The attraction and retention of employees have become major challenges for today’s organizations. A combination of a thin supply of skilled workers and high numbers of employees voluntarily quitting their jobs has made recruiting and retention more challenging than at any time in recent memory.
The shortage of skilled workers has now put job seekers in the proverbial driver’s seat. Regardless of whether they’re looking for jobs in finance, insurance, manufacturing, or any of a variety of industries, workers need more money, better perks, and better hours. And the forecasts that I’ve seen predict that things will stay this way for the foreseeable future.
Job seekers’ specific demands range from sign-on bonuses to generous paid time off, to flexible working arrangements, to upskilling opportunities — to all of the above. Hiring managers will need to weigh the qualifications of an applicant and the field of available candidates to fill the particular position against the potential return on investment of granting an applicant’s requests.
Below are many of the table stakes that employers must expect to offer if they hope to land the skilled workers they need:
1. Generous Amount Of Paid Time Off (PTO)
The standard starting employee’s two weeks off a year will no longer be satisfied. A more attractive PTO offering is an effective bargaining chip for employers looking to bring on talented workers. In many instances, PTO programs are switching to an accrual system, in which all time off — sick pay included — is banked and compounded. Some companies have even begun offering unlimited PTO as a way to signal to prospective employees that they trust their workers to know their own ebb and flow of projects and productivity.
2. Flexible Working Arrangements
Remote work situations brought on by the pandemic have led most workers and their employers to realize that working away from the office doesn’t negatively affect productivity. Rather, in the past year, worker productivity actually increased. As a result, in many organizations, the expectation that employees must be on-site has relaxed.
Today most job applicants can make flexible work options — both in hours and location — a condition of their employment. This includes everything from working off-site (including way off-site geographically, such as in another state or country), to work hours that revolve around school drop-off and pick-up times, to hybrid models that allow any number of work flexibility options. Many offices offer a hybrid, two-or-three-day a week in the office/two-or-three-day a week remote option. To stay competitive, your office may want to do the same.
3. Increased Salaries
With workers’ aspirations on the ascent, those seeking employment no longer have to grovel for meager wages. Reports show wage growth is the fastest it has been in 20 years. Applicants have learned to parlay job offers as a tactic for receiving a higher counteroffer. Another recent trend is to offer company stock to employees as have PayPal and Overstock, for example. For hourly wage workers, many large corporations are upping their pay from the country’s insubstantial $7.25/hour minimum wage to attract workers. Also, as inflation hits a 40-year high, workers are requesting salary adjustments to make ends meet.
4. Offer Upskilling And Development Opportunities
Because of severe labor shortages, some employers have been compelled to lower their job requirements to attract candidates. They must then provide on-the-job training to raise the skill levels of their new recruits. This boon for job seekers means that they are able to learn while on the job and drawing a salary. An added bonus is the increased opportunity for career growth as their employer will try to keep them around, considering the investment already made.
5. Boost Retention Strategies
More than ever before, companies need to focus their efforts on keeping the talent they have. From ensuring effective and engaging onboarding and orientation to soliciting and acting on employee feedback to acknowledging and celebrating work well done at every level, employers must continually keep their workers’ welfare top of mind. Organizations are awakening to the important culture shifts that help everyone to feel welcome and appreciated through a commitment to diversity, equity and inclusivity efforts.
With employees demanding better compensation, flexible work conditions, and an inclusive and appreciative work culture, employers may also benefit from a more engaged and satisfied workforce.
I am the author of five books, including 301 Smart Answers to Tough Business Etiquette Questions (Skyhorse, 2010), 301 Smart Answers to Tough Interview Questions (Sourcebooks 2005), named in the top 10 list of “Best Books for HR Interview Prep,” and Bad Bosses, Crazy Coworkers & Other Office Idiots (Sourcebooks, 2008). For more information, visit my site at vickyoliver.com.
