Tag: Talent Retention

81% of employers have implemented sign-on bonuses

According to the WTW 2022 Mid-year Compensation Survey, employers are using a number of strategies to attract and retain employees. From increasing flexibility to sign-on bonuses, employers are having to think out of the box as the hiring market remains tight.

The survey found that 71% of employers have difficulty attracting and retaining employees with digital skills while 66% said the same for professional employees. For hourly roles, 61% of respondents said they are having difficulty hiring and keeping workers.

To help attract and retain workers, WTW found that employers are:

  • Hiring employees at the higher end of salary ranges, 86%.
  • Increasing flexibility in where employees work (for example, home versus office) and how they work, 84%.
  • Offering sign-on bonuses to attract talent, 81%.
  • Using retention bonuses to keep employees, 65%. Organizations that are enhancing the use of retention bonuses are most likely to target such bonuses to managers (82%) and professionals (80%).
  • Increasing training opportunities, 55%.

Lesli Jennings, North America Leader, Work, Rewards and Careers at WTW commented: “Employers are leaving no stones unturned in their battle to find and keep talent.”

The WTW survey also found employers are revising their salary budgets to hire and keep workers. Respondents said they are planning or considering:

  • Boosting their current salary budgets, 44%; 23% already have done so.
  • Adjusting salary budgets throughout the year on an as-needed basis, 46%; 22% already have.
  • Making more frequent salary adjustments throughout the year; 7% already have.
  • Adjusting salary ranges (i.e., minimums, midpoints and maximums) more aggressively, 46%; 18% already have.

The survey took place between May 23 and June 16. It involved 884 organizations in North America that employ more than 15 million people.

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94% of those who quit their jobs have no regrets about leaving

A report from The Conference Board has revealed that as the Great Resignation’s momentum continues, one-third of workers are actively looking for a new job.

According to the report, 94% of those who left their company in 2021 do not regret their decision with respondents stating that if given a choice to return to their previous organization, a quarter said they likely would.

Rebecca Ray, executive VP of Human Capital at The Conference Board commented: “Despite worries of a recession — and the hiring slowdown and layoffs that often result from a downturn — the labor market remains strong. And the robust jobs market is continuing to empower workers. Our survey results reveal [workers] continue to want more flexibility and higher pay, and they’ll go elsewhere to attain these benefits. But slowing economic growth makes the decision to jump ship riskier. To retain talent, companies should work with their employees to determine to what extent they can accommodate their needs.”

Insights from the report include:

Job seeking: The Great Resignation isn’t over. Thirty-one percent of respondents are actively looking for a new job, while 28% are unsure if they will quit in the next six months. Only 38% indicated they would like to stay with their current company.

Flexibility a driver: Seventeen percent of workers stated that they voluntarily left their company within the last year for a flexible work location, flexible work schedule or the ability to work from home/anywhere with other top reasons for quitting were higher pay and career advancement, cited by 22% and 14%, respectively. Thirty-seven percent of individual contributors quit for more flexibility, compared to 18% of CEOs. Additionally, more flexibility, higher pay and career advancement were the top factors that would influence workers’ decision to stay at their company.

Fatigue: Job fatigue is driving workers to quit, especially women and millennials. Eleven percent quit their jobs over the last year because of workload. A quarter of millennials quit because of job fatigue, while 25% of women left because of job fatigue, compared to 13% of men.

Pay expectations: Fifty-two percent of Gen X and 47% of Baby Boomers said higher pay would influence their decision to stay with their organization. Seventy-four percent of millennials said the same. Meanwhile, 61% of individual contributors would likely stay at their organization for higher pay, compared to 22% of CEOs.

CEO turnover: Forty-five percent of CEOs said they left their organization for a stronger connection to mission and purpose, while 36% left because they had greater faith in the positive trajectory of their new company. The survey included more than 1,100 individual professional workers. It was conducted from June 21 to June 28.

