Topic: Recruiting Strategies

Is It Always About the Money?

 

The labor market is more candidate-driven than ever before. Talented job seekers are more tech-savvy and have more access to various tools that help them compare and contrast competing offers. This, combined with different personal motivators, has shifted the influence power in the recruitment process from employer to employee. As a result, many talent acquisition leaders, hiring managers and recruiters are re-approaching how they win over top talent. And as the power shifts in favor of the job seeker, it begs one important question: Does winning the best talent always boil down to offering more money? Exploring which tactics HR teams are using to address current employment motivators highlights the critical debate of monetary versus non-monetary compensation.

Cash Compensation vs. Intrinsic Benefits

For many companies, deciding where to focus their compensation and benefit programs isn’t so cut and dried. A recent study from Glassdoor indicates that 43% of employees expect a pay raise, and 35% said they would leave a job if they didn’t receive one. On the other hand, the same study reports that 79% of employees would prefer new or additional benefits. Choosing between cash or intrinsic benefits largely boils down to specific business objectives, but some industry approaches highlight impactful strategies for engagement and retention, including tactics like:

Offering Unique Benefits & Non-Monetary Compensation

Offering unique benefits and employee perks on top of monetary compensation might help attract talent. Perks like paid sick days, childcare assistance, and gym membership options all ranked above a flat-out pay raise in the study mentioned above.

Being up front about perks and benefits is equally important to attracting top talent. In the Glassdoor study mentioned above, Rusty Rueff, career and workplace expert says: “Employers should be communicating clearly about non-traditional compensation. Recruiters should take note that touting the benefits and perks offered can help win talent of different demographics, industries and occupations.” Making non-monetary compensation a priority can help recruiters remain relevant and competitive in a job market where roughly 4 out of 5 candidates prefer more robust benefits packages.

Salary Transparency

Delivering transparent salary information can resonate with potential candidates more than higher pay. Another survey from Glassdoor, the Global Salary Expectations Survey, found that 69% of employed adults across Europe and North America wish they knew more about market rates for salary and compensation for their positions and skill sets. Proactively offering detailed total compensation statements projects honesty and transparency to job seekers. Recruiting staff that considers salary transparency a high priority may have better success in separating themselves from the competition.

Incentivizing Loyalty

The current labor market is fickle. A Gallup study shows that 51% of workers are looking to leave their current jobs. A proactive and transparent approach to retention strategies will help give candidates a sense of belonging and incentivize loyalty from the moment they receive an offer. In addition, setting up a career development plan for new hires shows employees the value they add to the organization, encouraging a nurturing and supportive approach to career growth that will incentivize potential candidates.

In such a candidate-driven market, enticing and retaining top talent remains highly competitive. Candidates with changing values and a major influence on the overall recruitment experience will continue to affect how companies think about overall culture and how they market themselves to job seekers. Offering a robust benefits package that includes both monetary and non-monetary compensation, having a transparent approach to salary expectations, and focusing on retention are strategies used by top talent acquisition professionals to stay competitive.

Learn more about the benefits of a proactive approach to total compensation statements with this article.

How To “Think Forward” About Total Compensation

 

As the workforce continues to evolve, it’s important to keep up with what employees value in an employer. Many organizations are re-approaching the way they present total compensation to their workforce. Unfortunately, this tactic is often utilized too late in the process to impact retention and engagement levels. On the flip side, HR teams that “think forward” and leverage total compensation as a proactive solution, and not as a point of reflection at the end of the year or quarter, gain an edge in the fight to recruit, engage and retain top talent.

Adopting a proactive approach towards total compensation will set your business ahead by instilling a culture of transparency and honest communication—key factors in retaining high-value employees and setting them up for the personal success that translates to business success.

How To “Think Forward” About Total Compensation

According to Kimmel and Associates, 91% of workers quit their job after three years. This revolving door of talent leaves companies in a tough spot to build company culture from the ground up. Opening up critical lines of communication with new recruits and top performers about their contribution to the organization and their total value as an employee can be an impactful way for HR to align core company values with their employee base – but it has to happen early in the employee life cycle.

Create a Positive Employee Outlook

Employees want to be empowered and nurtured, not micromanaged. Being proactive about total compensation helps build a company culture around development and progress. Quantitative data that illustrates what an employee is on track to achieve in the coming year can go a long way in driving a positive, healthy and productive outlook for an employee as well as prevent them from feeling like cogs in the wheel.

