IS INFLATING PAY ENOUGH TO RETAIN TALENT?
There is an increase in a number of organisations inflating pay to retain talent and whilst we do say this does make a difference, it really is not enough to be sustainable in the cost of living crisis.
Private sector organisations are more likely to increase salaries than that of the public sector, and seems to be the most common step to look at the businesses retention. However this highlights a need to offer other components of good working practice when recruiting, with pay and benefits now highly ranked as the most important elements of attracting new talent. New research has shown less than 30% companies are advertising roles as open to flexible working, and this also seems to be the most effective recruitment method for attracting candidates.
With the constant battle for top talent and retention, Shawthorpe feel that there now needs to be a more strategic plan from companies for upskilling, luring and keeping employees, they now want more than just good pay, but more meaningful positions where they feel valued which are culturally and personally rewarding, and each business really does need to assess what they can realistically offer candidates and what they can improve on to retain current employees. An environment and management with your business is crucially important and can really add the value to attracting and retaining.
With the cost of living and possible recession looming, businesses are facing the most challenging times, each business needs workforce planning and to develop a suitable and realistic offerings to attract and retain diverse groups of employees, we understand that businesses cannot keep offering high salary hikes, however there are various alternatives to draw on, we shouldn’t just simply focus on pay, but look at other options such as flexible working, training, culture and other benefits such as health care.
We advise all businesses it is sensible to look at good working practices, it becomes consistent with total reward, whilst money is necessary of course as a justification, it really is not the main reason people are attracted to specific roles or potential employers. Businesses should also take care to fully understand hybrid work and how to implement this, if there is too much focus on hybrid this can have a potential negative cultural effects and if not planned correctly could well harm later talent and attraction or retention aims.
A stronger flexible working option for businesses is usually a great low cost option for employers looking to improve the benefits package, businesses can really reap the rewards of improved job satisfaction, loyalty and flexibility to the business.
If your business is struggling with recruitment, retention why not give us a call where we can place a strategic plan together to assist with your growth? Call us today on 01952 263973.