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A recession should not have any impact on staff turnover or retention

Predictions of a spiralling economic crisis will be another blow to businesses’ hiring headway but according to Steven Jagger, founder of tech recruitment firm Maxwell Bond business leaders should “revamp” their culture in order to weather the looming recession and avoid a Great Resignation 2.0.

The arrival of the so-called Great Resignation this year hit the headlines and saw UK businesses’ staff turnover and attrition rates hitting record levels. But experts are forecasting another blow once the impacts of inflation, the cost-of-living crisis, and the recession come into full force.

Steven Jagger, Founder, Maxwell Bond commented: “An economic crisis shouldn’t leave you clutching at straws and panicking. Staff will always be loyal – if you give them reason to be. Employees don’t leave workplaces and colleagues – they leave bad leadership, toxic culture, or a lack of vision for your team and business. Ask yourself, when was the last time you looked at these and revamped your vision?”

Jagger was quoted saying that while a recession would be another blow to businesses when they’re already down, it shouldn’t have any impact on staff turnover or retention if your business’s culture is right.

The founder of the award-winning tech and digital recruiter whose clients include the BBC, Reckitt Benckiser, Barclays, TalkTalk, and Mastercard, believes talent retention “is a skill in itself” and that many leaders “fail to see the importance of it in times of adversity”.

Jagger continued: “By industry standards, we should have experienced higher attrition rates than we have to get to these numbers, but we founded the company on the values of prioritising people, especially our staff, above anything else.

“A recent Deloitte report shows only 56 per cent of employees think their company’s leadership cares about their wellbeing – contrasted to 91 per cent of leadership believing their employees think they care. This disconnect is a big player in staff turnover.

“Companies need to go the extra mile to attract and retain candidates if they want to hit their hiring aspirations, stay ahead of their competitors, and weather the incoming storm. In times of adversity, it’s understandable that survival instincts are to slash headcount and starve spending – but this short-term logic leaves firms bare once the turmoil is over.

With that being said, he understands employers can be afraid of the “T word” (turnover), wrongly perceiving that it reflects their leadership and values: “Some level of turnover, whether facing economic hardship or not, is part of any healthy organisation. If you train people up, they may leave to progress further and take on a higher role or they may be poached by another company for their skills and talents.

“Either of these scenarios means that as their employer, you did your job properly. Remember: running water never goes stale.”

But Jagger says to take heed: “Retaining someone who doesn’t fit the company values can easily make the whole infrastructure fail,” he says. “Put a bad apple amongst good apples, the good ones will eventually turn bad and leave.”

Maxwell Bond has grown by 4,000 per cent since its inception five years ago, despite weathering numerous economic crises, and has seen a further 45 per cent increase just in the last six months. The firm took no financial support from the government during the pandemic.

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Good management key to staff retention following the Great Resignation

New research from people analytics company, Visier, has revealed that 43% of UK employees admit to having quit their jobs due to bad management. A further 53% are currently seeking new roles due to their current manager.

In the study of 2,100 workers, 85% agree that good management is key to their happiness at work. Four in ten said they stayed in jobs longer than they planned because they had good relationships with their managers.

The majority of employees surveyed believe that flexible working is beneficial for both workers (74%) and businesses (69%). But while staff enjoy flexible hours and remote work,  it is clear that lack of face-time has been damaging for employee-manager relationships. The main contributors to this are:

  • Lack of face-to-face meetings (51%)
  • Increased working from home (44%)
  • An over-reliance on emails (44%)

Only 48% of workers are comfortable discussing their personal lives with their managers, indicating that leaders are struggling to build strong relationships with their teams.

Daniel Mason, VP EMEA of Visier, commented: “The old cliché – people don’t leave jobs, they leave managers – rings true, and the pandemic has made it harder for leaders to develop personal relationships with employees.”

“This isn’t a case of leaders becoming bad managers overnight, but instead, they are making difficult decisions with less information available to them.”

“The move to remote and hybrid working has starved managers of the opportunity to observe and meet with team members. Face-to-face interactions and other natural moments to develop a rapport are fewer, so managers should look to enhance their toolkit with data and insights to better understand and anticipate employee needs.”

