Times are tight for businesses across the UK, and for the majority, this is being reflected in smaller hiring budgets, leaving recruitment teams with little room for manoeuvre when it comes to sourcing talent. But what can employers do to attract new skills without breaking the bank?
Leverage non-financial incentives
Economic growth is predicted to hit 1.1% by the end of the year and wages will keep rising, which will only stretch budgets further. Employers need to leverage non-financial perks and benefits as part of a well-rounded, holistic package to attract and retain staff on a more sustainable basis. However, to be most effective this approach should be tailored, and ideally, employees should be given the opportunity to choose perks that align with their lifestyle and needs.
According to research from our Robert Half 2024 Salary Guide, workers are seeking benefits that will help them mitigate the rising cost of living. This is best represented in the demand for additional perks such as meal and childcare vouchers, as well as fuel assistance programmes. Wellness and healthcare add-ons are also highly desirable, particularly dental care and stress reduction-related programmes. There are plenty of ways to attract staff without boosting salaries beyond required levels, and this increased focus on supporting employees could also aid retention when they join the firm.
Training and development opportunities
Offering potential staff the chance to learn and progress their skills doesn’t just help to attract new talent, it also boosts the overall ability of a company’s workforce and enables them to adapt to challenges or shifts in demand in the future. This is particularly relevant in the modern working world where there are major and rapid advancements in technology, most notably generative AI.
Our March 2024 Job Confidence Index – produced in conjunction with the Centre for Economics and Business Research – found that almost half (46%) of all employees expect their employer to plan for, and provide, relevant AI training within the next five years, showing how important this is to the workforce. Not many professionals will be attracted to roles where they think their skills might stagnate, and so, offering potential recruits the chance to expand their abilities and grow is key. This approach also helps to tackle the growing gap between graduate and new worker competency levels when they leave formal education.
Taking a flexible approach to hiring
Attracting talent is one thing, retaining their skills is another – and both employees and employers revealed in our Salary Guide research that they share concerns over heavy workloads and high burnout levels and the impact they will have. This and several other factors, including the more transient nature of the employment world, are leading to increased attrition and to professionals spending less time with individual businesses. For employers, this presents a significant issue and can leave gaps in workforces that need to be filled, often at short notice.
In order to address this, many employers are turning to the flexible workforce and hiring staff on a contract, interim or temporary basis. Bringing in the right people on a temporary basis has multiple benefits besides meeting immediate needs, though. It can also benefit the permanent workforce, who can learn from contract specialists, boosting knowledge levels of retained employees. This is an increasingly popular way of hiring in an uncertain economy, allowing businesses to recruit without committing to potentially long-term contracts, whilst also maintaining a fully resourced and productive workforce.
It’s clear that the existing workforce has shifting demands and wants a greater focus on managing current issues like the cost-of-living crisis and the evolving nature of skills requirements. However, with pay increases not always feasible, our research and knowledge of the market shows that offering benefits, including AI training or supportive packages that aid workers in their day-to-day life, will be key to talent retention and acquisition both today and in the coming years.
By Kris Harris, Regional Director Of Technology Solutions At Robert Half
