Emerging insights from our autumn 2023 UK Reward Management Survey

4. The ongoing war for talent

This is complicated by the ongoing war for talent. Recruitment and retention challenges remain high for around two thirds of respondents who face labour shortages, a lack of suitable candidates and candidates being offered higher salaries elsewhere.

Affordability will have to be balanced with the need to drive down employee turnover when shaping recruitment and retention strategies. The increasing use of offering salaries to new staff that conflict with those paid to existing staff risks parity of pay, so offering greater support and development opportunities may be a more sustainable approach. Examining the culture of an organisation and fostering a place where people want to join and stay is important.

The majority of respondents so far anticipate that the number and size of bonus payments will stay the same. While some are saying that it is too early to tell about the impact of the business outlook and wider economic climate on bonus payments, no one so far has said that payments will reduce, as bonus packages supplement the picture on total reward as a key recruitment and retention strategy.

5. Employee leave practices

Our autumn survey explores the various types of paid and unpaid leave available to employees. From bereavement leave to fertility treatments, vital milestones in employees’ lives are increasingly being recognised by employers.

There is a greater focus on individual wellbeing and a greater understanding that the employee requires time and space in these tumultuous periods before they can expect them to get back to delivering their best work.

Awareness has been a huge part of this for things such as miscarriages, where people talk more openly about the impact on them in these circumstances and the impact on mental health. The CIPD has also reported that sickness levels are at a 10-year high due to the combination of work-pressure, Covid and the cost of living crisis, so we will explore the picture facing employers when it comes to managing leave.

We are also capturing those who are using days of leave that they dedicate to charity and volunteering. This is one way of not only giving back to the community in which the organisation operates, but it also brings your values to life through your people.