When asked to identify the most valuable traits of a good manager, the most popular responses were as follows:

  • Treating people well (47%)
  • Listening to workers (47%)
  • Showing respect to all members of staff (47%)

On the other hand, the attributes of a bad manager were:

  • Failure to listen (49%)
  • Being unapproachable (47%)
  • Treating other members of staff differently (43%)
  • Shouting at the team (42%)

The most important factors for happiness in the workplace were:

  • Enjoying their work (45%)
  • Good pay (39%)
  • Good colleagues (35%)

Further data revealed that:

Sixty-two percent of the respondents felt that they currently had a good manager, and 45% believed that they could do the job better themselves. This group was questioned as to how they would improve, and their responses were:

  • 53% said they understood the concerns of other employees
  • 46% would treat all members of staff with equal respect
  • 36% would make an effort to get to know the people they manage better

Mason continues: “Businesses have spent the past few decades using data and other innovations to improve customer relationships and increase revenues. Many organisations are yet to harness these methods to better understand their most important asset – employees.”

“Every organisation already has a wealth of people data scattered throughout. Modern tools and analytics can find and organise this data to generate people insights to help you better understand and manage talent. When these insights are combined with other types of data from across the organisation, the result can drive more impactful business outcomes and unlock the next wave of growth and success.”

With employers struggling to fill vacancies and retain key talent following the Great Resignation, it’s clear that good management is essential to staff retention.

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“Trinnovo Group is purpose-led with a mission to build diversity, create inclusion, and encourage workplace innovation.” – Richard MacMillan, Chairperson, Trinnovo Group

In April, Trinnovo Group made two announcements: the appointment of Richard MacMillan to the Board of Directors as Chairperson as well as the launch of its fourth brand Equiris Consulting.

NEW CHAIRPERSON
Richard has a 25-year history in the staffing industry was CEO of health and life science staffing and services company called Independent Clinical Services (ICS) for 14 years. He led the growth and diversification of ICS through three periods of Private Equity ownership until it sold in September 2020. During his tenure, ICS completed multiple acquisitions, expanded its international presence, and developed several innovative healthcare services.

Richard commented: “Trinnovo Group is an exciting and dynamic business led by exceptionally talented people and I am delighted to join as Chairperson. Trinnovo Group is purpose-led with a mission to build diversity, create inclusion, and encourage workplace innovation. They have a unique and exciting approach to the full talent cycle. The business is flourishing, and I look forward to working with the team as they continue to diversify the business and grow internationally.”

James Cox, Trinnovo Group CEO also commented: “I am delighted to have Richard join us as Chairperson. Richard’s track record in international growth driven by an entrepreneurial and technology focused approach is second to none. The Board and I are hugely excited to work with Richard and to continue disrupting the recruitment sector via our people and delivering our vision, to be the fastest organically growing and most impactful recruitment business on the planet. Ashley Lawrence continues to support the group working with the Trinnovo Board in his new role as Founder.”

NEW BRAND
The announcement of the new brand, Equiris Consulting will enable high-growth businesses to attract, retain and develop amazing people and high-performing teams that are representative of society by ensuring that the world of work is a more inclusive and equitable place for everyone.

Equiris is a talent consultancy and solutions provider with a diversity, equity, and inclusion methodology that is focused on the full talent lifecycle including attraction, assessment, onboarding, learning and development and retention.

TIARA Recruitment Award winners 2021, Trinnovo understands that every business is unique, and focus on building strong relationships that enable them to truly understand their clients’ business strategies. This focus enables them to embed bespoke talent solutions into clients’ businesses that help them achieve sustainable growth while ensuring that diversity, equity, and inclusion are at the forefront of their strategic agenda. It works closely with its sister brands, specialist recruitment companies Trust in Soda, Broadgate and BioTalent, to offer a full wrap-around DEI focused talent solution.

