- Only 7% of senior staff think recruitment will be easier
- Uncompetitive pay is amongst some of the biggest retention challenges
- 49% of business leaders are only hiring to fill vacated positions
As we look towards 2023, competition and the demand for talent remains fierce. The barriers and reasons for switching employers have changed significantly.
According to our 2023 salary survey results 54% of business leaders, a challenging hiring landscape is expected next year. Employers that continue to rely on traditional remuneration to attract and retain employees, including pay, titles, and promise of career opportunities will continue to find themselves struggling to attract and retain talent in the modern workforce.
With 49% only hiring to fill vacated positions, around a third are expanding their business and looking for new talent – but how will businesses stand out?
Traditional factors (decent pay, job title, holiday allocation) are still important but are now seen as the bare minimum and with a decreasing trend in pay and market competitiveness, standing out using other benefits has never been more important. Today, even when employers successfully hire workers from peers in the industry, it only creates a reshuffle of talent and contributes to pay competition.
In particular, the modern workforce takes climate action and responsibility seriously, and often is one of the main factors considered when looking at potential employment opportunities. Traditionally, ESG standards were something considered by investors when deciding in which companies to invest. Now, a company’s approach to ESG often forms a central part of its strategy and values. Demonstrating sustainability along with inclusive and diverse working environment is key to making both employees and potential candidates feel valued.
Providing additional benefits such as a performance related bonus, health insurance or a matched pension scheme will also prove beneficial in terms of attracting and retaining quality candidates as it demonstrates your commitment to support your employees through such times as a cost-of-living crises, or inflationary period.
Flexible working arrangements continue to be a pull for candidates looking to secure their dream role. Demonstrating trust in relation to start times, part time work arrangements and working from home can ease pressure on families and people who may have care responsibilities – it can be a big incentive for employees to remain with the organisation too as they feel valued and trusted to do their job regardless of time spent on the clock or where they work from.
If you have any questions, or need support with your acquisition and retention strategies, contact us and one of our experts will be happy to share their knowledge and experience of the employment market and make sure you have the talent you need to succeed.