, and career mobility. 

In doing so, HR leaders can create an environment where employees feel valued and see a clear future for themselves within the company. 

Employee wellbeing also must not be overlooked – especially now remote and hybrid work models are more common. 

It’s crucial to ensure that employees’ wellbeing and work-life balance are prioritized,” Maguire insists. “This involves more than just offering flexible working hours; it’s about creating a supportive culture that recognizes the importance of mental health.”

One way in which companies can support this is by implementing wellness programs, while providing access to mental health resources, and encouraging a culture where taking time off for rest is not only accepted but encouraged. 

By showing a genuine concern for employees’ wellbeing, Maguire believes that organizations can significantly improve job satisfaction and retention.

Finally, Maguire shines a light on the importance of effective communication and recognition, stating they’re “key” to making employees feel valued and engaged. 

“Businesses need transparent communication about their vision, goals, and how each employee contributes to these objectives,” she explains.

“Recognizing and rewarding employees for their contributions, whether through formal recognition programs, performance bonuses, or even simple gestures of appreciation, can have a profound impact on morale and loyalty.”

Workday and Gallup’s research supports this idea, as it states that employees who receive high-quality recognition are less likely to leave their jobs, and well-recognized employees are 45% less likely to have turned over two years later.

As a result, Maguire concludes: “HR leaders should strive to create an open, inclusive, and appreciative workplace culture where feedback is encouraged, and achievements are celebrated.”

With this in mind, are there factors you could implement to increase employee retention at your business? And do you employees feel recognized and safe to share their feedback?