One of the most significant challenges organizations face today is talent scarcity. The current skills gap is a result of a combination of structural factors: a shortfall in the number of graduates with specialty degrees, insufficient training and development efforts by both employers and governments, and a lack of incentives in some industries. Years in the making, this gap results in costly delays and protracted time to hire for companies worldwide.
In response, employers are reconsidering current employee value propositions in order to attract and retain top talent, including both monetary and non-financial incentives.
According to our recent Workmonitor survey, just 22% of respondents say they have received enhanced benefits such as paid time off, more generous healthcare provisions and better retirement plans in the past 12 months. In addition, just under one-third received wage increases or training and development in the last year.
The majority of respondents feel that work is essential to their sense of self (72%). With competition for skills at an all-time high, a strong attraction strategy can help companies stay ahead of the rest. Our recent Workmonitor survey revealed 4 key value propositions employees want:
- Financial incentives
- Job flexibility
- Training and development opportunities
- Better employee benefits
With inflation at historic highs, better pay is top of mind for the global workforce. According to our survey, most respondents aren’t getting an increase in compensation to address the rising cost of living.
Employee age does play a factor in monetary compensation. Two-fifths of 18-35-year-olds received a pay raise in the last 12 months, but just over a quarter (28%) of those over 55 received one. In addition, 36 percent of the youngest employees received a contract during that time while just 12 percent of the oldest group did.
Paying competitive rates is imperative in today’s talent market. Beyond this, organizations that clearly articulate their enhanced value propositions, including financial incentives, will endear both current and prospective employees to their brand.
Throughout the pandemic, job flexibility helped keep organizations – and the global economy – afloat. Two years later, this opportunity, including remote work and flexible hours, remains.
In the last 12 months:
- 62% of respondents saw no change in work hour flexibility
- 61% of respondents saw no change in where they can work
With pandemic restrictions lifted, most offices around the world are free to reopen. However, employees today enjoy a more flexible schedule and companies seem apt to retain work-from-home policies. While this practice may prove advantageous in a quest for top talent, cohesiveness as an organization is also a consideration.
One way for companies to maintain job flexibility while promoting cohesiveness is to recognize individual employees in the empowerment process. This can boost morale, encourage friendly competition and stimulate innovation regardless of location.
training and development opportunities
Today’s labor market continues to evolve. Another key strategy to keep current employees and attract new ones is to offer enhanced training and development opportunities. This way, talent can continue to improve their employability.
40 percent of 18-24-year-olds had new training and development opportunities in the past year, while just 13 percent of the oldest age group reported the same.
While organizations tend to focus development on younger age groups, in today’s market talent of all ages can benefit from these opportunities. Employers can make learning and development an everyday event through microlearning. This allows companies to incrementally upskill their workforce while making the process manageable for employees. The result is employees that feel both engaged and confident about their careers.
better employee benefits
As previously mentioned, just 22 percent of survey respondents say they have received enhanced benefits such as employee PTO, more generous healthcare provisions and better retirement plans in the past 12 months.
A notable gap exists between generations
- 36%: 18-24 year-olds received enhanced benefits
- 9%: 55-67 year-olds received enhanced benefits
Better employee benefits are a powerful way to add value proposition to an organization. However, the most important benefits can change for employees as they age. For example, younger age groups may want more PTO to travel while health benefits and pensions are attractive to older generations. This means a focus on enhanced benefits for all ages is prudent.
To stay competitive, organizations should track how incentive practices are shifting as a result of talent scarcity and adjust attraction strategies as needed.
Around the world, about one-quarter of survey respondents are actively seeking new employment at any time. However, nearly two-thirds are committed to their current employer. This means companies have an opportunity to focus on enhanced value propositions that align with employee expectations. The alternative - falling behind in today’s competitive labor market - can result in delayed work completion and loss of growth opportunities.
The right combination of financial and non-monetary incentives will create an attraction strategy that promotes employee loyalty and appeals to job seekers. With strong value propositions, companies can experience growth and opportunity despite talent scarcity.