With job openings rising to 11.3 million in JanuaryOpens a new window , according to the U.S. Bureau of Labor Statistics, and quit rates staying roughly the same, there’s no question the labor shortages have followed us into the new year. According to the same report, 6.3 million Americans are currently seeking employment. Employee expectations of the compensation and benefits landscape have changed significantly in the past six months. Many companies are forced to catch up quickly or risk losing workers to the Great Resignation. In hopes of attracting talent, companies have now started to increase wages. In fact, according to beqom’s Employee Expectations in Hiring ReportOpens a new window , nearly two-thirds (64%) of Americans prioritize pay as the most important factor when considering a job offer.
However, salary isn’t the only factor swaying workers to take on new positions. Certain benefits can make or break employees’ decision whether or not to accept a new role. Â
So, what can businesses do moving forward in 2022 to recruit top talent to their organizations, and how can technology help?Â
-
Improving Flexibility and Work-life Balance
Flexibility has become a top incentive for prospective employees when looking for a new job, as the pandemic has altered how many think about work-life balance. For example, according to our study, more than four in five (82%) employees now expect their future employer to offer flexible work hours. About 80% expect to have the ability to work remotely several times a week. More than three-quarters (77%) of Americans would even take a salary lower than the market average if they had flexibility in working hours, and 70% would take the lower salary for more PTO days. Conversations around paid leave and work-life balance for parents specifically have also heightened, and parental benefits have become a key factor for Americans evaluating new roles. The report found two-thirds (67%) expect their future employer to have paid parental leave. More than half (52%) expect a childcare stipend, underscoring the emphasis employees are putting on their current or future families.Â
However, flexibility in hours and location requires a permanent technology overhaul. While many companies have been forced to implement this tech infrastructure due to the pandemic, nearly one in five employeesOpens a new window don’t have the technology they need to stay connected to their manager and team when working remotely, according to Quantum Workplace. But when given the right materials and tech to work from home, 81% of hybrid employees are highly engaged.Â
2. Implementing Pay Transparency
Compensation is still the top driver for future employees accepting a job offer, with nearly two-thirds (63%) aware of the current industry benchmark pay for their desired role.Â
However, a higher salary is not always the end-all, be-all for new employees. About 68% would take a lower salary if there were transparency about salary benchmarks within the organization, indicating the importance of both pay transparency and equity to prospective candidates. In fact, candidates believe companies should be even more transparent, with 70% of respondents believing companies should disclose their overall pay gaps.Â
For companies looking to be more transparent in their compensation processes, turning to pay data and technology is key. Organizations can utilize technology to uncover industry benchmarks, create appropriate salary ranges (with consistent and transparent criteria for assigning pay to individuals) and monitor any potential pay gaps. With decision-making criteria in motion, predictive analytics can take over to create more automated compensation decisions, taking out any human emotion from the equation. From there, transparent communication to employees around salary ranges and how the decisions are being made is critical to employee retention and engagement.Â
But transparency is important even before employment or the offer letter. According to our study Opens a new window mentioned above, 27% of candidates think their future employer should specify a salary in job postings, and if the job posting includes those pay details, 61% candidates would be more inclined to apply. Although some states have enforced laws requiring companies to disclose pay ranges, even businesses that aren’t required should still consider adding salary ranges to job postings to attract a wider candidate pool.
See More: How to Make Pay Transparency Part of HR Strategy: Featuring Starbucks, BBC, Whole Foods, Etc.
3. Furthering Corporate Social Responsibility (CSR) Efforts
In the past two years, employees have realized that where and how they spend their time is incredibly valuable, making it even more crucial for companies to engage staff in mission-driven work that makes them feel fulfilled and motivated. Employees are holding companies to a higher standard and want to know that their employer is responsible from a social, health and environmental perspective. About 76% of candidates reported that how a business responded to the pandemic would influence whether they apply for a job. About 66% do more research on a prospective employer’s CSR efforts now than before the pandemic. The bottom line is that employees want to be part of a company that cares for its employees and the world, and if companies don’t adapt, they’ll lose out on new workers.
Driving CSR efforts through data is an important step in helping employees feel valued and involved. From collecting feedback on specific efforts employees care about to measuring and reporting on relevant progress and keeping both stakeholders and employees aligned, technology can greatly change how companies are moving the needle with CSR efforts.Â
As we move through 2022, it’s critical for companies to consider how employees’ needs have changed over the last two years and how technology can play a part in increasing retention and attraction during these critical labor shortages. By homing in on what employees’ value — flexibility and work-life balance, pay transparency and corporate social responsibility — employers will have an advantage in the hiring marketplace and can take steps to attract and retain employees for the long haul.
What steps have you taken to retain and attract top talent? And how are you leveraging technology to do it? Let us know on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .