Employers need creative moves as workers vote with their feet

Shane McLave, director at Excel Recruitment, advises employers to engage with hybrid work models and more manageable workloads to retain valued staff members.

Creative moves around hybrid work and better-managed workloads will help employers to retain talent, says Shane McLave, director at Excel Recruitment.

Mr McLave was speaking following the publication of the Excel Recruitment 2022 Salary Guide, in which more than 56% of employers said that they will hire this year, while at least 52% have signalled that they will deliver pay rises to their staff in the coming months.

“It differs from sector to sector, of course, but the one common thing to emerge from the pandemic is that most people want a better balance between work and home life,” he said.

“If you look at hospitality, employers are finding it very difficult to recruit people with two or three years’ experience. We’ve lost a generation of hospitality experience.

“The top end hasn’t seen huge salary increases, but a chef de partie who was on a €28,000 salary prior to Covid-19 is now earning €38,000.”

 Meanwhile, the Excel Recruitment Employee-Employer Feedback Survey shows that workers are more ready to move than they were in the past. Some 38% of workers have plans to move jobs this year, while a further 36% said they were unsure as yet as to whether they would change roles.

Salaries are increasing across the board Excel Recruitment Employee-Employer Feedback Survey, which highlights the growing importance of non-salary-related work attributes when attracting and retaining employees.

“It’s not all about money for workers,” said Shane McLave. “People have gotten a taste for working from home. For many, if their employer won’t offer the hybrid model the workers want, they’ll consider changing.

“For others, employers could look at lightening the workload. For example, if someone is doing 12 catering delivery calls a day, maybe nine deliveries would be a more attractive option.

“People want a better quality of life. You have to put some thought into offering the right perks. It’s not enough to just host a Christmas party.

“Throughout 2021, Irish businesses have continued to adapt by deploying innovative solutions in product and service delivery, and in managing large teams working from home.

“Thankfully, many have emerged victorious from the pandemic but, as with any business, new challenges have emerged – namely, skills and staffing shortages.” The pandemic caused a shift in people’s priorities heralding the emergence of the ‘Great Resignation’ or the ‘Great Re-evaluation’.

The Excel surveys found that a higher salary was the main reason for moving jobs for just four in 10 employees – with a similar number indicating a move for greater flexibility.

Some 12% were motivated to change jobs due to a preference for career progression and 8% for better benefits.

“So, while salary is always going to be a key motivator, it does take its place among other considerations such as training and development opportunities, flexible working conditions, company culture, and tangible employee benefits like pension schemes and health insurance,” said Mr McLave. “These are becoming just as important, alongside agile working conditions.” 

The Excel Recruitment Employee-Employer Feedback Survey looked at workers’ plans in terms of job change in 2022, as well as preferences around work structure and benefits. Employers too were asked about pay-related and recruitment plans for 2022.

Mr McLave added: “What jumps out from the employee survey is that just 26% can categorically say they don’t plan to change jobs this year, which is a testament to the degree of fluidity within the employment market at the moment.

“The overwhelming majority favour a hybrid approach to work practices (70%), with just 15%, either way, preferring a strictly remote-based, or full-time, office-based approach. This ties in with our client’s experience where they are finding that an agile workplace is an excellent drawcard for attracting new talent.” 

On the employer side, a minority say they will definitely not be hiring (14%), while 13% said that there definitely won’t be any pay increases for their workforce this year.

Of the pay increases already granted and/or promised, 42% were performance-related, 24% were due to promotion, and 22% because of a counter offer.

“There is no question that Covid has brought many challenges, but it has also widened the talent pool due to the flexibility around scheduling remote interviews and the increased ability to work from home,” he said.

“Employers say that attracting the right talent with the right skills will be the biggest challenge in 2022. With economic growth forecast at 7% for 2022, the real question is will companies be able to source and recruit the talent that they need to fill these roles? In this current climate, employers need to set their employer brand apart from the competition in the same way that they differentiate their products and services.”