Why is Everybody Leaving? 8 Equitable Steps to Retain Your Diverse Talent

DEILeadership StrategiesDiversityLeadershipSuccession PlanningCulture RiskConsumerEducationFinancial ServicesGovernmentHealthcareIndustrialNonprofitPrivate CapitalProfessional ServicesSocial ImpactTechnologyVenture Capital and GrowthHuman ResourcesDiversity, Equity, and Inclusion AdvisoryAssessment and BenchmarkingDevelopment and TransitionCulture Analytics
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June 27, 2022
1 min read
DEILeadership StrategiesDiversityLeadershipSuccession PlanningCulture RiskConsumerEducationFinancial ServicesGovernmentHealthcareIndustrialNonprofitPrivate CapitalProfessional ServicesSocial ImpactTechnologyVenture Capital and GrowthHuman ResourcesDiversity, Equity, and Inclusion AdvisoryAssessment and BenchmarkingDevelopment and TransitionCulture Analytics
EXECUTIVE SUMMARY
Using proprietary data, RRA found inclusive leadership practices demonstrated the strongest predictor of strength of workforce retention program.
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While the increasing economic headwinds may dampen hiring demand, organizations should not make the mistake of assuming economic challenges will not deepen existing retention problems, or worsen the impact on underrepresented groups.

Employee turnover continues to be a growing concern. 64% of global executives say that employee turnover in their organizations has increased over the past 12 months, according to a recent survey of executives conducted by Russell Reynolds Associates (RRA) . 

The same survey found that the leadership ranks are not immune to this trend. 56% of executives said they would be willing to change employers for the right opportunity today- particularly next-generation leaders, posing a threat to the succession pipeline. This becomes more troubling when we take into consideration the risk of departure of underrepresented groups, who make up an already smaller proportion of the workforce, and have even slimmer representation in leadership. Without the necessary action to course-correct the engagement and retention of underrepresented executives, diversity, equity, and inclusion (DE&I) efforts could be at significant risk.

We seek to understand why underrepresented employees are leaving. Where do executive leaders fit into the picture? And what role can equitable talent practices, enabled by inclusive leadership, play in curbing this trend?

Using our analysis of equitable talent management practices, we share the eight critical practices that shape retention, with inclusive leadership sitting at the core.

Using our Talent Management Equity (TME) framework, which identifies bias and inconsistency in talent practices, RRA has uncovered where organizations are getting it right and wrong in talent practices and the impact this is having on employee retention.

RRA’s TME framework is made up of three core elements that mirror the talent lifecycle: recruitment, development, and retention.

Figure 1: Relative Importance of Equitable Talent Management Actions on Strength of Retention Program

% of impact on effectiveness rating of equitable talent retention program

 

 


 

Authors

  • Cory Schneider is a member of Russell Reynolds Associates’ Diversity, Equity & Inclusion practice. He is based in Los Angeles.
  • Jemi Crookes is a member of Russell Reynolds Associates’ Center for Leadership Insight. She is based in Washington DC.
  • Nisa Qosja is a member of Russell Reynolds Associates’ Diversity, Equity & Inclusion practice Knowledge team. She is based in London.
  • Tina Shah Paikeday is a member of Russell Reynolds Associates’ Diversity, Equity & Inclusion practice. She is based in San Francisco.
  • Yen Ling Shek is a member of Russell Reynolds Associates’ Diversity, Equity & Inclusion practice. She is based in Los Angeles.

 

 

 

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Why is Everybody Leaving? 8 Equitable Steps to Retain Your Diverse Talent