In the current economic climate, leaders are finding it increasingly difficult to persuade top talent into joining their organisations. The current recruitment efforts of many companies are not successfully attracting the right candidates and positioning their firm as a leader in the new world of work. Consequently, increasing the risk of losing the talent war to your competitors.
Although job loss has led to greater talent pools in some sectors, employers are not only struggling to fill their open positions, but they are also at risk of losing their existing employees if they do not act quickly.
Employers can entice candidates to join them and stay for the long term by understanding what employees care about, messaging around benefits, company culture, and work environment.
Based on Empresaria's latest report, here's what companies need to consider for success in 2023:
The reasons behind quiet quitting
Many people have heard about 'quiet quitting', a phenomenon that first emerged on the social media platform, TikTok. It is argued that employees have lost their enthusiasm and are content coasting through their careers. But why is this concept so popular?
Since the pandemic, many employees have become burnt out and have started to only do what is required of them. Due to the shift toward a remote work culture, many employees have been working longer hours, taking lunch breaks at their computers, and experiencing a lack of boundaries between their work and personal lives. In reality, many employees are expressing their opposition to burnout, rather than quitting quietly.
There is no secret motive behind the so-called 'quiet quitters'. They simply want a better work-life balance. In order for employers to improve their employee relations, they must pay close attention to all employees' needs, as employees simply want to have their needs addressed. To achieve this, it is necessary to have open and transparent discussions with employees and to create action plans.
A rise in competitive salary expectations
It cannot be denied that remuneration has become more important than ever before. In many countries around the world, workers are experiencing financial hardship because of rising bills and inflation, which have reduced their spending power. According to Empresaria's research, 60% of employees across different sectors and demographics are not satisfied with their current salaries - an indication of the severity of the cost-of-living crisis. The majority of employees, 87%, anticipate salary increases over the next 12 months when asked about their expectations for 2023. Living expenses have increased significantly over the past year, outpacing wage growth. As a result, workers are unable to keep up with the rising costs and are looking for ways to increase their salaries to make ends meet.
EVPs must hit the right notes
Employers must focus on their employer value proposition (EVP) in order to attract top talent in 2023. In addition to salary and flexibility (work-life balance), there are other areas to improve, beginning with the hiring process and continuing through onboarding. A smooth and seamless candidate experience can often make or break a candidate's desire to apply and can have a significant impact on drop-off rates. HR and talent acquisition teams should devote time to marketing their company's culture and benefits.
The challenge is then to retain these top performers. It is essential to invest in the development and training of employees, in addition to offering competitive monetary rewards. People also value being supported and encouraged by leaders and managers who truly care for and value their contributions. This is essential in creating an environment where employees feel engaged and committed to staying.
In order to succeed, employers must invest in L&D
The Empresaria report revealed that 60% of employees underwent training and development within the past year. This is an important retention tactic as employees have historically complained about a lack of training. It’s always been a sticking point and one of the most important factors in improving talent attraction and retention.
To address the ongoing skill shortage issues employers face, upskilling should be a primary focus for employers. Investing in training can have a significant impact, particularly in today's economic climate.
A purpose-driven approach to DEI and ESG is essential
While DEI efforts are proven to increase attraction and retention as well as deliver improved performance, organisations do not appear to be doing enough to implement them. Empresaria's research shows that DEI is a journey, and while results don't happen overnight, companies must communicate their DEI strategy while ensuring equal opportunities for everyone. Every individual must have an inclusive work environment to be able to bring their authentic and best selves to the workplace.
Provide workers with the option of choosing their work environment
Today, working from home (WFH) schedule for part of the week is quite common. Businesses that enforce a full-time office schedule run the risk of losing their existing talent and losing out on talent attraction. Many people want a better work-life balance and don't want to waste valuable time traveling to and from work. Others may have family commitments that make working from the office more challenging.
For some, WFH will be the more challenging environment that won’t be practical. It may be that their set-up at home isn’t sufficient or they have connectivity issues and poor PC equipment. A reminder that employees need the right tools to work effectively from home. Employers must therefore ensure that their offices are fit for purpose so that when their staff do come in, they can work in the most effective way that suits their style.
Every individual has different needs and expectations in life, while some may want to work in the office or split their time between the office and home, others may want to work entirely in the office. Therefore, you need to let your employees decide how they want to work.
Learn more by downloading the full ‘’ Tackling the great talent paradox: A roadmap for hiring and retention success in 2023’’ report: https://www.empresaria.com/tackling-the-great-talent-paradox