Attracting and retaining top talent is proving problematic for employers in the current economic climate. According to the Integrated Benefits Institute, 61% of employers struggle to hire employees in the first place and 73% struggle to keep them, showing that the job market is competitive not just for job seekers but for employers too.
When searching for a new position, people look at a range of jobs and opportunities, comparing companies’ salaries and benefits to make their decision. Employers are always competing to attract sought-after top talent, finding a balance between offering competitive remuneration packages and benefits whilst remaining realistic.
Understand legislative changes
The job market is very driven by the state of the economy and, with the recent changes brought about by the Employment Rights Bill, there is certainly a turbulent feeling. There is general concern around the effect of the Bill on employers, especially in recruitment. The rises in Employer’s National Insurance contributions have increased the cost of employing people, and those costs are likely to increase further with other changes being proposed by the government.
This all means that companies need to be even more selective when hiring to ensure they recruit top talent. The proposed changes to sick pay, unfair dismissal rights and flexi working requests may also destabilise the working landscape. As a result, many companies are facing high staff turnover rates, which is problematic. Training new staff when someone leaves costs money, takes up time and requires lots of resources.
Adapt to shifting employee expectations
A major challenge facing employers is adapting to employees’ evolving expectations and requirements.
With each generation, views on work ethic, company culture, workplace environment and management style change. As a result, employers need to adapt their culture to fit. This is critical to get right yet can still remain a point of tension between employers and candidates of different generations. Employers should aim to strike a balance between offering the stability and hierarchy typically valued by older generations, whilst demonstrating flexibility and work-life balance that often appeals to younger people entering the workforce for the first time.
Take DEI seriously
Diversity is also a challenge for employers who must actively strive towards a diverse workforce whilst also ensuring they employ the best person for the job. As diversity, equality and inclusion (DEI) become increasing focuses in modern work culture, employers must demonstrate they’re taking them seriously. Jobseekers can be put off by factors such as a company not being a ‘disability confident’ employer, or not adequately supporting employees returning from maternity leave who need to balance childcare and their careers.
If organisations aren’t meticulous about having the right policies and certifications in place, they can miss out on attracting and hiring the best people.
Consider alternative career paths to development
Companies should also be flexible in their approach to career development. Recent changes to adult apprenticeships in the UK signal the beginnings of greater acceptance of older apprentices, enabling people to learn new skills and change career path more easily. By offering alternative routes to qualification, employers will have a greater pool of candidates from which to source their talent. Embracing apprenticeships could prove to be highly beneficial for companies looking not only to attract but develop their own top talent.
Consider remote vs office-based working
Navigating work from home and the return to office is a universal issue affecting all businesses. An increasing number of organisations are making office attendance mandatory, despite it being off-putting for applicants, especially when working in-person is required five days a week.
However, it’s not just employers’ ability to attract talent that’s affected. When reinstating mandatory office attendance, employers run the risk of losing high performing employees to companies that do offer remote or hybrid positions.
Given the risks, employers should seriously consider this policy and whether there’s a genuine business need before its implementation.
Acknowledge the importance of culture and brand
The answer lies in finding a balance between a competitive pay structure and appealing company benefits. Whilst increasing numbers of reports are suggesting that the new generation of workers value work-life balance more than previous generations, attractive remuneration remains an important factor as living costs soar.
Culture and employer brand are not just instrumental in attracting top talent but retaining it too. Often, people move jobs in pursuit of the right work culture, not just in pursuit of better pay. By investing in a good culture, such as through professional development or CSR initiatives, people will not only want to work for a company, but they will also be more likely to stay.
Growth, loyalty and long-term thinking
Whilst establishing an employer brand and desirable work culture is essential, companies must also remain adaptable and open-minded when it comes to change. As demands and expectations shift with each generation, companies must be prepared to adapt, or their employees will move on to a company that has managed to keep up. By facilitating regular dialogue between the business and employees, such as through one-to-one meetings or online surveys, staff will feel heard and cared about, fostering loyalty.
A cornerstone of a positive work environment is offering opportunities for career growth and professional development. It’s not just about progression; people want to know if and how their employer is going to help them to grow. Providing additional opportunities to develop and learn new technical and soft skills is a sign of an employer that’s invested in its staff.
Ensuring that every role has a clear pathway to the next stage of their career, with line managers frequently reviewing progress, will not only help employees thrive, but employers will benefit from a workforce consistently upskilling itself.
Set people up to succeed from the start
Part of facilitating healthy professional growth and progression begins with having the right onboarding and transition processes in place.
Training people up and helping them transition into a new team, becoming an embedded and valued member, will not only help them to feel supported throughout the onboarding process, but it will also boost their performance in the long run, setting them up with a secure foundation from which to move forward in their career.
To maximise the impact of professional development opportunities, employers should ensure training is dynamic, offering a mix of interactive sessions such as 121s and mentorship programmes, rather than just attending a one-off presentation.
Create a workspace people want to be in
The physical workspace is also evolving, with companies recognising the impact of a physical environment on productivity and team morale. Google has embraced change brilliantly over the years, making their offices less formal and more spacious, with breakout rooms and meeting spaces designed to foster creativity. Businesses should invest in their physical workspace to create an inspiring office environment that people want to work in, which will contribute to a thriving office culture and help to retain talent.
Go beyond job boards
Looking to the future of recruitment, companies should think outside the box. Many companies are using career fairs or events such as summer barbecues to showcase their organisation.
These are important ways for a business to convey its values, how it treats its employees and sets them up for the future. Such events also enable people to get to know the organisation better so that when a vacancy comes up, they have lots of interest already.
Don’t get left behind
Employers are struggling when it comes to talent attraction and retention. A combination of factors is contributing to high staff turnover rates, resulting in financial and reputational repercussions for employers. To break this cycle, employers must build a solid brand and culture and be
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