We’re in uncharted territory. With nearly 10 million unfilled jobs in the US, a record number of employers are reporting a talent shortage. Because of the incredible demand for talent and fierce competition, employers are beginning to take different routes to not only attract new candidates, but retain their current talent who are likely being wooed by other companies and recruiters.
Here are a few tactics recruiters have reported their clients are using in this “war for talent”:
Increasing salaries – Many companies are beginning to veer away from sign-on bonuses, which they developed as a short-term fix to the talent shortage, and instead, 62 percent of companies are planning to increase base salaries as a way to retain and make the most of talented employees.
Offer other benefits/perks – If it’s not in the budget to give across-the-board raises, some companies have opted to roll-out programs during the pandemic to offer some sort of relief for workers, whether it is free virtual healthcare, quarantine illness pay, and backup family care benefits.
Utilize internal talent – Normally, companies will conduct an outside search when they have a need. But with so much fierce competition in a tight market, many businesses are now trying to find ways to better leverage internal talent and match them to emerging gaps within a company. By investing in the talent they already have — connecting current employees with internal work and development opportunities, new projects, reskilling and mentoring — companies can reduce turnover and ultimately save money.
Focus on what employees value – Offering similar perks and benefits as your competitors will not sway anyone to choose your company… you have to stand out. A flexible work environment, opportunities for development, a mission/impact that makes a difference, rewards structures… showcase whatever “perk” that puts your company ahead of a competitor’s compensation and benefits. Throwing money at the problem won’t necessarily be the fix… the pandemic has shifted many employees’ thinking to value work/life balance and flexibility above all else.
Retention starts at the beginning – According to this CIO article, “Workers tend to stay longer at organizations where they are aligned with the values, vision, and mission, so identifying them during the recruitment process can pay long-term dividends in terms of retention.” Identify what aspects of your company’s culture and mission you want to emphasize for a company culture that employees are passionate about. Today’s workers want more than just a paycheck, they want to make a difference. In fact, 58 percent of millennials say they would take a lower salary in order to work for a company that has similar values to their own. When you hire people, be sure they are a good cultural fit, which is a key component to employee retention.