In this highly competitive world of work, employers shouldn’t be focusing solely on talent acquisition and recruitment. At least 86% of businesses and organizations will be emphasizing employee engagement as a top priority this year. To achieve this, leaders must invest in their employees to bolster retention rates and combat larger forces like tight job markets and a slowing economy.

While compensation plays an integral role in retaining valuable talent, it is not the be-all and end-all of employee development plans. As this article suggests below, there are other ways to increase engagement levels and allow your staff to grow and succeed together with the organization.

1. Encourage internal mobility

It’s important for employees to feel that their career ambitions are being recognized by their employers. But based on a Deloitte survey on professional opportunities, only 47% of the respondents believed that their organization was making a significant investment in their professional development.

What you must first do to respond to this gap is to have regular career conversations. These are avenues for you to gain insight into your staff’s career goals and identify which organizational opportunities align with said goals.

From there, you can also start drafting a blueprint for career progression within the organization. Some employees may want to move laterally and work in a completely different role; others may desire a higher level of function due to their excellent performance. What matters is that you have a multidimensional strategy to cater to varying employee needs.

2. Offer opportunities to upskill

Upskilling works hand-in-hand with career mobility. Whether they’re transferring roles or moving up the hierarchy, employees must be prepared to update and expand their existing set of skills. This is especially true considering the growing skills gap that affects 58% of the workforce.

The benefits of upskilling apply to both employers and employees. On one hand, employers boost employee retention and save costs on turnovers and hiring new talents. Meanwhile, employees become more confident in their abilities, thereby improving their overall productivity and performance.

Moreover, upskilling enables companies and their staff to stay competitive within industries with an ever-growing need for digital services and skills. The professional development of digital skills shouldn’t stop at higher education but must be fostered even in the workforce through training and certification. High-demand digital skills that employers and employees should focus on include digital marketing and proficiency in emerging technologies like artificial intelligence and machine learning.

3. Implement mentorship programs

With the advent of technology, most companies rely on independent learning initiatives like online courses or learning management systems (LMS). But mentorship programs provide a unique connection and learning experience that no textbook or tutorial can offer.

For one, mentor-mentee relationships benefit both parties. More experienced staff can hone their leadership skills while younger staff can gain the proper guidance to perform better in their roles. From a career development perspective, having a mentor can also provide employees with deeper and more hands-on insight into professional expectations and organizational culture.

Remember that mentorship can take on many forms. You can provide structured knowledge and skill-sharing through shadowing and rotation, while informal mentorships can be facilitated by an open and supportive work culture.

4. Value employees’ mental health

In light of the shift towards remote or hybrid work arrangements, many workers are facing a new set of challenges — from working longer hours to feeling socially isolated. This prompts employers to care and take responsibility for employees’ mental health. In fact, the American Psychological Association’s Work and Wellbeing Survey found that 87% of employees now expect their employers to do so.

Aside from training managers to promote self-care and work-life balance, you can take more concrete actions by reexamining your insurance policies to include mental health services and resources. Consider employee feedback as well, since the most effective and helpful strategies typically come from those who experience the struggles firsthand.

Take note that investing in your employees will take a significant amount of time, money, and resources. Regardless of the size and scale of your organization, Workpay can help you with the financial and management solutions needed for these investments — be it through streamlining workflows, implementing benefits and incentives, or promoting a high-performance culture.