What is your company doing to actively retain their employees and attract the best talent? It costs a staggering £5433 to replace an employee; factor in re-training and productivity loss and it’s over £30,500. 

 

The New Year brings with it a chance to reflect on the past 12 months; considering what worked well in your business and revelling in everything you have achieved. Still, it also provides an opportunity to consider how we’ve collectively adapted to the challenges we faced in 2021; and there have been many! The past year has presented us with further covid challenges, on the back of a promise that the back end of 2021 would surely see everything return to business as usual; however UK vacancies are at all time high, and we are still in the murky midst’s of the “Great Resignation”; employees are still working remotely in many sectors, and we’ve seen entire industries grind to a hesitant halt as productivity is disrupted by large numbers of people isolating.  

Does 2022 bring with it a glimmer of hope? The New Year is the perfect time to consider what you want to achieve for the coming year, both personally and in business. And this is the key! As a business owner you will be contemplating what success looks like; you’ll be setting goals and targets and putting a plan in place to achieve them… however your employees will be doing the same. Your employees will be doing the same. Because it’s also the perfect time for individuals to reflect on the past twelve months and consider what they want to achieve moving forward. Sure, they’ll have goals outside of work which focus on wellbeing and hobbies, finances and family, but they will also be asking questions about their career and whether working with your company is going to help support their professional growth.

This provides you with the perfect opportunity this January to think about your Employer Value Proposition (EVP) and essentially support your employees by paving a way to help them meet their own personal targets. By asking “what does success look like for you?” and “what are your aspirations for the coming year?” you can explore together and succeed together. Planning your people development early will allow you to plan for future growth - both short and long term. What skills can your people develop now to make them perform better in the future?

But why now?

Employers across sectors have struggled to both recruit and retain talent in the past 6 months. It’s a candidate driven market and with an estimated 35 million vacancies available across the UK, it appears there are plenty of options for people. But why do people move to pastures new?

How people have been treated during the pandemic has led to what economists have dubbed the ‘Great Resignation’; with HR software company Personia reporting that 38% of people surveyed were planning on leaving their jobs within the next 6 months. But why? Here are the top reasons why your employees might jump ship:

1. No progression 

A survey conducted by Career Addict found that a massive 82% of people would consider quitting their jobs if they felt there was a lack of progression in their role, claiming that people actually seek out career opportunities which allow them to meet career milestones.

 

2. Low Pay… and No Pay Raise

It’s certainly not rocket science. If you’re competitor is paying a higher salary for the same role, then you are in danger of losing employees. However, this isn’t always the case; while people do leave for a pay increase, there are factors which can still encourage people to stay. A positive work environment, a thriving company culture and a fulfilling role could tip the balance in your favour to retain people.

Interestingly the survey found that 35% or people, once leaving, said they would return to a previous job if the salary was higher. A pay increment offers an employee recognition and makes them feel like a valued member of the team where their hard work is appreciated. And the best pay rise? The one you don’t have to beg for!

 

3. Bad Leadership

High employee turnover is often the result of bad leadership with poor management and bad communication leading to low morale and job dissatisfaction. The study suggested that up to 79% of employees would consider quitting because of their boss.

 

4. Bad Working Environments

Workers have always cared about their work environment; but the pandemic has certainly challenged the status quo on this one. We’ve seen a tangible shift from work-life balance to one which favours life-work balance with people considering what is actually important to them. The Personio report found that more than half of respondents were prepared to leave their roles because of a worsening work-life balance or a toxic working culture. How companies handled happiness and wellbeing during covid has left a lasting impression on how people perceive their company and critique how they have been treated.

 

Changes haven’t just come about since the pandemic; the shift was happening before this. Ultimately, people just have higher expectations. Higher expectations of their Line Managers and overall higher expectation of the companies they work for. Some might pose the question - and why not? Companies need to respond to this by offering a better Employer Value Proposition; a set of attributes that the market and the employee perceive as the value they gain through their employment; what is their ROI on the skills and commitment they offer your company? Your EVP is often an overlooked asset; and can be fundamental in improving your recruitment strategy and retaining people.

Many companies focus on their value proposition from a client and customer angle; what makes our company a better service provider than the competition? Why should we place as much emphasis on our Employer Value Proposition? Well, why wouldn’t we! Engaged employees are happier at work and more productive. It is costly to lose an employee; research by BrightHR suggests that the average cost to replace an employee is around £5433, but when you factor in the loss of productivity plus the time it takes to retrain your new hire, they estimate the cost to be as high as £30,614. According to research by Gartner, it was found that “Organisations that effectively deliver on their EVP can decrease annual employee turnover by just under 70% and increase new hire commitment by nearly 30%”.

What should a good EVP include?

A good EVP should provide a combination of bother tangible (salary, leave entitlement, health benefits, etc) and intangible benefits (diversity, inclusivity, culture, progression, job satisfaction, the list is endless!).

However, each workplace is different, and your EVP should reflect this; this is more than just a branding exercise! Your EVP must appeal to all employees - different ages, genders, cultures, and role functions. 

 

To be competitive, it’s no longer about the salary on offer; it’s a myriad of benefits that will help keep your employee engaged and happy… and more importantly help keep them in your business.

 

 

“The secret of change is to focus all your energy not on fighting the old but on building the new.” — Socrates

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