The war for talent will trigger unprecedented employee rewards in a bid to attract and retain talent in 2022, according to a new report.
To retain talent, over half (52%) of companies surveyed are considering the unprecedented move of paying their employees above market average pay increases, revealed HR DataHub’s Outlook 2022 survey. Around 9% said they will implement this in the next 12 months; and 14% said they already have this in place.
To attract talent, 17% of companies said they already pay above market pay, and almost half (49%) would consider it. Whilst more than a fifth (21%) said they already pay a sign on bonus and 37% said they would consider bringing one in. Additionally, companies will have to commit to more mental wellbeing benefits, and offer more flexibility, along with hybrid working options to retain top staff.
MONETARY REWARDS NOT ENOUGH
The research also suggests that businesses may start to use retention bonuses as a tactic to retain talent; 28% of businesses said they already have this in place, 4% are implementing it in the next 12 months and 45% said they would consider it. More than a third (34%) said they would also consider above market bonuses.
Companies also appear to recognise that in the ‘war on talent’ monetary reward alone is not enough to attract and retain employees. So 70% of HR professionals said they already implement and promote their flexible working practices in an attempt to attract new talent, a further 16% are looking to implement this in the next 12 months and 16% said they would consider it. In addition, only 7% of those questioned said they would not consider additional wellbeing benefits as part of their plan to attract new talent. 50% said they already use additional wellbeing benefits in their strategy to attract new talent, 14% are implanting this in the next 12 months and nearly a third (31%) would consider it.
Enhancing development appears to be a key strategy businesses are implementing to retain the best talent. 54% said they already have this in place, more than a quarter (28%) plan to implement it in the next 12 months and 20% said they would consider it. Notably, developing leaders was the fourth highest strategic priority for HR teams in 2022.
ESG COMMITMENT VITAL
The research also suggests businesses believe promoting their commitment to environmental, social and governance (ESG) issues is key to attracting talent. Over half (56%) of companies already have this in place, whilst 16% are planning to implement this within 12 months and 24% would consider using it.
“Outlook 2022 has illustrated an astonishing shift in employee strategy amongst the UK’s biggest businesses. Over half of the companies we surveyed said they will be looking to increase their headcount in 2022, which means the talent marketplace is only set to get feistier,” commented David Whitfield, Co-Founder & CEO of HR DataHub. “It is encouraging to see more than half have already shared their commitment to ESG as part of their strategy to attract and retain talent. However, employees have become increasingly cautious about joining and staying in workplaces that pay lip service to ESG efforts. Leaders must ensure these pledges are not empty.”
COMMITMENT TO STAFF WELLBEING
Additionally, companies will commit to more mental wellbeing benefits, revealed the survey. Covid-19 appears to have triggered a rise in the mental wellbeing benefits companies offer to their employees. The research shows that as a direct result of Covid-19, 25% of companies have increased flexibility for their employees by offering additional days off for Covid support, such as home schooling or time to care for others, 20% now offer mental health training and 18% said they have put mental health first aiders on the ground in their workplaces.
Overall, the research shows a significant shift in raising awareness around mental health. 19% have introduced awareness raising activities and 20% have enhanced their current offering. Despite the discussion around four day working weeks appearing consistently, the survey results show little movement towards adopting them. Just under 5% if companies said they had introduced it after Covid-19.
HYBRID WORK MODELS HERE TO STAY
The research also suggests that Covid-19 has triggered an extreme shift towards implementing long-term hybrid working models. Only 2% of companies said their employees must always work from the office, in 2022, down from 76% who expected the same in 2019.
In 2019, only 5% of companies had a remote and office-based combination, but in 2022, 40% of companies said they will be implementing this approach. None of the companies questioned said they will have a completely remote approach to working, which suggests, on the whole, companies recognise the value of having a physical workplace. Although 2022 is likely to see companies offer unprecedented employee rewards, many also revealed a shockingly low commitment to D&I reporting. Click here to read more.
Over 60% of jobseekers rank wellbeing support as a ‘top priority’ when searching for new employment, confirms a new study. Click here to read more.
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