Cara Myers, Talent Advisory Director at Equiris Consulting commented: “I am so incredibly excited to be launching Equiris Consulting. Across our social enterprise and unique platforms, we have inspired a lot of change within the workplace and worked hard to make it a place that is more inclusive for everyone. We recognised, however, that we have an opportunity to do more, and to not only inspire change but to also work with our clients and partners to offer very targeted DEI focused talent solutions that enable high-growth companies to scale in a way that is diverse, equitable and inclusive.”

James Cox, Trinnovo Group CEO also commented: “The Board and I are hugely excited to launch Equiris Consulting. We created Equiris Consulting because we want to provide solutions that enable high-growth, tech-enabled businesses to grow in diverse and sustainable way. We are on a mission to build diversity, create inclusion, and encourage workplace innovation, and we are excited to see the impact that will be delivered through our new talent consultancy and solutions provider.”

 

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The Great Escape and The Great Resignation result in mass exodus of workers
According to a new report by Kincannon & Reed, the disruption and upheaval caused by the pandemic during the last two years has resulted in a dramatic ripple effect across many industries, including those that ensure a safe, secure and abundant food system. Supply chain disruptions, labor shortages, implementation of safety equipment and protocols, along with the fact that stay-at-home orders upended standard operating procedures and forced on-the-spot decision making for all levels of the workforce. This, coupled with endless Zoom calls and dealing with on-edge customers and consumers, and simply supporting teams manage the ‘new normal’ made for an environment that business leaders have never seen before. It’s enough to make a person throw in the towel. And many have.

The pandemic has forced members of the workforce to take stock and re-prioritize their lives and careers – leading to a mass exodus of staff that the HR industry has dubbed “The Great Resignation”.

Scott A. Scanlon, CEO of Hunt Scanlon Media, has called it the ‘Great Escape.’ Older workers have also taken advantage of early retirement as part of the normal employment work cycle. According to the New School’s Schwartz Center for Economic Policy Analysis, roughly two million more people than expected have joined the ranks of the retired during the pandemic.

With skills shortages and The Great Resignation hammering the market, questions we should be asking are: How should company leaders manage an unexpected exodus? How can they attract new talent while also retaining the great leaders?

Kincannon & Reed’s Carolyn Schubert, Managing Director, and Jim Gerardot, managing partner, say leaders should consider five key points as they navigate this constantly evolving environment:

1. Prepare Talent for Leadership

“Many senior leaders retire for various reasons,” said Ms. Schubert. “It’s a double whammy for an industry that has also been a victim of the Great Resignation. The problem is the industry hasn’t done a very good job of succession planning and preparing others within their ranks to take on leadership roles. Companies need to put a solid succession plan in place to train, keep and promote talent.”

2. Treat Recruits Like CEOs

Ms. Schubert says the fact that there simply aren’t a lot of people changing jobs has created a talent war. “To attract and retain the best of the best, you must be forthcoming with candidates and let them know what’s possible beyond the job you’re recruiting for,” she said. “Act like you’re recruiting for a CEO job because the candidate you’re interviewing could be your next one.”

“During the recruiting process, share your financials, strategic vision and long-term goals; give candidates an opportunity to interact with board members,” said Ms. Schubert. “Make them feel important and let them know they’ll be a part of the organization in a larger way.”

3. Show Them the Money

Mr. Geradot says that today’s candidates are looking at total compensation – short and long term. “They are seeking and comparing specifics on benefit packages, relocation incentives, signing bonuses, as well as long-term incentives – all considerations when looking to attract top candidates in today’s market,” he said.

4. Be Transparent

“Be fully transparent about company culture, structure, and benefits, and the future,” said Mr. Geradot. “The current war for talent means the brightest prospects are inundated with opportunities, so they’re being selective and doing their homework to better understand a company before they step foot in the door (or log onto Zoom) for an interview.”

5. Prepare to Sell Yourself

There was a time when companies, particularly legacy companies, had the attitude: “The top candidates will want to work for us,” said Mr. Geradot. But that’s not the case anymore.

