2023 Guide to Attracting the Best Talent
It's been two and a half years since the Coronavirus pandemic sent shockwaves through the labor market. As we huddled in our homes, the world's workforce began changing their attitudes about what they expect from their jobs on topics ranging from compensation to workplace flexibility. What ensued was unprecedented. Employees started leaving their jobs en masse. Over 47 million workers decided to call it quits with their current employers in 2021 in a phenomenon known as The Great Resignation. Some left opting for better opportunities at other companies, others to pursue more education, some left to try out an entirely new career, and some decided to hang out their shingles and forge their opportunities away from the traditional labor market.
What happened?
The Great Resignation sent companies reeling. The workforce was stretched thinner than it had been in years. Compounded by the baby boomer generation's retirement, the downturn is expected to continue into the new year. Experts say replenishing the pool will take time, especially if companies still need to understand what drew employees away in the first place. A 2022 McKinsey & Company survey may shed light on the subject. The questionnaire mentioned that among the top twelve reasons employees quit their jobs, 41% of respondents left work, citing a lack of career development and advancement. An additional 36% mentioned inadequate total compensation.
Interestingly, the remaining ten reasons were not related to salary or promotion. Instead, respondents said uncaring and uninspiring leaders, lack of meaningful work, unsustainable work expectations, and lack of workplace flexibility were significant reasons for leaving the workforce. Reports like this may stand as harbingers of change in the structure of the workplace of the future.
Sweeten the pot
As companies seek to attract personnel in a post-quarantine world, finding ways to modify the workplace to be more palatable is high on the priorities lists. Number one on job seekers' Christmas lists is compensation. With inflation rates reaching 9.1% in the U.S. in 2022 and interest rates rising, many are looking for a way to make ends meet. In 2021 the federal government set the minimum wage for all employees at $15. Some private sector employers are also responding to demand, setting higher wages for minimum wage jobs in the mid-teens, triggering some to call for a raise in the compensation rates for all workers. Acquiescing to demand may only be possible for some employers, however. Instead, some businesses have relied on benefits packages with increased PTO days, comprehensive healthcare coverage, and retirement benefits to bridge the financial gap. Some companies have even reported offering free lunches or snacks to employees as a way to lure them back to the office.
Suitjacket and sweatpants
Another point of conversation for workers is the ability to perform their daily duties from home. Though the pandemic may have ended and the critical need for exclusively at-home work has dwindled, job searches for remote work remain high. The utility workers gained with it as an option is a luxury many now see as essential. Workers find value in spending more time with family and avoiding the stress and expense of a daily commute. Some businesses are pushing back on remote work, citing everything from lack of collaboration to loss of utility on pre-paid office space, even going so far as dismissing employees who refuse to come back to the office. However, a recent Indeed study maintains that employers may be advantaged by hiring remote workers because they have access to a larger pool of candidates. Many employers look to the global market for workers despite tax code disadvantages. How the battle will shake out is anyone's guess, but remote work continues to be a significant component of attracting prospective employees.
Where is the love?
An insights report from Indeed showed that 90% of people count how they feel at work as material to their happiness staying with a particular company. It mentioned stress as one of the leading causes of employee turnover, and with the labor gap proving itself slow to rebound after The Great Resignation, the question of long-term employee happiness weighs heavily in workspaces. Measuring and committing to employee well-being will be essential to positively shape your workplace. Establish harmony among all employees, whether on-site or remote. Consider using town-hall-style meetings and anonymous polling to get an accurate picture of employees' minds. Listen with empathy and search for ways to make actionable responses to their concerns whenever possible and show them that their concerns are heard and valued. Happy employees are more likely to refer their colleagues at other companies to join yours. A recent study showed 82% of employers rated employee referrals above all sources for generating the best ROI. Make sure your workplace is a place worth talking about.
Roll with the changes
Change is inevitable. Today, topics of diversity, equality, and inclusion top young workers' concerns, with 72% of employees aged 18-34 saying they would not accept a job offer from a company if they thought their manager did not support DEI initiatives. In addition, Deloitte Research's Global Human Capital Trends report listed a sense of belonging as the top human capital issue faced by organizations today. Companies that can develop a culture that encourages people to feel like they can be themselves, express themselves uniquely, and genuinely share their perspectives regardless of their background help create a work culture that will ultimately cause your company to grow an enthusiastic and energized staff.
In summary
As you look for the perfect candidate to fill your positions in the new year, remember to work on perfecting your office culture. Creating a dynamic and modern workplace revolves around a company's ability to recognize and adapt to change. Job seekers are looking for more out of their workplaces but are also willing to give more to organizations that are empathetic to them.