This is a subject of discussion that holds benefits for both sides of the hiring fence, attraction and retention. It is fundamentally important for us to have a deep understanding of what will attract people into a company as it also tells us what will retain them.
According to a recent three-month survey sent out to all our contacts at Xpand, a more senior or challenging role is the most likely motivator for people to move as indicated by 47 per cent of respondents. 35 per cent said they would move for a better working environment, 12 per cent for a better salary and only six per cent indicated they would move for the chance to work for a better known company.
These results are refreshing and should give faith to managers and employees that the focus must always be on the role, development and environment. Throwing money at the solution benefits neither party in the long run. Even in countries where money is currently more desirable, it is not eternally sustainable - at some point cost margins will outgrow profit margins.
Along with a more senior or challenging role as the biggest motivation to move, respondents also cited reasons including an opportunity to make a bigger contribution and an opportunity for growth in expertise. This poses two challenges for employers including how to retain employees, so they don’t feel the need to move elsewhere to develop their careers, and how to attract talent to new openings within the company.
In this regard, employers need to think about regularly promoting internally and providing opportunities for training and development. This is especially important in the current market, where economic recovery and the start of the new year has meant an increase of movement in the job market.
Similarly if you are looking to attract talent, you need to think about creating challenging roles with opportunities for development. Candidates will need to see your vacancy as a step up. If they already tick all the boxes and don’t stand to gain new skills and responsibilities, they may start looking again very soon. If a candidate has the core soft skills and attributes needed, offering them a chance to rise to a challenge can reap huge benefits in engagement and retention, showing that you are thinking about their career progression right from the start. This is particularly helpful when dealing with a scarce talent pool.
It is interesting to note that the above reason along with the search for a better working environment make up over 80 per cent of the vote. A better salary or the chance to work for a well known company appears to motivate candidates less than the lure of a better working environment, at any company, whether they are well known or not. Where wage differences are small, greater flexibility at work and extra benefits are excellent ways for employers to position themselves above their competitors in attracting the right candidates. Considering the high costs of recruiting and training a new candidate, providing a superior working environment allows companies to have consistency in their workforce while not having to deal with the added cultural and financial headaches of a regular turnover. In fact, replacing one experienced employee who earns $60,000 a year can cost a company twice that amount in replacement costs.
Kathryn Woof, Regional Practice Lead at Xpand.