Bouncing Back from the Pandemic
The labor market has changed drastically in the post-pandemic economy. But surprisingly, the labor shortage isn’t caused by a lack of available workers, it’s caused by record-high numbers of workers quitting and retiring, looking for new career opportunities and higher pay. Furthermore, a survey by PwC shows 1 in 5 employees plan to leave their current job in the next 12 months! This leaves employers urgently seeking workers and trying desperately to hold on to the employees they have. Below are ways employers can attract and retain employees in the post-pandemic economy.
Allowing flexibility within a job significantly widens the pool of potential employees. If employees don’t have to work in a specific location or at specific times, the number of available candidates is not nearly as restricted. Flexibility is also highly attractive to current and potential employees. Consider allowing flexibility in any and all areas that are feasible for your company. These might include remote work options, full time, part time, and freelance options, flexibility regarding time of day and day of the week, and more. Greater flexibility brings in more employees and leads to greater employee retention.
Provide Development Opportunities
According to Boston Consulting Group, workers with low levels of education were hit hardest in the pandemic, financially speaking. Workers found themselves most at risk for losing their jobs when the job required no more than a high school diploma. To combat this, companies can offer educational opportunities and career advancement opportunities. When companies offer to retrain workers or teach them a new skill, the employees are more likely to stay. Similarly, the more training and education employees have, the less their jobs are at risk.
Additionally, providing opportunities to grow shows your employees you value them. It demonstrates you value their skills, including newly acquired skills, more than those of a new hire. If your employees think they can be easily replaced, they won’t have much incentive to stay. But if they feel valued, appreciated, and supported on a career path, they are more likely to remain with their employer long term.
Offer Sign-On Bonuses
Attract new employees by offering sign-on bonuses. Sign-on bonuses are popular among companies that are urgently hiring because they reward those who accept the job offer with an immediate benefit beyond a paycheck. It’s also a one-time expense for the company and can be more affordable than ongoing wage increases. Coupled with on-the-job training for inexperienced workers, sign-on bonuses present a very attractive offer to potential employees.
Offer Retention Bonuses
Incentivize loyalty by offering your current employees perks for staying with the company. As they stay longer, their benefits can increase. For example, you might give an employee a small bonus after one year, then student loan payoff after 10 years. Reward your loyal employees and give them reasons to stay that go beyond the paycheck they could earn elsewhere.
Including perks for your employees is a great way to set your company apart from the others who offer the same wage. Perks can include meals, outings, products, educational courses, vacation time, and more. One employee perk with increasing popularity is financial wellness. The majority of Americans experienced financial struggle to some degree during the pandemic. By offering financial education, you can help your employees manage their paychecks efficiently. This will allow them to remain with your company instead of having to seek a higher-paying job. Find out how 101 Financial’s Workplace Wellness program is an employee perk that can help you attract and retain workers.
Most managers and business owners dedicate a lot of time to being competitive in their industry, but in today’s labor market, it’s important to be competitive as an employer. By investing time and resources into your employee wellbeing, you attract new employees and retain your good employees long term, which saves the company time and money in the long run.