The Great Resignation has created a labor market where employers need to compete for the best talent. The increase in competition means companies need to pay attention to recruitment and retention efforts when conducting strategic planning.
The Willis Towers Watson’s 2022 Global Benefits Attitudes Survey found that employees today are more open to leaving their job than ever before. The top reasons employees leave a job are increased pay and better benefits.
A staggering 56 percent of workers said pay is the number one reason they would search for a new job. The search for better pay is fueled by inflation and a highly competitive job market. However, nearly 20 percent of survey respondents reported they would take a new job without a pay increase. The top five reasons for employees leaving a job turns out to be pay, health benefits, job security, flexible work arrangements, and retirement benefits.
So how can companies fight the job market trends? One of the best times to address these critical issues is during your company’s strategic planning process. You want your company to accomplish your goals and objectives and finding the right formula to attract and retain employees is one of the most important things you can do.
Here are five objectives companies should work toward to attract and retain top talent.
1 – Have innovative employee compensation programs
Pay is one of the most critical factors employees use to choose between jobs. Forty-one percent of workers said they would leave for as little as a 5 percent increase in pay. Since pay is so important, it needs to be addressed. But not all companies have the financial capacity to increase pay rates. This is where offering innovative employee compensation programs, like on-demand pay, can give you a competitive hiring edge.
Research shows that 79 percent of workers will consider working for another company if they offer on-demand pay. Giving employees immediate access to their earned wages versus the traditional bi-weekly paycheck is a trend expected to continue in the future.
2 – Offer modern employee health benefits
Health insurance and a retirement package are still the top benefits. However, workers today enjoy wellness benefits too. Offering something like Lifestyle Spending Accounts is a great way to show your employees you care about their health and wellness. Healthier employees are also happier employees. Companies that implement Lifestyle Spending Accounts have employees who are less stressed, more satisfied with their employer, and more productive in their work.
3 – Create a retention strategy
Every employer wants their best employees to stay. But many companies fail to create a viable strategy that creates engagement with employees and makes them want to stay for years and years.
Retention truly starts with recruitment. Be realistic with job requirements and duties. Then move on to putting a lot of time into creating a seamless onboarding and orientation process. Ensure they have access to training and job development once they are on the job. Employees increasingly are leaving if they do not get along with supervisors, so it’s good to know what teams are happy and what groups are not. Of course, employees also want an excellent work-life balance to enjoy their time when they are not on the clock.
4 – Provide flexible work arrangements
The rigid confines of the office no longer define when and where work needs to be completed. If you want to compete in today’s talent pool and still attract top talent, you need to offer flexibility to your employees. Luckily, there are many options for employers to choose from to make their company work environment more flexible.
Remote working is becoming increasingly more popular, and many workers are demanding it. Even partial work-from-home options can help retain employees, but you don’t have to have an entirely remote workforce. Other employee programs like commuter benefits, micromobility commuting options, and employee meal cards are excellent ways to give your employees more flexible work arrangements.
5 – Expand retirement benefit options
Successfully attracting and retaining employees starts with recruiting and hiring. Although, once an employee is hired, retirement benefits can influence their decision to stay. Having a robust retirement package with many different investment options, employer investment matches, and potential pensions can give your company the edge it needs to keep your best employees.
By focusing on these five strategies during your next strategic planning session, you can attract new talent to your company while retaining your best employees. Don’t let a lack of modern employee pay and benefits programs encourage your prospective and current employees to choose to work for your competitor.
Do you want to know how your business can benefit from commuter benefits, wellness programs, employee meal benefits, micromobility commuting, or on-demand pay? Schedule a call today so we can discuss what we can do for you and your employees.