February 2007
Recruiting and retaining staff – Do your sums add up?
With Scottish unemployment figures at their lowest ever since records began
and the employment rate higher than the UK average it seems that businesses are riding high.
But with a simultaneous rise in the average number of job vacancies, employers are ‘feeling the pinch’ in terms of finding staff. Competition for workers is fierce, and businesses are not only battling to find staff, but to hold on to them as well. Combating this is not just as simple as bumping up salary offers, as Steve McCulloch, Business Manager at Thorpe Molloy Recruitment, points out.
“Obviously, the level of salary you are offering is very important, but it is not the ‘be all and end all’. Studies show that whilst money is a motivator it is only one consideration for a candidate looking to make a career move. Companies will need to look at a ‘total reward’ package in order to attract fresh talent – so if you are missing out on staff, chances are that unless you are well below the expected salary range, there could be other factors you are missing.”
The days when an annual pay rise, a Christmas bonus and the promise of a gold watch on retirement were enough to attract employees and engender their loyalty to the firm are long gone, warns Steve. “Companies have to become increasingly shrewd with staff remuneration policies, or risk missing out altogether. Work is not just a way of paying the bills – for many people it’s about the experiences and opportunities afforded to them.”
At first sight, it may seem like a high risk strategy to offer a joining bonus, but they can be a very persuasive tool, especially to those who are risking annual bonuses or who need to pay back their professional fees. Another consideration for companies is to look at offering relocation support, not just financially but all round support to include housing, education and such. In many instances this will widen the pool of candidates available to them, which is critical in today’s candidate driven marketplace.
The chance to gain qualifications and advance their knowledge can be a powerful influencer, notes Steve. “You could offer time off and/or support to undergo further education. How about establishing a ‘training budget’ whereby each person has a certain amount of time and money which they can allocate to training opportunities?”
Flexible or remote-working brings benefits to both staff and businesses alike -Workers can fit work round the pressures of life, and companies can make huge savings on overheads.
Making work a better place to spend time is often overlooked, points out Steve. “It can be as simple as some basic redecoration and renovation, or as complex as having purpose-built office space. A number of companies in Aberdeen have been investing in their premises and have looked at providing attractive leisure facilities on site. These include cafeterias and leisure centres. Work shouldn’t be a place you dread going!”
“Don’t underestimate the value of a good pension scheme, especially a non-contributory one. Even a contributory plan has ‘hidden’ financial benefits for staff, because the employer can match the contributions, effectively doubling its worth.”
For graduate recruitment another option is an interest-free loan to help pay off overdrafts or tuition fees. And it’s not just students who appreciate these sorts of benefits - interest-free loans can be attractive to experienced workers too. “They could be used for anything – from buying a car, paying off a little of the mortgage, or even a new kitchen. Best of all, is that they don’t actually cost the company that much, but can make a massive difference to the worker.”
You may find that it also pays to look at different (and offbeat) avenues when it comes to providing additional benefits. The permutations are only limited by imagination. “For bigger companies,” says Steve, “offering a concierge service is a tremendous idea. Whether it’s food shopping, dry-cleaning, even queuing for concert tickets, this sort of assistance means your staff can focus on working without the worry.”
Don’t forget that your staff are not just individuals either. “By extending offers to the employee’s family where appropriate, the value of the benefit to the worker can increase dramatically,” suggests Steve.
“With so many ideas and options however, it is not easy to know what to offer. Why not just ask your employees what they would like – they will appreciate the chance to choose their own perks.”
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