Sustaining a dynamic workforce is an increasingly complex challenge in the war for talent. At Alumni we are witnessing more attractive opportunities in the market than ever before and increasingly fickle candidates that are abandoning their recruitment journey at a late stage, lured by the glitter of alternatives. What does it take to be a destination employer and keep valuable expertise when you find it in today’s changed market?

Talent has itchy feet

Forty per cent of employees in a recent survey by McKinsey[1], said they are at least somewhat likely to quit in the next three to six months. Eighteen per cent of the respondents said their intentions range from likely to almost certain. These findings held across all five countries surveyed (Australia, Canada, Singapore, the United Kingdom, and the United States) and were broadly consistent across industries.

We see compensation packages running at unprecedented levels, but attrition remains high as the ‘Great Resignation’ continues to have an impact on organisations across the globe. Clearly, throwing money at the situation is only having a limited effect. So, what is at the heart of people’s reasons for leaving and how can businesses mitigate against it?

Work life balance

In short, the pandemic has thrown a sharp spotlight on work-life balance, it has made us all question what is important in life and given us a glimpse of what’s possible when life isn’t centred around commuting to an office 5 days a week. For instance, many UK workers discovered that they could survive on only 80 per cent of their salaries on government furlough and perhaps the one-day deficit out of five this represents from the working week could be better spent doing leisure pursuits.

This view is supported by research from the Harvard Business Review in partnership with FutureForum who recently reported that in almost every country, employees who say that they are unsatisfied with their current level of flexibility—both in where and when they work—are now three times as likely to say they will “definitely” look for a new job in the coming year, compared to those who report satisfaction with their work flexibility.

“Employees who say that they are unsatisfied with their current level of flexibility are three times as likely to say they will ‘definitely’ look for a new job in the coming year, compared to those who report satisfaction with their work flexibility.”

With hybrid working here to stay, many organisations have added benefits packages directly aimed at supporting their employees to work from home. They are reimbursing workers for office supplies, electronic devices, and internet costs. This goes a long way to say that not only is the employer committed to your flexible working but is willing to go the extra mile to help you achieve it.

Netflix have taken an approach to work-life balance to the extreme and placed themselves firmly among the household-name companies with the best employee benefits. At Netflix’s California headquarters, job perks include the ultimate take on flexible hours and a fair work-life balance, vacation days and work hours aren’t tracked. The company only measures what people get done; if employees do their work, it doesn’t matter when or for how long they’re in the office. This is true flexibility but also an approach that demonstrates trust and faith in its employees.

Holistic investment

In addition, the pandemic gave employees a unique opportunity to witness compassion levels first-hand from their bosses. Did they feel cared about during the Covid-19 crisis? Supported? Still part of a whole even when isolated from the business premises? Did their team bonds and work goals remain strong when remote working – or did they become disconnected and diffuse? Employees have had ample time to look at the possible alternatives available both within their own industries and careers, and in new ones, that perhaps suit their newfound purpose in life better.

Destination employers are reimagining their total reward framework and adopting a more humanistic and holistic approach to employee wellbeing - one that inspires and supports better work. They are also increasing their use of compassionate leadership to ensure that their workforce feels valued in more than monetary ways. We also see increasing investments into leadership development and upcoming talent.

Understanding what people you need for future success will help you more proactively structure and adapt compensation packages to attract those specific individuals. Companies are also increasingly taking the perspective of the employee and adapting benefits to attract individual candidates. For instance, seeing upskilling more clearly as a convincing business case, part of a personal development plan, but also one that has great potential to benefit the entire organisation when done well. For example, Starbucks supports its employees to earn a bachelor's degree through Arizona State University’s online program with full tuition reimbursement. Just as in any relationship, commitment between employer and employee works best when it is two-way.

Striving for common purpose

In all candidates but particularly at C-Suite level, we are also seeing an emphasis on the importance of a shared cultural purpose. Executives want to both work towards goals that fit their own sense of ideals and know that their organisation is heading in a similar direction. This can be as simple as wanting to be treated holistically by an employer and not just as a workhorse, right through to having the same intentions towards the planet and sustainability. Organisations that show they are committed to goals that extend beyond the bottom-line are more likely to not only keep their existing stars but attract new ones into their realm.

It is all down to leadership

Focusing only on compensation or only on cultural factors won’t stem the tide of attrition - business leaders must pay constant attention to both. Creating a culture that creates a real, values-based connection with its employees is key to engagement and retention. Leadership that really connects, values, communicates and cares about the people that work there is key.

“It’s time to take a hard look at what competence you need for future success. Understanding more about the team you have in place today and what drives those individuals will help you focus on how to support and develop the skills you need to fill in the gaps. Sometimes it’s about a strategic new hire but often it’s about encouraging existing potential and reskilling to some extent.”

— Anne Lançon, Alumni

Developing leaders that are capable of responding to an increasingly fickle and individualised talent pool will create clarity and credibility that build the trust, essential for both attracting and keeping expertise.

**Anne Lançon**

Senior Executive Search Researcher
E-mail

References

[1] https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/great-attrition-or-great-attraction-the-choice-is-yours

Alumni

Effective leaders are one of the most important assets within an organisation and recognising and realising their potential will not only deliver a competitive advantage to aid your business strategy but also improve leadership attraction and retention.

Alumni has over 30 years’ experience of executive search, helping forward-thinking companies identify and attract their leaders for tomorrow. We also have a complementary portfolio of services offering a fully rounded perspective to your talent management- and leadership development needs.

It takes more than money