A shortage of talent means it is more important than ever to make your staff feel valued, writes CATRIONA RAMSAY
It seems that the economic news is going from bad to worse, with energy prices rising and set to rise further, the weekly food shop getting more expensive and inflation increasing rapidly. However, there is one area which appears to be, certainly on the face of it, slightly more encouraging and that is employment – more specifically, job vacancies remain at close to record highs. Some might even go as far to say that we have been and are experiencing an employees’ market.
But even on this subject, all is not what it seems – the most recent figures from the Office for National Statistics (ONS) revealed that the real value of worker’ pay packets dropped by 3% in the three months to June – that fastest rate for 20 years.
That said, it is still the case that there is significant competition for workers, and employers are increasingly having to fight not only to retain staff, but to attract the best talent.
The jobs market is fluid, and this was highlighted in a survey by PWC earlier this year showing that 18% said they were very or extremely likely to switch to a new employer within the next 12 months.
In addition, almost a third said they were moderately or slightly likely to switch.
There are significant skills shortages in the UK and what has been termed the “great resignation” has added further pressure in the labour market.
So what can be done by employers to halt the flow of employees from their organisations?
Well, given the that current environment of rising costs, it’s perhaps unsurprising that, according to the same survey, 72% said an increase in pay was their biggest motivating factor, with 68% indicating that they wanted a more fulfilling job.
Of course, it’s not all about money and one key element of the new model of working emerged during the main period of the pandemic, namely, working from home. The ONS suggests that approximately one in seven working adults said they were now working purely from home with around a quarter saying they had adopted hybrid working.
Furthermore, many younger workers are placing more emphasis on the culture and values of an organisation. Environmental, Social and Governance (ESG) policies are beginning to emerge as important factors for workers and it is important that employers begin to improve these or explore them if they haven’t done so already.
Also, employees who feel listened to and feel valued tend not only to be more productive, but are also likely to be more loyal. Setting up staff committees for example can be an important forum for hearing what your workers think about the organisation, but also for generating new ideas.
Robust and well thought through staff surveys can play a critical role but, of course, any feedback does need to be acted on otherwise they can have a detrimental effect.
A well-defined commitment to Equality, Diversity and Inclusion is another vital element which can empower staff, but will help with attracting the best people, regardless of background, and build the organisation’s wider reputation with all of its stakeholders.
It goes without saying that every employer should have clear routes for progression and should provide support for the ongoing development of their staff – after all why wouldn’t an employer want staff with more skills?
Staff benefits beyond pay are integral to maintaining worker satisfaction, and where finances allow, a range of options can be considered, from introducing a salary sacrifice pension scheme, to flexi time and improved maternity and paternity benefits.
It’s no secret that staff tend to be an organisation’s largest cost but they are also its greatest asset.
Look after them and you’ll be looking after your business.
Catriona Ramsay is a senior associate in employment Law at Aberdein Considine
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