Competition in the Talent Market: Why Retaining Talent is difficult these days
Competition in the talent market… our recruitment team is seeing a lot of it these days with candidates’ wage expectations not lining up with what employers are willing to pay. Our team has been very busy with Compensation Analysis projects and Market Evaluations lately and we stumbled across some information that we felt you might be interested in.
In a recent article published by HR Reporter, they stated that over 2 in 5 workers say raises are needed to address staff turnover. However, less than 1 in 5 employers agree with this (Wilson, 2022). Furthermore, more than two in five employees globally are prepared to look for other opportunities and quit their job over the next year. Wilson (2022) states that the reason for this is that 35% of employees are looking for a salary increase. If we think about this for a moment, it may seem like a lot of businesses are looking at the bottom line of their budget rather than what the current market is showing. Aligning an organization’s compensation strategy with market standards is an important part of attracting and retaining talent. The paradigm continues to shift with organizations now offering flexible work schedules, more pay, and other benefits to potential employees. As employees around the world feel more empowered to leave their jobs if expectations are not met, higher pay is now the biggest motivation for changing jobs (Wilson, 2022). In another survey, 41% of respondents said that salary increases were the way to get workers to stay within an organization (Wilson, 2022). Inflation and the increase in the cost of living are large factors in this and employees are placing more importance on salary when evaluating job opportunities. Understanding and keeping employees satisfied goes hand in hand with creating a great workplace culture. With the labour market being as tough as it is, it is important to maximize efforts to retain top talent. We are finding more of our clients are asking us to do analysis and investigation work into the health of their workforces to ensure that these pain points are identified and resolved. If you at all feel lost about where to start with checking the health of your workforce, give us a call! We can help.
Wilson, J. (2022, May 18). Canadian workers more dissatisfied than ever. HR Reporter. https://www.hrreporter.com/focus-areas/compensation-and-benefits/will-higher-pay-stop-people-from-quitting/365979
Wilson, J. (2022, April 21). Will higher pay stop people from quitting? HR Reporter. https://www.hrreporter.com/focus-areas/compensation-and-benefits/canadian-workers-more-dissatisfied-than-ever/366733