Recruitment and retention is about more than just pay
With the cost-of-living crisis and rising inflation still having an impact on the UK population, specialist recruitment firm Robert Half has warned business leaders that staff are commanding better pay – and that their sense of job security and search confidence is making attraction and retention increasingly challenging.
Employers need to strike the right balance between offering competitive remuneration, progression plans and providing other benefits such as learning and development opportunities if a sustainable talent attraction solution is to be developed.
Matt Weston, Senior Managing Director UK & Ireland at Robert Half, commented:
“The high jobs confidence we’re seeing in the employment market at a time when the economy is sluggish is understandably putting pressure on corporate budgets as higher salaries are increasingly sought. The challenge for employers will be finding the right balance of financial and non-financial incentives to ensure unrealistic pay rises don’t have a detrimental impact on the bottom line. However, leaders need to be mindful of the fact that, while they can appease staff and new recruits with modest pay rises, with skills in short supply, competitors could easily poach their most valuable resource.
“While above-inflation pay rises aren’t sustainable for many firms, another talent exodus could soon be on the cards if retention plans aren’t implemented. Those leaders that find the balance between appropriate financial incentives and other attraction benefits such as training and progression opportunities, will be the ones to beat the competition on a longer-term basis.
“With the right strategy and a clear roadmap, business leaders can emerge from the current macroeconomic uncertainty stronger and ahead of the competition. As a leader, make sure you are looking at all the levers at your disposal. Employers should be thinking about how to attract and retain the best talent, how to appeal to more candidates with a diversity mindset, take on more apprentices across a range of age groups, and invest in upskilling and reskilling their valuable workforce resource.”
There are several ways in which a manager can create a work environment that will increase employee motivation, including skill development and recognition. If there is the opportunity to do so, allow employees to develop their skills and abilities, and take on more responsibility if they want it. This could take the form of structured training or mentoring, or could be as simple and cost-effective as bringing staff members to cross-department meetings, or work events they wouldn’t normally attend. Employees often crave autonomy and independence in decision-making, so provide more authority for the employee to self-manage and make decisions.
Likewise, whether it’s an informal thanks whilst passing in the corridor, or an annual awards ceremony, the value of employee recognition cannot be overemphasised. Thanking an employee or team for a job well done provides motivation and encouragement for them to continue to do a great job, particularly if there is some sort of tangible value attached to it – which can be as small as a mention in a newsletter that goes out to all staff, or a monetary bonus.
Writing for International Workplace on the use of learning and development as a retention strategy, Amy White, Head of Loch Training and Wellbeing said:
“We know it’s not all about the ‘money, money, money’. Yes, a healthy salary is important, practically and from a wellbeing perspective, but it doesn’t go to the heart of employee satisfaction. Instead, employees want to see clear growth opportunities and to know their organisation provides options for upskilling, which will help them grow over the long-term. According to The Work Institute’s Annual Retention Report 2022, ‘career issues’ are the most cited reason for employees leaving a job, while employees who feel they have access to the L&D they need are 21% more engaged than those who don’t (Culture Amp).
“Investing in employee L&D is a great way for an employer to demonstrate how highly it values its staff. Employees who feel they’re learning and developing and that their employer is giving them the tools and resources they need to do so will feel supported from a human perspective, rather than simply being treated as a cog in a wider machine. And in practice, providing development support requires an employer to genuinely know their staff as individuals, which, in turn, assists with building stronger relationships, engendering greater employee loyalty and even identifying future leaders as part of wider succession planning.”
Read Amy's full article here.
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