Employers are still experiencing mass resignations, even after the Great Resignation trend was sparked by high levels of resignations following the pandemic.
Professionals are looking for employers who offer flexible work arrangements, extensive savings, and health benefits, as well as other gifts. Existing workers are also more likely to switch jobs for one that is more fulfilling and suits their lifestyle.
Employers are finding it difficult to recruit and retain talented employees as professionals raise their standards. We will explore why today’s hiring and retention challenges are so difficult and share the best practices to build a team of long-term, engaged employees.
The hiring and retention of employees is more difficult than ever
SCORE Employee Engagement Report states that small businesses have difficulty in hiring and retaining employees. They also face problems when trying to engage and keep them. The report reveals some interesting findings.
Among small business owners, 60.7 percent cite hiring the right talent as their top challenge.
Thirty-three percent of respondents cite the retention and motivation of employees as an issue that is concerning.
84.3 percent of small businesses report difficulties in hiring new employees.
45.8 percent of employers report having difficulty keeping their existing employees.
In addition, the lack of engagement at work contributes to retention issues: 62 percent say that they struggle to retain employees and keep them productive.
The employees are the heart of any company, but especially small businesses. They’ll struggle to survive without the right talent. High turnover may also lead to desperate and expensive recruitment and training to fill talent gaps.
Bad hiring can cost you money, productivity, and time. According to CareerBuilder, the average cost of hiring a bad employee is over $18,700.
Why companies are having difficulty hiring and retaining staff
Employers face a number of challenges when they are trying to recruit, retain, and motivate excellent team members.
Employees feel underpaid and overworked. The SCORE report found that 59.3 percent cited wage as the main reason for disengagement. Overworked employees will not do their best work if they feel underpaid. That’s likely why, according to If a candidate thinks that a job offer is unfairly compensated, they will keep searching.
The healthcare benefits offered by small businesses are inadequate. Along with low wages, 39.1 percent of employers cite this as a factor in their hiring and retention problems. In today’s economic climate, health insurance can be a costly expense. A business that does not include health insurance in its employee benefit plan will receive fewer job applications.
Employee Burnout Affects Engagement. According to SCORE, 38.5 percent of small business owners have unmotivated employees. This statistic is in line with the increasing rates of worker burnout. Employees cannot perform their best when they feel underpaid, overworked, and unappreciated. Work stress caused by micromanagement and a lack of opportunities for career advancement may also cause loyal employees to leave their jobs or look elsewhere.
The problem is that employers can’t find qualified workers. Finding people with the skills that are in demand is another hiring challenge. SCORE found that 23.4 percent of small-business owners have trouble finding qualified workers. This can be due to a skill gap or lack of training and experience.
Side hustles may affect employee engagement. 29.7 percent say that they hire workers who have other jobs or work on projects that interfere with their primary job.
How to recruit and retain employees in your business
Today’s employees are often unhappy and disengaged from their work. According to SCORE, disengaged workers have a negative impact on many business areas, including productivity, workloads, team morale, and business growth. Experts shared their tips on retaining and attracting employees.
Offer a generous plan of compensation
According to a SCORE report, 59.1 percent of small businesses have raised employee salaries in order to attract and retain employees.
Andrew Fennell – former director and recruiter at StandOut CV – explained that “retaining talents will often go together with wages.” Companies need to pay a fair wage to the market and reflect regularly on whether they are still competitive. Money will always be the motivator for employees, and it is the easiest but most common way to retain talent.
Many small businesses do not have the funds to pay competitive salaries. Other ways to reward your employees include health insurance, retirement plans, and referral programs.
Provide career development opportunities
Small business owners (41.3 percent according to SCORE) are now offering professional development to their employees to make them feel appreciated and more engaged.
Jacob Hinson is the founder of eLocker. He advised that, in terms of career advancement, providing opportunities for skill development, training, and clear paths for advancement could increase employee loyalty. Employees will stay longer with a company if they feel like they have a career ahead of them and can envision a bright future.
To encourage your employees to grow their careers with your company, link professional development paths with promotions.
Work flexible hours
According to SCORE, 36.8 percent of small business owners now offer more flexible work policies in order to appeal to professionals who value freedom and a that flexible schedules afford. SCORE reports that 36.8% of small businesses now offer flexible policies in order to attract professionals who appreciate the freedom and balance between work and life flexible schedules provide. In order to highlight flexibility as a work-life balance incentive, you can include it in your employee description.
Fennell said that potential employees are looking for companies that care about the work-life balance, prevent overworking, and have the latest technology for their employees. Make it visible, and potential recruits will be able to quickly understand your company to determine if it is a good match.
Create a positive culture in your company
Employees should enjoy their work and not dislike it. SCORE discovered that 46.2 percent of small businesses have a more appealing company culture in order to attract and retain employees. A positive company culture creates an inclusive atmosphere that helps eliminate hiring prejudices and makes every employee feel like a part of the team.
Hinson explained, “For many professionals, the non-monetary benefits are just as important, if they’re not more so, than the paycheque.” Engage employees by asking for their feedback and showing them appreciation. This will make them feel appreciated and encourage a sense of ownership and connection with the company.