4 Ways to Retain Your Best Talent During the Cost-of-living Crisis
We are well into January 2023, with the current post-pandemic worker shortage lingering! In November 2022, 13.3% of businesses surveyed by the Office for National Statistics reported experiencing a shortage of workers. Trustworthy, experienced employees are more valuable than ever when many decide to change careers or exit the workforce. Unfortunately, those same employees can find it very tough due to rising costs. Given the pressure, it may be much easier for a rival company to “poach” your finest workers. Loyalty can only go so far when you’re fighting to make ends meet. But fear not! As an employer, you can undoubtedly change your strategy and ensure you retain your best talent during difficult times, so your business continues to thrive. Here are three ways to be successful:
- If you can, pay more
It should go without saying that matching a higher offer—possibly even before another company makes the new offer—is the best approach to keeping a potential employee. Although most businesses won’t be able to match the very high inflation levels during the past year in employee pay, some degree of rise will benefit. However, other options are available if you want to boost compensation for an employee you believe deserves it. A one-time cost of living payment or incentive won’t have the same impact on your ongoing expenses, but it will show your employee that you appreciate them and want to support them during this challenging time.
- 5 million UK employees planned to leave their jobs next year, with better pay and benefits being the primary motivator to go (CIPD, 2022)
- 35% of those looking to quit their job are moving for better pay and benefits (CIPD, 2022)
- Be flexible!
Adopting flexibility in workplace operations is a crucial retention technique. British employees appreciate working remotely from other locations. According to a report by Employer News, 88% of office workers want to work from home at least one day each week, and many are willing to quit their positions if necessary. Among 25 to 34-year-olds, 33% indicated they would likely leave their jobs if required to work in an office full-time. Accepting flexibility encompasses more than just permitting remote work. It also entails paying for equipment to make working from home more convenient and effective or subsidising the cost of using public transportation to get to the workplace.
- 58% of hybrid workers said flexible working helps them to manage the increased cost of living (Glassdoor, 2022)
- Half of UK hybrid workers were less likely to look for a different job (Employee Benefits, 2022)
- Roll out benefits
There are many extras you can provide an employee alongside their salary – and some of it doesn’t have to cost you anything. Our lifestyle benefits are just that. At LWM, we add value to employees’ lives through market-leading lifestyle benefits that improve morale and increase productivity. Your employees can save thousands on their daily expenses when shopping online. Our offers extend to popular shopping brands, gym memberships, and leisure activities and outings. Employee retention is critical to business growth. LWM’s benefits and discounts will increase employee engagement and help you attract and retain talented employees. Providing them with a mobile contract or more annual leave are other benefits. Since research indicates that employees who take a sufficient amount of time off are very productive, you could be helping them while also helping yourself!
- Invest in L&D
Moreover, the provision of Learning & Development is fundamental in instilling a sense of belonging and prospect in your workforce. Research shows a rise in retention rates by 30-50% for companies with strong learning cultures. When employees know they can expand in their day-to-day roles, this gives impetus and momentum for ongoing engagement. The more they develop, the more they will want to use their newly acquired skills. LWM’s online training platform aims to equip you with the tools to provide your employees with advanced L&D – on-demand and affordable. These approaches vary slightly, but they all focus on the same idea: letting your top employees know how much you value them and paying close attention to them during a difficult period. If you nail it, they should stay! At times of cost-of-living hikes, retaining your employees is more essential than ever. With LWM Solutions, achieving higher retention rates is easier and more affordable than ever.