How to attract and retain top talent in a candidate’s market

COVID-19 brought unprecedented global changes the last two years and with it the most glaring question: Where did all the workers go? COVID disruptions closed many businesses while fueling others, challenging our view of supply and demand. A new surge of candidate availability has been injected into a previously in-office world. Now, employees can choose to work for companies from the comfort of their own homes. As a result of these booming job opportunities, labour market tightness has only increased. It’s a candidate’s market; attracting and keeping top talent is now more difficult than ever. How can employers keep up with competitors in the war for talent?

With more companies adopting a remote or hybrid workforce, we are seeing dropping unemployment rates across the US, Europe, and the UK. J.P. Morgan chief U.S. economist Michael Feroli predicts that in 2022 rates will continue to fall. According to World Finance, “The pandemic has prompted a global pivot to digital at a scale that has simply never been seen before. Almost overnight, companies successfully adopted remote work as government-mandated lockdowns came into effect in the spring of 2020. This not only enabled employees to continue to work from the safety of their own homes, but it also had the added benefit of breaking down many geographic barriers for businesses.” Employees now have access to opportunities that were previously out of reach due to the inability to relocate, family obligations, restricting office hours, or difficult and long commute times.

Employees have more of a choice than ever to leave a company or the industry entirely. With access to online schooling, certifications, and side-hustle jobs, they have gained the possibility to leave their employer and rebrand themselves while stepping into a new industry. No longer are employees bound to an outdated ‘career path’.

More employment options means less reliance on the current position—therefore, employees are more likely to leave their current employer if they are not satisfied with their position, company, or growth potential. Worse yet, competition is fierce: employers are preparing for big pay raises in 2022 in a desperate bid to attract talent in a tight labour market.

Changing the perspective
It is imperative that employers re-evaluate their hiring strategies and retain the talent they have worked so hard to attract. This requires employers to change their perspective: instead of focusing on what an employee can do for the company, what can you as an employer do for your employees?

Many employees are no longer interested in longevity at a company for longevity’s sake. Gone are the days where employees could be satisfied with gold watches, stock, and a retirement party. Today’s workforce values personal growth and a good work-life balance over purely materialistic rewards.

Paid Time Off (PTO), education and or certification reimbursements, pet insurance, childcare, dry cleaning, cultural or travel opportunities—it’s all fair game in the “What’s in it for me?” employment world. So how can employers invest in their workforce and keep up with changing demands?

How to treat new hires
As the saying goes, you only get one chance to make a first impression. Pay attention to what impression you leave on your new hires during the interview process, onboarding, and ramp period associated with starting at your company. Make sure to show your company values—young talent in particular wants to work for organisations they can identify with and whose core values align with their own. Respect candidates’ time by communicating clearly and proactively throughout the interview process.

Once a candidate accepts your offer and becomes an employee, make sure they know what is expected of them while they await their first day. Make sure to address questions that are usually stressors for new employees, such as office locations, start times, dress code, and who they should report to when they get to the office.

Communication from hiring managers and HR is important to set the tone for their first day. The first day should be a great experience. Take time to truly welcome your new employee and arrange introductions. Don’t immediately jump into assigning work; instead, give employees time to acclimate to their new work environment, meet their team and become familiar with internal work systems.

If your organisation has branded swag (promotional products with the company logo on them), make sure to have some ready for your new hire. Not only is it marketing material, but it will make them feel included in the organisation quickly.

The better the first day, the more likely you are to have a loyal and satisfied employee from the start. Not sure about the impact a moment can have? Check out The Power of Moments: Why Certain Experiences Have Extraordinary Impact by Chip and Dan Heath.

What to do for current staff
Besides paying attention to new hires, investing in your current workforce is paramount in keeping a healthy company. Make sure your top performers are staying at the front of the pack by offering continuous trainings or opportunities for them to learn new areas of the business. Promote from within and allow employees the chance to try a new field or focus.

In addition to growth opportunities, embrace policies that ensure good work-life balance. Reward your employees with PTO/vacation and encourage them to use it. If possible, let your employees choose their working hours; allowing them to be present for important parts of their lives outside of work (e.g. taking their child to school, having family dinner, making lunch for their elderly parents, or even just because they aren’t a morning person).

Another key aspect in retaining talent is creating a fun and comfortable work environment where your employees can be their genuine selves. Invest in diversity and inclusion and offer training on why a diverse company makeup is important. A diverse workforce can enhance your company’s ability to respond to issues by bringing different viewpoints, perspectives, and ideas to the table.

Retain, don’t replace
In today’s economy, no company can afford to lose. Losing people now directly relates to losing the game. In fact, The Society for Human Resource Management (SHRM) reported that on average it costs a company 6 to 9 months of an employee’s salary to replace one employee. For an employee making US$60,000 per year, that comes out to US$30,000 – US$45,000 in recruiting and training costs.

High employee turnover is one of the easiest things for companies to control. Review your workplace policies and think about implementing new processes and procedures that make working at your business better:

  • Do you offer the right mix of affordable benefits?
  • Do you have the supplies and tools needed for people to get the job done?
  • Is your team engaged and committed to growth and company success?
  • Is your team recognised and rewarded for a job well done?
  • Are there incentives and goals driving employees to succeed, both individually and as a company?
  • Do your employees feel included, valued, and appreciated?

Today, the candidates hold the cards and employers need to play the game in an entirely new way. Whether you are hiring manual labor workers or executive level management, the principles remain the same. Retain, don’t replace! Employees are worth more than you think. Keeping them makes good business sense—especially in the light of The Great Resignation that is affecting the workforce in the United States and around the world. Stay tuned for when we will be revisiting this topic in early 2022–until then, check out these ideas on how to keep your employees happy.

This article was brought to you by our partner in the USA. USA-based Small World Recruiting has recruited exclusively in the logistics supply chain industry since they opened in 2014. Global logistics and supply chain is a vast system encompassing everything from raw material to the end consumer.  Small World Recruiting have proudly been part of Experts for Experts since 2018.