by Susan Hanold
As employers look to recruit and retain new talent, there are multiple trends driving the talent shortage, from slower population growth and a smaller labor pool to higher turnover. The changing priorities and needs of employees — and the strains on talent in the labor market — continually influence the dynamic between employers and employees.
Employers find themselves pouring over scores of resumes, making connections, even being ghosted, and continually looking for ways to establish a long-term, successful partnership. Here are some tips to help you navigate in this new world:
Be Clear on What You Want and What You Are Looking For
In the employer/employee relationship, one needs to clearly state their intentions and often, may need to act quickly — candidates may lose interest or receive other offers if they’re kept waiting.
Ghosting is the practice of ending a personal relationship with someone by suddenly and without explanation withdrawing from all communication. With so much activity in the recruiting and hiring arena, candidates ghosting employers and employers ghosting candidates has become a real issue.
There is an opportunity to improve the relationship with touch points and communication. Having an Employee Value Proposition (EVP) that is authentic, represents the company values and that each recruiter and hiring manager can align with and articulate can be a differentiator. Providing an authentic representation of yourself may provide returns over the longer term. The onus is on the candidate too in this scenario. They should be asking questions to determine if there’s a natural fit for them in the organization. One CHRO told me she has started to see this shift. She recently had a candidate ask her for HR turnover metrics as if the candidate was interviewing her! This is a positive development and can decrease mismatches on both sides of the relationship.
Listening
In a relationship, listening to each other’s unique needs and responding accordingly are important. The same can be applied in the work environment. If we are focused on higher-than-average compensation, but our employee wants to work remotely, we have not aligned with what matters to them. Remote work is becoming a make-or-break factor for many job hunters.
Speaking of compensation…
There is significant chatter in the marketplace that employees who are staying are missing out on significant sign-on bonuses. Though, I also had a CHRO tell me that pay is an enticer, but culture is the retainer.
This tells me that compensation remains a priority, and we need to get it right. While compensation is important, culture is equally so, or even more so, in terms of retention. There are three areas to consider in your compensation strategy: benchmarking, salary structure and pay transparency.
Companies can help attract and win more applicants with competitive compensation by utilizing reliable benchmarks that are based on a combination of geography and industry. Having a salary structure with job grades will provide the foundation to make sure all employees are paid equitably. Pay transparency is increasing with social media sites sharing salaries and laws. Many jurisdictions like NYC, Colorado, Maryland, Washington State, California, Nevada, Connecticut, and Rhode Island are requiring a level of pay transparency. From a federal and state standpoint, most states have pay equity laws (only AL, MS and NC do not). While compensation may not always be the priority, you still need to make sure your compensation philosophy effectively attracts and keeps top talent.
Connecting on a Deeper Level
While the “newness” of a new position or experience will wear off over time, employers need to find ways to keep talent connected. Recent studies show engagement is at an all-time low which means in some cases, employees are showing up but demonstrating little productivity. So how do you keep the experience exciting and fulfilling? As in any healthy relationship, employees want to know that their partner is taking time to get to know them and provide them the attention they desire. Employees want their leaders to ask questions to build connection:
- Do you know what I’m working on?
- Do you know what my issues are?
There is a need for leaders to listen to the changing needs of their people and implement practices that encourage two-way communication. Below are a few tips a leader can put into practice to make a difference:
- Leverage pulse surveys to gather feedback
- Hold open listening forums
- Be inclusive of all types of workers
- Be agile – if you fail, fail fast and move on
Employees desire recognition for good work, while still being challenged to continually grow.
Keep Your Options Open
The talent shortage has forced many employers to consider bringing back employees who have previously worked for the company, often referred to as alumni or boomerangs. It’s not uncommon now for companies to post boomerang videos on social media showcasing the return of former employees. One CHRO explained this concept: creating boomerang videos for new hire onboarding sessions shows that employees are often happy to return and share their stories. Companies can enhance their employee value proposition (EVP) by sharing the “why” externally, to highlight the draw the company has on past workers.
A friend who recently retired told me she was contacted by her former company to see if she would be interested in coming back to work for them. She became part of an alumni network that allowed her to stay connected on news in the market and attend educational sessions. She returned to the company on a part-time basis in a different role to see how it goes. Keeping in touch with current and past employees encourages alumni to reimagine their career and retirement transition.
Like any healthy relationship, the one shared by an employer with its people, should be a partnership with equal responsibility, supported by good communication and the foundational building block of trust. Both parties must connect, engage, and act on a consistent and sustained basis, or the relationship suffers. When a strong connection is made, fewer issues surface and the likelihood that you are not a match decrease.
ADP
Vice President
Strategic Advisory Services