“Instead of potential employees having to sell companies on the value they can bring, the tables have turned,” he said. “Companies are in the hot seat – having to prove themselves – and start-ups seem to have a leg up on speaking to culture, values, purpose, and perks.”

 

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Is the four-day week the way to solve attrition?

MRL Consulting Group, a UK recruitment firm, has seen an incredible 95% retention rate and productivity levels increasing by 25% since introducing a four-day work week. Improvements in employee wellness also reportedly improved.

Almost 90% of employees in the company reported improvement in their mental health and a marked reduction in workplace stress while a further 95% reported that they feel more rested after having a three-day weekend. Short-term absence was reported to have reduced by almost 40%.

The six-month trial implemented for all employees is now a permanent fixture within the company due to the huge success.

David Stone, Chief Executive Officer at MRL, commented: “We are driven by results, rather than the amount of time people spend at their desks. I trusted my staff to have enough self-motivation and discipline to be able to manage their time in order to fit five days of work into four. The results generated during the six-month trial have led us to implement a four-day week working model on a permanent basis.”

Kelly Robertson, Operations Director at MRL also weighed in: “During the trial, and since implementing the four-day working week, everyone has really ramped up their activity, and people feel a lot more prepared for the week ahead after having three days to rest at the weekend.  Now, the team has more time to spend on themselves, on their mental and physical health and with their families and you can really see the difference in the mood in the office.

“I can’t think of any reason why other businesses wouldn’t want to invest in its employees’ wellbeing, as there are so many positive outcomes. If you’re an output-based organisation and you are realistic about what you want your team to achieve in the given timeframe, there’s no reason you can’t have a four-day week.”

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As we come out of the pandemic, the economy has bounced back faster and stronger than anyone imagined and the number of jobs available are at record levels.

In general, it is always wise to treat dramatic headlines or simple phrases with a large pinch of salt. My rule of thumb is this: does the person promoting the headline have an interest in it being true? If so, approach with caution.

Likewise, any survey that takes ‘intent’ and translates it into ‘certainty’ should also be handled with care. For example, a statement that ‘60% ofcandidates intend to change jobs in the next six months’ does not mean that is what’s going to happen. For the last 10 years I have fully intended to lose 10kg and do a triathlon and yet both are but still unachieved!

Which brings me to the ‘great resignation’. Despite the ubiquity of the phrase, it’s been surprisingly hard to find compelling evidence to support that it’s actually happening.

Let’s look at the evidence in favour. As we come out of the pandemic, the economy has bounced back faster and stronger than anyone imagined and the number of jobs available are at record levels. It is also a fair assumption that there is an element of catch up from candidates who have wanted to change jobs since last year but were nervous about doing so. Another factor is that September is historically an active month for jobs changes.

It is also increasingly understood that employers who refuse to consider more flexible working patterns or who appeared indifferent to the challenges of their employees during the pandemic may suffer some sort of backlash. But the ‘great resignation?’ I’m not so sure.

Let’s consider the other side of the argument. Many industries are still very challenged with employees terrified, not just about changing jobs in their sector, but about losing the one they have. There are still around one million workers about to come off furlough which will have some impact on re-dressing the imbalance in the labour market.

And if we are to talk about the ‘great resignation’, we must also look to its equal and opposite force ‘the great retention.’ The vast majority of HR and TA people can not only read, but they can count and think and figure out that something needs to be done. Whether that’s increasing salaries (around20% should do it) creating more flexible working patterns even for employees who are still required to be on site for 100% of their jobs, looking at innovative learning and development initiatives and so on and so on, they know they need to respond, and they are.

So yes, we do have a truly unique labour market right now, and no, the mismatch between supply and demand won’t last forever. In the meantime there will be a higher degree of market movement than usual but ‘the great resignation?’ I don’t think so.

Whilst the pandemic has changed many things, it hasn’t changed the fact that the best employers attract and retain the best talent but that doesn’t make much of a headline.

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