Prevent Miscommunication

Being upfront and proactive about total compensation also helps organizations prevent critical miscommunication between employees and managers. Total compensation discussions at the beginning of each quarter or year are great ice-breakers and can lead to frequent touch-points between management and staff. It’s important to keep employee expectations parallel to the company’s culture.

The first step in addressing retention and engagement has to be understanding employee expectations and motivators. Armed with this insight, HR teams can align total compensation programs with these values and have a better foundation for engaging employees with honest and supportive dialogue. Here’s a great article highlighting the power of employee benefits as a retention tool to help you start thinking critically about how you can innovate your company’s culture.

The Consumerization of the Career and What It Means for HR

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Job shopping used to be done by flipping through the classified ads, scouring town for “Now Hiring” signs or via good old-fashioned word-of-mouth. Not anymore. Nowadays, job seekers have the power, and employers don’t have the luxury of sitting and waiting for top talent to come in and ask for an application.

HR and talent acquisition are now consumer-driven fields. The job market is as open as it’s ever been, giving top talent the freedom to be as choosey as they wish. They’re like shoppers who won an all-access pass to the world’s largest shopping mall, and talent-hungry companies are the empty department stores waiting to see if the shoppers will flock through their doors.

Similar to the modern day consumer, who is over halfway down the sales funnel before speaking to a sales representative, modern day talent is much more self-sufficient and knowledgeable thanks to rises in wireless connectivity and mobile devices. And like today’s salespeople, employers, HR departments and talent acquisition teams are forced to meet their prospective employees head-on with tools that help drive them to accept an employment offer or commit their future to their company.

Today’s job seekers are also hitting the market with different skills, mindsets, values and motivators than their predecessors. The workforce is younger, more tech savvy and values the intrinsic gains of experiences like traveling, exercising, eating healthy and donating to charity as much as, if not more than, the financial gains of a salary or benefit package.

This younger generation of talent also has evolved expectations for what “work” is. These candidates and employees have grown up being inundated with the stories of how behemoths like Apple and Facebook rose to the top or how niche startups like Uber gained momentum. They’ve seen these companies grow from the ground up, seen their brands become icons in the cultural zeitgeist and consumed their success stories through the TV through movies like “Jobs” and “The Social Network” and shows like “Silicon Valley.” In addition to being inspiring examples of organizational innovation and culture-building, these companies empower talent to approach their career as an opportunity to be creative, make a difference and think outside of the box.

What the Consumerization of HR Means for Employers

The consumerization of the career implores HR teams to approach key processes like recruiting, engagement and retention from a consumer-oriented standpoint. The process of hiring employees has evolved to become a process of selling them on a career, not just a job. Employment notices have taken on the provocative and eye-catching forms of consumer ads, evoking innovation and creativity over the nuts and bolts of a job description. Online platforms like Twitter and LinkedIn are tailor-made for this consumer-oriented approach to recruiting. Talent acquisition teams have ample opportunity to leverage these high-traffic platforms to engage prospective employees and start the application process with the click of a button.

For candidates, finding a job is now as seamless as ordering a pizza or buying new shoes. The workforce’s newfound mobility saddles HR teams with the challenge of expanding talent sourcing efforts while making the process easy and intuitive for prospects. Recruiting platforms like CareerBuilder and Indeed are helping them keep pace with mobility trends, however. Modern apps enable candidates to streamline their job search no matter where they are in the world.

In the office, the wonders of IoT give employers the ability to gain impactful insight into their workforce. Tools like mobile devices, fitness trackers, employee and candidate portals and even VR shed valuable light on employee behaviors, interests and motivators. Gathering this quantitative data helps employers develop a new understanding of the workforce that is key to optimizing HR strategies and tactics going forward.

HR teams can only work with what they’re given. Right now, they’re given a historically large pool of talented candidates, a massive lineup of organizations competing with them for talent, and, perhaps most importantly, a workforce culture that is driven by the consumer. Technology gives employers an obvious opportunity to optimize HR and talent acquisition strategies, but technology alone is simply a tool held in idle hands. Leveraging the consumerization of the career into major human capital gains requires an end-to-end understanding of how technology tools and trends like IoT fit into your larger organizational strategy. The culture surrounding the workforce may have changed but the need for the right candidates certainly hasn’t. It’s time for HR teams to find ways of adapting.

Have ideas on how HR can leverage the consumerization of the career into productivity boosts, recruiting successes, cost savings and more? Tell us, and we’ll make sure the rest of the HR community sees your ideas, too.