The Statistics Finland’s Labour Force Survey shows, that the amount of employed persons had increased by 86,000 in September 2022 when compared with September 2022. A decrease can similarly been seen in the amount of unemployed people over the period in time. (SF 2022)
The Finnish labour market is also affected by the slowing down of population growth, and a rapidly aging population. In 2000 the share of individuals aged 65 years and older was 15 percent, it however increased to 22 percent in 2019. A further increase to 28 percent is expected by 2050. The demographic shift is occurring at such a fast speed that Finland ranks among the five fastest ageing populations worldwide. (United Nations 2019). Numerous industry sectors report shortages in employees. (Elo 2022; Launis 2022). For an organization this means greater focus on as well as an increased effort with regards to talent retention.
Talent retention
A lot of companies assume that compensation is key to retaining employees. However, financial compensation on its own rarely retains key performers. Key performers need to feel special, rather than just play the role of a well-paid contributor. Talent should, in addition to pay, be appreciated by listening to the ideas brought forward, supporting their development and growth and also praising them as often as possible. The leader is thus to make them feel special, a valued contributor to he strategic goals of an organization. (Martin 2022, 132‒133).
Clinton (2022) notes that having a best friend at work is strongly linked employee retention as well as to business outcomes, including improvements in profitability and safety. Work place productivity is increased by close friendships. The underlying reasons for this are that friends are more committed and communicate better and also encourage each other. Furthermore, personal relationships have a positive effect on the job satisfaction of the average employee. Employee relationships rank at the top of workplace domains when explaining job satisfaction variation.
There are several ways by which lasting friendships can be built within an organization. An increase in face-to-face communication rather than email. Arranging meetings, work rotation or working spaces can also enhance social connections. Encouraging successful group work also enhances relationship building. Employees want to feel the joy of creating something new while having fun. Friends working together trust each other, they accept and forgive mistakes. They are also very likely to engage stakeholders, be more productive and share ideas whilst having fun. Having fun also boosts innovation capabilities. (Clinton 2022, 2‒4).
What should furthermore be noted is that you cannot force people to be friends. Meetings, policies or training or timesheets can be mandatory, this does however set the base for a friendship. (Clinton 2022, 5). The post pandemic leadership is faced with a part hybrid working environment, where old means of creating a productive safe organizational culture no longer necessarily apply. Post pandemic work is increasingly hybrid, allowing employees greater flexibility. The inclusion of hybrid workers and the construction of a safe working culture are key factors not only in employee retention but also in gaining a competitive advantage.
Author
Dr. Kristiina Brusila-Meltovaara works as a principal lecturer at LAB University of Applied Sciences.
References
Clifton, J. 2022. The Power of Work Friends: Data shows that having a best friend at work is strongly linked to business outcomes, profitability, safety, inventory control, and employee retention. Harvard Business Review Digital Articles, 1–6.
Elo, E. 2022. Farmaseutti saa paikan! Apteekkien työntekijäpula pahenee. Apteekkari. Cited 2 Nov 2022. Available at https://www.apteekkari.fi/artikkelit/farmaseutti-saa-paikan-apteekkien-tyontekijapula-pahenee.html
Launis, M. 2022. Jokainen tämän kuvan rasti merkkaa yhtä alalta poistunutta tapahtuma-ammattilaista. Avecmedia. Cited 22 Oct 2022. Available at https://www.avecmedia.fi/tapahtumat/jokainen-taman-kuvan-rasti-merkkaa-yhta-alalta-poistunutta-tapahtuma-ammattilaista/
Martin, R. L. 2022. The Real Secret to Retaining Talent. Harvard Business Review, 100(2), 126–133. Cited 1 Nov 2022. Available at https://web-s-ebscohost-com.ezproxy.saimia.fi/ehost/pdfviewer/pdfviewer?vid=5&sid=7f698664-5ee6-463c-9218-cc23c98cf050%40redis
StatisticsFinland (SF). 2022. Number of employed persons grew in September 2022 from the year before. Helsinki: StatisticsFinland. Cited 1 Nov 2022. Available at https://www.stat.fi/en/publication/ckttr5dd4848e0c123dhmc3m9
United Nations. 2019. World population prospects 2019. Cited 2 Nov 2022. Available at https://population.un.org/wpp/Download/Standard/Population/
