Fair salaries and opportunities to advance: What employees really want

The great resignation was a monumental disruption. An employee revolving door and the consequent,
relentless search for talent left many hiring managers stressed and feeling hopeless…how to deliver the impossible?

The skills shortage was the catalyst for the great resignation, and every business felt the impact. But that’s last year’s story. Surely, with the recent global redundancies and the United States job market, referred to as a white-collar recession, unemployment levels will adjust, making 2023 different. I’m afraid not.

So, how to avoid another great resignation? It is your organisation’s sticking power.

1. Know your workforce drivers

In any other time of such significant worldwide redundancies and economic instability, job security would be our workforce’s number one concern. But not when your employees are also combatting the stratospheric costs of living. The global inflation rate peaked at 8.8 per cent in 2022, and the International Monetary Fund (IMF) forecasts 6.6 per cent for 2023. Compared to pre-pandemic times of 3.51 per cent in 2019, it is a marked difference. The decision to resign in today’s environment is less likely a 2022 whimsical driver and more of a 2023 necessity.

Whilst paying sky-high salaries is never an advocated strategy, paying fairly and equally is recommended. What if you have already paid generously in 2022 and without a budget for further increases? Look to benefits that alleviate financial pressure for your employees. Whilst not a substitute for competitive salaries, there are some worthwhile considerations. Working from home saves money on commuting costs, even work attire and food. Additionally, consider superannuation contributions, lunches and meals at work, health care and performance bonuses.

2. Get close to your team

Know your employees well, and I mean really well. Relationships are the lynchpin to securing talent, and you hold the key as a leader. We look after our working capital with clockwork and precision care. We even have insurance for some items. Services and checks are never missed because we know it is crucial for ongoing operating efficiency.

Our human capital is no different. Your employees need the same, if not more care and consideration, and on time every time. Those casual catch-ups or coffees promised, which are sometimes missed, make a big difference. The performance review that has been rescheduled one too many times; also matters. These are times to connect, further establish trust and pick up on subtle signs and signals, circumnavigating a resignation well before it touches the subconscious.

Consider conducting ‘stay interviews’. Why wait to discover the reasons your employees are leaving Unless you are incredibly adept at influencing, the chances of turning the decision around are low. And, if you do, welcome to the resignation waiting room, anticipating the next change of heart. Instead, discover the reasons why people enjoy their job. The exercise of provoking these thoughts reinforces positive feelings and attitudes. It’s contagious and has a power unto itself when said aloud.

3. Workplace flex

Flexibility in every way is sought. The opportunity to work from home and or hybrid is just the beginning. Leaving early, later starts, reduced hours, 4-day weeks etc., to fit in life’s priorities are the minimum expectations from today’s workforce, and it is not just for families. The collective, across all generations and demographics, expects the freedom and flexibility to pursue what is important to them, whether that be education, sport, leisure, travel, etc.

It doesn’t stop there. The notion of workplace flex has evolved into so much more. It caters to the attitude of how we tackle, approach, and problem-solve work and job-related issues. It requires an enterprising mindset, with a keen view to exploring possibilities, opening opportunities and new pathways, and even taking risks in testing prospective solutions. Saying no or ‘that’s not how we do it’ is an archaic outlook in a fresh, rapidly developing and fluid world. It is our new-work phenomenon.

4. Opportunities to advance

Your employees want opportunities to develop and grow. In 2021, according to a Pew research report, 63 per cent of employee resignations were due to a lack of opportunities to advance. Well, in 2023, so much has changed. Organisations need their employees to take up the challenge. Due to the severity of the skills shortage, new hires and internal promotions have required a different perspective on talent.

Compromise has been key, with the need to upskill and reskill our employees. It takes time to come up to speed in ‘normal’ hiring times, let alone when the skills gap and deficit are significant. When taking such a leap and stepping up, your employees need a supportive work environment where they feel psychologically safe, secure and allowed to make mistakes. Nothing will push your employees out the door quicker than the feeling of failure and not being successful.

Being in an uncomfortable zone is stressful enough. Make it a ‘good stress’ of achievement and progress, not deflation and demotivation. To support such a hiring strategy, instil nurturing, teaching, and patience as an environmental and cultural norm. Learning environments attract and keep people. Such is the level of importance; we see progressive companies appointing chief learning officers. Even better, companies that excel at internal mobility retain employees for an average of 5.4 years.

5. You

Managers and leaders are the glue. They always have been. The virtues of organisational leadership have been touted ad nauseam. I am just not sure we have listened until now. The workplace has changed since the pandemic, and our employees play a different role. The dynamic has shifted, and so too has the expectation on our leaders. The beliefs and values of how career and work fit with our lives are different and becoming more elusive to define. Our employees now expect work to promote and support the vision of their life’s meaning and, thus, see leaders as partners in that quest.

Leaders are involved and participate in individual goals more than ever before. To be a successful promoter of your evolving employee needs requires leadership skills to care, nurture, mentor, inspire and yes, it must be genuine. The full involvement and cooperation of those in authority and leadership is imperative.

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