Could higher paying jobs tackle recruitment & retention issues?
Another year, another set of challenges in the workplace. Talent shortages, the cost of living crisis and increased demands from staff have given way to a highly volatile job market, which is now run by employees. This is being felt by HR professionals up and down the country as they try to recruit and retain talent as best they can in the current economic climate.
But with more jobs than candidates and inflation running riot, the question is, is cash still king? Our HR in 2023 and beyond report revealed that whilst some industries have gifted employees with blanket pay rises in line with rising costs, money is simply not enough to keep employees happy.
Money used to talk
Although 38% of respondents said that they have given their staff a blanket pay rise in reaction to the cost of living crisis, staff turnover is still the biggest problem facing HR teams this year.
In the traditional 9-5 era, there weren’t many negotiable factors in the way people worked. They came to the office within the standard hours and were compensated appropriately, depending on role, seniority and responsibilities. Therefore, “money talked” and the salary was key to recruiting and retaining employees.
Now, there are different variables and flexibility, meaning money isn’t everything – especially not for modern-day workers who experienced the pandemic-induced shift in the workplace.
Is monetary employee compensation/higher paying jobs still the top factor in recruitment?
Of course, salary is still a significant consideration for many looking for new opportunities, but it’s clear there have been big changes in employee expectations and needs when it comes to work.
The pandemic was a landmark turning point where a healthier work/life balance and better job satisfaction were held as high as monthly income. PwC’s workforce survey evidenced this, with over two-thirds of people now looking for more fulfilling roles, over those offering higher salaries.
Our report shows that HR professionals are importantly aware of this and therefore consider salary, flexible hours and hybrid working as the top factors for attracting talent going forward.
What else can organisations do to attract and retain talent?
Although there has recently been some pushback on flexible working arrangements from larger businesses publicised in the media who want employees back in the office, it’s clear that this isn’t going anywhere. In fact, 75% of HR professionals said they will adopt a hybrid approach.
And rightly so, as Gartner found that over half (52%) of employees said that flexible working policies would affect their decision to stay at their organisation.
At the same time, an increased focus on mental health and employee wellbeing at work also means that it’s time to get creative with benefit offerings, and internal initiatives that boost engagement and overall job satisfaction.
Ultimately, people want to enjoy their work. Gone are the days of turning up with tunnel vision on the pay packet at the end of the month. They want more, and those who don’t get it will happily find it elsewhere.
Discover more in HR in 2023 and beyond
Our latest annual report features key data on people challenges, priorities and initiatives that HR professionals from across the UK are focusing on this year. As the candidate-driven market continues to grow, it’s time to let your company’s culture shine with a people-first approach.
Current and future employees know exactly what they want from work, so it’s important to have a finger on the pulse of your workforce and make positive changes to improve employee engagement and satisfaction before it’s too late.