The world has become a very different place. As we drift away from the pandemic, our concerns are focused on how we can recruit and retain employees whilst being rightfully worried about how such a long-term financial commitment might impact upon future cashflow given heightened economic uncertainty.
During the pandemic, employees reassessed their priorities and decided to work for ”better” employers. Employers who offered more money, better career prospects, better working environments. Consequently, demand for skilled candidates has never been greater. Here’s what I’m advising my clients to help them to address this crisis:
Pay whatever you can afford to secure employees who will help you achieve your business goals. Employees drive your business, without them, your business will fail. This may mean cutting costs elsewhere, but a worthwhile investment. Undertake a salary benchmarking exercise to assess what the ”going rate” is, whilst being mindful of internal pay parity.
Temporary supplements. If there is a particular skill set you need to pay more for to meet ”the going rate”, you can pay a temporary market supplement rather than commit to a permanent uplifted salary. You can also reward your existing employees with a one-off bonus to recognise their commitment and effort.
Offer flexibility over working hours and home working dependent on the employee. Recognise and address individual circumstances. For some, home working will represent an important cost saving due to no travel costs, for others, they may be more concerned about rising energy prices, or simply, prefer to be in the office. Some employers have introduced the four-day working week, or encourage employees to work at times that suit them, for example around childcare. One size doesn’t fit all. Get to know your employees and personalise the solution.
Review your employee benefits package. There are a number of excellent employee benefits and rewards platforms out there that offer a range of employee perks and discounts which can be used to offset monthly costs such as supermarket shopping or discounted days out, at little or no cost to the employer. The benefits that you offer can also incorporate information and support for employees on things like debt management and mental wellbeing via an employee assistance programme (EAP).
Career development. Re-assess who you need to recruit. Rather than hire a skilled IT specialist with years of experience, can you offer training and experience to a graduate? You can teach a skill and give experience, but it’s difficult to change core behaviours. I’m always a fan of recruiting the right character and cultural fit. Your local university may be able to help you to recruit one of their graduates, some also offer grant funding.
