1. Strengthen your employee value proposition
The CIPD defines an organisation’s employee value proposition as ‘what an organisation stands for, requires and offers as an employer.’ Often described as a psychological contract between the employer and employee, it is the expectations, beliefs and obligations of the employment relationship. By communicating this internally, the perceived value amongst employees of working for the organisation can be strengthened, fostering pride and purpose. This can then be reflected externally on literature aimed at candidates and on social media channels to capture the culture of the organisation.
With 75 per cent of employers making greater use of technology to recruit and retain according to our UK Reward Management Survey, organically advertising the culture of the business though social media can bolster this awareness and attract the right candidate. 73 per cent of respondents also said that they will analyse the results of exit interviews, so asking questions to identify the strength of the current employer brand can be one way of stress testing the effectiveness of the existing strategy. This can help to more accurately target your messaging around what you want to be known for.
2. Prepare a pipeline of future leaders
Your pipeline of talent is crucial, particularly as recruitment and retention challenges have ebbed and flowed over the ten years that we have been running our UK Reward Management Survey. When considering succession and developing leaders of the future, performance management is key. Business leaders required to drive the organisation forward can be fostered from the beginning of their employee journey.
Often employees are promoted based on performance, meaning many reach management level without these distinct skillsets being fully supported up until the point they are needed. Therefore, having leadership training available regardless of seniority, equipping people for future roles, is one way in which leadership can be secured for the future. Investment in skills and talent development for the future is at risk given constrained budgets, but this is critical to safeguarding business agility.
3. Consider a long-term reward framework
How you recruit and attract new candidates can impact the overall reward framework of your organisation. One in eight employers are offering golden handshakes to entice new joiners; with two thirds of adults worried about their finances now, compared to one third during the pandemic, this can prove a valuable tool. However, 67 per cent of respondents to our UK Reward Management Survey said that they will focus on communicating the wider reward package more clearly, highlighting how demonstrating the full investment made by the employer in each employee will be important in times of constrained pay. Many employers are making greater use of Total Reward Statements that outline this in full.
Our UK Reward Management Survey revealed that 71 per cent offered new recruits salaries that conflicted with those paid to existing employees in autumn 2022, an increase from 57 per cent in autumn 2021. This may reflect how those currently moving are looking for greater financial reassurance to make the move from stable roles. 65 per cent have offered up to 10 per cent more than paid to current employees, whilst 32 per cent have offered up to 20 per cent more; this runs the risk of creating pay parity issues within the organisation and de-motivating loyal employees.