The Tennessean

A 3 percent statewide unemployment rate means employers will have to work hard to retain employees.

It’s an employee’s market out there.

With Gov. Bill Haslam’s recent release of unemployment numbers for the state – 3 percent statewide and 2.2 percent for Davidson County – many Middle Tennessee employers are looking hard at their retention strategy.

According to a fall 2016 MetLife survey, in a tightly competitive labor market, keeping top talent satisfied is the No. 1 challenge employers face. From human resource managers to CEOs, now is the time to ask: What is our retention strategy – and how well is it working?

The millennial generation is now the largest in the workforce – the oldest are celebrating their 35th birthdays this year – so employers are beginning to pay more attention to preferences these workers have identified as important: flexible work schedules, collaborative teams and regular, informal feedback. Stretch assignments and the opportunity to work across the organization via cross-training and multiple-department teams is another perk millennials report as a differentiator when choosing where – and for whom – to work.

Benefit offerings should also be examined for what’s valued by your workforce and what’s competitive in the market. Benefits Specialist Magazine recently reported one in three millennials has turned down job offers because the benefits package wasn’t competitive enough.

But what about retention for our overall workforce? How can we keep our teams together in Middle Tennessee’s tight talent market?

Consider Tiffany Coursey, who manages the HR department for Nashville real estate services firm Holladay Properties, and is the president of the Middle Tennessee Society for Human Resource Management. She says Nashville is by far their most challenging recruiting market. Low unemployment rates mean less active and more “passive” job seekers – qualified candidates who may be interested in talking to other employers but are otherwise employed.

Passive recruiting usually involves longer relationship-building, more extensive negotiating and creating enough trust for the candidate to leave their current position.

Employers must re-evaluate their retention strategy. For example, Coursey has been working with her leadership team to create more flexible policies, schedules and working conditions. Asking employees for feedback has also helped the company reexamine its talent management process and benefits package.

A few other tips for employers reexamining retention strategy:

Keep every employee connected to what you do. Train managers to talk about how each team member’s role is linked to the success of the department and the organization.

Train managers to talk about how each team member’s role is linked to the success of the department and the organization. Talk about the future. From CEO to supervisor, train and encourage conversations and other internal communications about the future of the organization, departmental strategic plans and career paths for each team member.

From CEO to supervisor, train and encourage conversations and other internal communications about the future of the organization, departmental strategic plans and career paths for each team member. Ask what’s important. Know your population and what your employees value most. Employee surveys and exit interviews can help identify which benefits are most valued, which are off the radar (but may be valued) and which aren’t worth having. Asking can also reveal what your employees know is being offered by other employers.

Know your population and what your employees value most. Employee surveys and exit interviews can help identify which benefits are most valued, which are off the radar (but may be valued) and which aren’t worth having. Asking can also reveal what your employees know is being offered by other employers. Benchmark your benefits package. Utilize benchmarking data to compare what you offer versus what your competitors may be providing to lure your top talent away.

Kellie Conn, SPHR, SHRM-SCP, is the chief strategy officer atParadigm Group, Middle Tennessee’s largest independent employee benefits consulting firm.