As SMEs grapple with a talent crunch amidst financial constraints, a distinct strategy emerges for acquiring and retaining the right workforce. The pivotal factor for success lies in aligning with your company culture.
Confronted by the hurdles of surging inflation, escalating interest rates, and a competitive job market, employers are encountering difficulties in securing and keeping the ideal employees for their enterprises.
In April, the Consumer Prices Index with Housing registered at 7.8%, experiencing a marginal dip from the preceding month. However, food and non-alcoholic prices witnessed a significant 19.1% surge over the past year. Simultaneously, the Bank of England’s base rate, standing at 5.5%, has reached a 15-year peak.
These challenges are compelling employees to consider job transitions, with two in five contemplating a change. The struggle to attract and retain junior employees intensifies amid this talent war, exacerbated by inadequate compensation, burnout from demanding workloads, and interpersonal relationships with superiors or colleagues being the top three reasons prompting job changes.
So, how can SMEs engage employees, prevent them from defecting to competitors, and manage costs effectively? In an era where recruitment is costly, simply offering high salaries doesn’t guarantee employee loyalty. True loyalty stems from employees feeling genuinely appreciated for their contributions and sharing a sincere interest in achieving the company’s objectives.
Establishing the right culture is pivotal in achieving this. More than three-quarters of UK adults consider a company’s culture before job application, with 56% deeming it more critical than salary for job satisfaction, according to Glassdoor’s research. Over 60% assert that their company’s culture is a decisive factor in job retention. At Benexo, we emphasize the significance of understanding what truly shapes your culture and how it plays a key role in attracting the right talent.
Setting the right culture from the outset is crucial to retaining engaged employees. If financial constraints hinder competing with market costs for talent acquisition, an alternative approach is to focus on making employees feel valued and engaged. Bringing individuals into the company at an entry level, actively engaging them, and demonstrating genuine appreciation can be a cost-effective strategy. This approach, nurturing talent internally, is often more economical than sourcing talent externally at higher costs.
When aiming to attract, retain talent, and establish the right culture, distinguishing yourself from competitors is essential. Reviewing the current employee benefits package to explore additional offerings without exorbitant costs is one effective strategy. Benexo offers a complimentary benefits audit, allowing businesses to identify options like salary exchange or sacrifice, aiding employees in saving on National Insurance costs, and offering perks such as discount vouchers for cost-effective employee benefits.
With growing pressures on the NHS and limited access to healthcare services, employees increasingly turn to employers for healthcare support. Employers can enhance healthcare support by offering services such as Virtual GP and facilitating access to healthcare through private medical insurance.
Internships provide another avenue to attract and engage talent. Widening the scope to consider internships can contribute to shaping company culture and attracting suitable talent without substantial costs.
In conclusion, as the need for supportive employers rises, understanding your workforce and cultivating the right culture become imperative. Conducting surveys, gauging employee perceptions, and making subtle changes that reflect care and support can bridge the gap between desired and existing cultures. Benexo offers an employee benefits health check, enabling businesses to align benefits packages with their workforce and culture, enhancing their ability to attract and retain talent.