Managing soaring salary expectations
As companies everywhere re-calibrate budgets to accommodate inflation and supply chain shortages, they are also faced with an increasingly demanding employee market. In the United States, the private sector alone saw a 4.5% increase in compensation year-over-year during the final quarter of 2021- the largest increase in over 20 years and a maddening reality for employers trying to stay profitable.
While this level of inflation feels unsustainable and impractical, we also must recognize that your talent is the lifeblood of your success. The good news: there ARE effective ways to flex to these new demands while also setting your company up for present AND future success in attracting and retaining the talent necessary to see your company thrive.
Top 2 areas to transform your hiring and talent retention
1. Establish and communicate your differentiated employer brand
The “balance of power” in negotiating with potential candidates is skewed today. There are simply more open roles than there is qualified talent to fill them. But data is showing that it IS possible to move the hiring conversation beyond wage alone. A recent article by HBR revealed that “9 out of 10 are willing to trade a percentage of their lifetime earnings for greater meaning at work.” Not surprisingly for many, an authentic sense of purpose matters more than money alone.
The lesson: If you haven’t updated your employer brand in years- it’s time. Smart companies are investing in creating or updating their purpose, redefining their passion and commitment, and expanding the ways they create and deliver real value for their customers and employees. Use your employer brand to elevate your position and notice the transformation in people WANTING to come work for you.
2. Create and activate a positive, consistent candidate experience
The onset of COVID forced quick changes to recruiting and hiring practices in order to accommodate the impacts of the pandemic. But now is the time to re-examine the entirety of the recruiting, hiring, and on-boarding processes to ensure that they are efficient, consistent, and adequate for our new normal. The adage “you never get a second chance to make a first impression” is still true and, for companies seeking to hire, it is now more important than ever. Not unlike dating, today’s employees are seeking to have a meaningful relationship with their employer and companies that understand this concept are most successful in the fight to win and keep the top available talent.
Standing out today requires companies to create an immediate connection with candidates followed by a courting process that feels personalized and thoughtfully tailored. This means mapping out the candidate journey and creating impactful moments throughout every touch point, including your presence on digital channels, relationships with recruiters, personalized video messages from leaders, or even just emails and letters.
The caveat: candidates aren’t just seeking connection- but authentic connection. Delivering authenticity requires knowledge of and adherence to the company brand. For example, if you lead with “Family atmosphere, honesty, development, teamwork” then these values should show throughout the entire recruiting and hiring process. Enable your recruiters to behave as brand ambassadors and equip them to be a proud spokesperson for the truest and most compelling aspects of your brand.
Summary
Yes, today’s employee culture expects “more”- but it’s not just money that talks. Compensation will always be a leading variable; however, companies delivering a clear employer brand, purpose-centric culture and impressive employee value proposition experience more cohesion in their teams, higher overall talent retention and less attrition in the first 90 days to a year after hiring.
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