The latest statistics from the Office of National Statistics (June 2022) show that there is a record 29.6 million people in employment in the UK and the unemployment rate decreased to 3.8%. The number of job vacancies rose from March to May 2022, standing at 1,300,000, and the growth in vacancies continues.
This data comes on top of a Chartered Institute of Personnel and Development (CIPD) Labour Market Outlook report which noted that up to 45% of employers have vacancies that they are struggling to fill, with the most commonly affected sectors being healthcare, the voluntary sector and education.
This information highlights the complexities and difficulties faced by managers in the UK at the moment when they are looking to recruit.
Here, we look at some of the issues and examine what organisations can do to tackle the pressures.
The issue of attracting the right talent for your organisation has rarely been so pressing. Hiring managers are facing unprecedented recruitment difficulties, many of which are linked to the global talent shortage, and fierce competition for candidates to fill vacancies.
The situation has many contributing factors including the ongoing impact of Brexit, and more recently the knock-on effect of the Covid-19 pandemic and subsequent lockdowns. The latter has had a very specific effect on hiring managers’ ability to source talent, in that many people of all ages took the opportunity to reassess their outlook towards work, leading to ‘The Great Resignation’.
These factors have led not only to a shortage of candidates but also to vacancies remaining open for longer. This then increases pressure on both organisations that are desperate to fill vacancies, and hiring managers who are doing all they can to solve the problem.
If your organisation is experiencing the effects of the “Great Resignation”, you’ll know how difficult it has been and you’ll understand the importance of making sure that your talent stays in place.
Retaining your people has many benefits, not least of which is cost reduction, but also maintaining morale, increasing productivity, preserving the experience that an employee brings to their role, and enhancing the customer experience. It’s an area that managers need to focus on but that many find increasingly difficult due to increased workloads, budget constraints and issues completely out of their control.
One of the key issues surrounding the current talent retention situation is ensuring that your employees are receiving a salary and benefit package that retains them. It is increasingly challenging to stay ahead of the external market with increasing economic pressures such as high inflation, increased cost of living and other employers offering high salaries to attract your employees. With most companies navigating budget limitations, high salary increases may not necessarily be an option.
This is where Omni comes into their own. We offer you market data on the current levels of salary and benefit packages in your industry, helping you realistically plan budgets, and assist you with those difficult decisions about salary vs enhanced benefit packages.
It’s becoming increasingly important that organisations can differentiate themselves from their competitors in order to attract the best talent. One way of doing this is through employer branding – how organisations market themselves to potential employees. Employer branding should encompass a company’s values, ethical standards and support for ESG and D&I, as well as how it treats its employees.
As part of their employer branding, many companies have also developed an Employee Value Proposition (EVP) to highlight what they can offer potential employees in return for the talent’s skills and experience.
It can be difficult to be objective when you work within an organisation, and it’s also hard for busy HR functions and managers to find the time to develop such a vital strategy. However, if organisations want to both attract and retain the very best talent for their needs, both Employer Branding and an EVP must be a priority. Omni can work with you to develop your Employer Brand and EVP through a detailed evaluation to help you discover what’s unique and relevant about your company.
Employer branding and EVP is often down to talent acquisition or HR teams within an organisation, and the responsibility for engaging talent lies with the hiring managers. With that being said, knowing and understanding your EVP is vital as a hiring manager to be able to communicate with candidates about why your organisation and opportunity are worth considering.
Training and development
One of the most important strategies that a hiring manager can use to improve retention is to train and develop your talent effectively. Developing your employees provides numerous benefits both employees and for the organisation they work for, including lower costs, increased engagement, higher retention, and new ideas coming into the workplace – all of which will give your company a competitive advantage.
Candidates and employees consider that workplace development is important and welcome the opportunity to learn new skillsets – many actively look for employment which offers them such opportunities. However, there are also a large number of people, including managers themselves, who feel that they are not fulfilling their true potential in the workplace due to a lack of training and development opportunities.
Developing the talent that you do have is vital for talent management and retention. Omni’s range of training programmes offer both training to recruit and to retain. Focused for hiring managers and talent acquisition teams, and then latterly managers and leaders, the training develops the skills and confidence they need to both recruit the best and ensure that they stay.
Get in touch
To help your managers tackle the most important issues when hiring today get in touch.