Brain Drain and Employee Retention

Photo by Pawel Chu on Unsplash

With international borders opening after the pandemic, many individuals are starting to travel, reconnect with family and friends or even make a permanent move overseas for better employment opportunities.

For employers, this can mean losing experienced employees to international companies.

What does brain drain mean?

Brain drain is a term used to explain the challenges of talent migration. It’s when skilled individuals leave one country to work in another because they are offered better remuneration, benefits and working conditions.

What are the causes of brain drain?

  • Better employment opportunities in other countries

  • Better salary

  • Different lifestyle

  • Chance for professional development

Effects of brain drain on the economy

Apart from employers losing skilled employees, brain drain impacts economic growth as loss of individuals to other countries means reduced consumer spending in the country, in turn affecting businesses long-term.

How can companies stop brain drain?

It is important for companies to be proactive rather than reactive. So, to reduce or stop brain drain from occurring, businesses should review their employee value proposition (EVP).

  1. Provide employee benefits

    To secure and retain skilled employees, employers need to ensure that the salary they offer is competitive. However, salary alone these days is not enough, employers also need to consider benefits which employees value including health insurance, gym memberships, etc.

  2. Nurture a positive workplace culture

    Approximately 88% of job seekers consider company culture when looking for a new role. Ensure that you get it right and implement relevant strategies to create an open, supportive, and positive environment.

  3. Adopt remote working policies

    Remote work became popular in recent years due to the pandemic. Now, employees are reluctant to give up the option to work from home. Therefore, employers need to offer remote work options to attract and retain employees.

    With the remote work option in place, employees that choose to move overseas do not have to leave their role.

  4. Consider international hiring

    Brain drain can leave a business short staffed. To avoid this, consider international hiring to bring in valuable skillset into the team.

Need Advice? Contact our team for a discussion at 0400 489 743 or email info@infinityhr.com.au

To find out how else Infinity HR may be able to support your business visit our ‘Services’ page.

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