Coined from a McKinsey report in 1998, the ‘War on Talent’ has not been a new phenomenon. Like many issues that the recruitment industry faces, the demographic and societal forces that kicked off the war on talent have only become more intense due to the Covid 19 pandemic.
In light of the need for more talent, employees now have the upper hand, meaning that employee benefits are becoming increasingly more important in attracting the best candidates, and it is vital that all employers consider their broader offering beyond salary…
The Market
Supply has been moving in the opposite direction to demand for a while in the workforce and it is fair to say there has been a significant reshuffling of working people (See our article on the Great Resignation). The shift to remote working in 2020 and hybrid working in 2021 created new challenges and opportunities for technology leaders and the trend to support more flexible working environments will continue through 2022 and beyond.
An employee will be able to find more job opportunities compared to as recently as six months ago and with 70% of companies reporting talent shortages in the last year – the highest in a decade – it doesn’t appear that this War on Talent is slowing down any time soon.
Over the past few years, mass media glamourise large leading tech companies like Amazon, Google, Microsoft and Facebook who have been building, buying or rehashing office spaces to make them more attractive and appealing to workers. Investment banks offer Peloton Bikes, mental health days off from work, additional vacation days, raises and bonuses to keep their young bankers motivated and happy. However, when you cut through the noise and perception, what really are the benefits that really help entice and retain candidates?
What are the best benefits?
There is clear value in tailoring your benefits to the individual and nature of work. However, statistically there are some of the stand-out most desirable benefits for employees in 2022.
1. Pensions – 50% of respondents to top surveys in the UK want a tax-advantaged retirement saving plan that makes sense. The increase in pension Fintechs have changed consumer views of pensions and has increased its value across the whole workforce.
2. Healthcare – 80% of workers rank health insurance as being the most essential benefit. There are many ways of offering healthcare as a benefit, with some providers focussing on prevention vs others that offer comprehensive care.
3. Company culture – a company with a good culture or reputation would see roughly 90% of people considering changing jobs. Offering mental health days and roles with the opportunity to learn within boost this good reputation. This benefit which also scored joint top in a recent survey conducted by Mackie Myers.A strong culture also attracts and retains better talent as well as adding to the brand identity. It could be considered a ‘free’ benefit for smaller companies to offer and mean employees gain a happy work-life balance from the start, so certainly should be considered one of the best benefits.
4. Hybrid work – A hybrid model is preferred 83% of the time today. However, on a day to day basis, 20% of people cite a lack of interaction as being detrimental to culture. Therefore, a two-way conversation on what hybrid working means both practically and as a benefit is vital.
Summary
In these smaller businesses, the culture contributes greatly to the identity and values of the company. It is a great way to set and maintain the direction of the company and without it, it is hard to keep the company values coherent.
A robust sourcing strategy is crucial- this means being clear about the kinds of people who are good for your organisation and using a range of innovative channels to bring them in. Once that is in place, prioritising a benefits package that will help attract and retain these types of employees will help put you above your competitors for years to come.
