How can employers tackle recruitment and retention issues?

As the general election approaches, plans affecting the economy will take centre stage in manifestos published this week. The skills shortage and issues regarding immigration are under the spotlight, alongside scrutiny over how leaders will drive down inflation to ease the ongoing cost of living pressures on employees.

We examine how employers can use their total reward strategy to unlock the power of their employer brand to drive down recruitment and retention issues they face.

Priorities for 2024

April remains the most popular month to carry out pay reviews across organisations, meaning many employers will have already have made decisions regarding pay awards. While many employers implemented the highest pay awards in over a decade during the last two years, many are looking at their pay and reward approach holistically to define the total reward strategy for the year ahead.

Pay benchmarking and looking at the efficiency and success of the pay review process are key priorities for HR agendas in the year ahead. Making sure that internal processes are accurate and follow best practice is important to reassure employees that they are the subject of an objective and fair reward system.

People are increasingly seeking transparency and fairness, making pay benchmarking essential. This helps drive down employee turnover, bolstering recruitment and retention when people know they are being paid competitively and equitably. Achieving pay parity and benefits benchmarking are key objectives for HR in 2024, highlighting the role that HR has to play in delivering a robust system that attracts and retains the right talent.

Culture wars

The war for talent persists, especially when certain skills are highly sought and there is competition for certain roles and experience. However, with the pressure on pay packets and employers striving to deliver meaningful pay awards within affordable budgets, having a strong employer brand can achieve differentiation beyond the question of pay and benefits.

This starts with understanding the culture of the organisation. Taking stock of what the reality of the culture and working environment is should be the starting point to really understand if there is any discrepancy between what a firm promises its people and what it is delivering.

Organisations that can define what they stand for and what they offer people, and where the leadership team sets the tone around the culture they are intentionally creating, truly build a brand that has a shared vision. Organisations must be consistent with the message and the behaviours they want to reinforce. Employee advocates are crucial to building a strong employer brand. Social media should echo and amplify practices that are already rife internally. Recognition of colleagues who have been recognised for their expertise or values-led work, such as pro bono/charity, being an LGBTQ+ or social mobility advocate in the sector, show the culture in action from an external perspective.