If you've heard or used the phrase "war for talent," chances are you didn't know it was first coined in 1997 by Steven Hankin of McKinsey & Company.
The war for talent refers to the increasingly competitive world for attracting and maintaining top talent.
Due to COVID-19, the war for talent reached a new tipping point in the last year.
Businesses have been forced to cut workers at a rapid rate as a result of the covid pandemic. Many of them have revised the traditional hiring practices. Employee furloughs were considered the best choice by some.
A good example of this is the recent closure of many restaurants, hotels, and pubs last year, as well as the fact that a large number of people are leaving the industry.
The majority of them are unwilling to return to their previous positions.
Job search engine Joblist polled nearly 13,000 job seekers about whether they would be interested in a hospitality job again. The survey said, “Over 50% of former hospitality workers who are moving say that no pay increases or incentives would make them return to their old restaurant, bar, or hotel job.” They would prefer to work in a new workplace setting with better perks, flexibility, and compassion.
As a result, the hospitality industry is currently experiencing a labor shortage.
This issue has spread far beyond the hospitality sector and has started affecting manufacturing, construction, and a variety of other industries. According to a study, a record 44 percent of small-business owners said they couldn't fill job openings.
Throughout the world, people expected the world to soon face "a great war for talent." And, it appears to have arrived.
5 Actionable Tips To Win The War For Talent
Economies are competing for attracting skilled talents, particularly in North America, Western Europe, and Northeast Asia. They've realized they have too many debts, an aging and retiring population, and a labor shortage.
And, as countries get closer to being fully vaccinated, they've begun to recruit global talent by emphasizing a positive workplace environment.
Another interesting trend in today's labor market is that you might be able to get the job you applied for a few years ago. It is because employers are increasingly contacting former applicants. They now use a variety of third-party job board databases in addition to their own talent network database.
As a result of the labor shortage, labor costs are gradually rising. All employers, on the other hand, want to retain their workforce and attract more qualified candidates.
Those who cannot afford to increase labor costs might offer their employees shorter working hours and flexible schedules. They should also look into providing better benefits if doing so does not jeopardize their positive cash flow.
Given the increasing mobility of the global workforce, more organizations are looking for the best talents from around the world. But to draw talent from other countries with a labor surplus, there must be better infrastructure, overall safety, and a work-life balance.
In short, hiring managers will have to spread the red carpet for job seekers and focus on fulfilling their expectations. They must now provide a "renewed package" to their employees. It should include monetary compensation and incentives (bonuses or rewards for exceptional performance). They must also not forget about benefits with top options such as health insurance and paid vacations.
Here are some ideas for rewards and benefits that companies should consider to attract people with a new range of needs and goals today.
1. Provide health insurance
Before COVID-19, employee experiences were centered on birthday parties, team outings, and free lunch, among other things. But it is now more important than ever to ensure that employee experience investments are made in the right areas.
During this health crisis, employees want support regarding their financial, physical, and psychological well-being. So, companies are using some well-articulated employee health plans that also act as a key differentiator to attract and retain top talent.
Health Insurance plans for employees are a terrific way to show that you care about them. It pays a certain sum to cover an employee's medical expenses.
Many employers are now offering assistance for COVID-19-related expenses that exceed insurance coverage, which is very important to employees.
2. Make a balance of insurance and wellness benefits
Apart from receiving a singular health insurance benefit, employees want to work for companies that care deeply about their health, well-being, and safety.
As a result, in this decade, providing an all-inclusive health plan has quickly become a powerful retention tool.
For example, companies now help employees consult online health experts, order medicines, or book lab tests easily.
Today's businesses are also increasingly turning to corporate wellness platforms like Vantage Fit, which allow them to host a variety of fitness contests and challenges to encourage healthier lifestyles among their workforce.
As a result of such new developments, employees now have more access to high-quality healthcare. They can focus on their jobs with confidence, knowing that their medical concerns are taken care of.
3. Offer corporate discounts
Who doesn't love discounts on purchases?
With corporate discounts, you can help your employees save money on fashion, technology, athletic activities, and many other things.
These types of benefits are becoming increasingly popular, especially among medium and small businesses. It can also have a great impact on employee satisfaction, engagement, and retention. And it can prove to be a great recruiting tool.
There are numerous good employee discount platforms, such as Vantage Perks, that provide exclusive corporate deals, offers, and discounts that every employee is sure to appreciate.
4. Make use of Digital HR
We know that if employees' expectations are not being met, they may seek new experiences. It is just like a customer who has a negative experience and switches brands. For this, HR needs to learn from successful customer-service stories.
In this aspect, using digital HR to provide a consumer-grade experience for employees is the way to go.
Using Digital HR strategies can start from investing in your corporate communication tools and technology.
HR digitalization can also make the job application process easier for your candidates. And most importantly, it calls for an excellent employee onboarding experience.
5. Look beyond the 9-5 hours.
COVID-19 has ushered in a sea change in working patterns, mostly for the better. Employees now don't just hate the 9-5 shift; they are terrified of it. New candidates are looking for a flexible work culture as opposed to the typical 9-5 work schedule.
Thus, an engaging workspace is no longer limited to a working desk. The 9-to-5 workweek is dead, and the employee experience is more than providing the office cafeteria and free snacks.
As employers, it is our responsibility to enable our employees to complete tasks on their own time and in the manner that is most convenient for them. We should do our best to provide flexible choices to help them be even more productive.
Organizations are facing multiple challenges at the same time.
When new hires receive massive pay raises, the ability to work from anywhere, and great perks, existing employees compare their experience to that of the new recruits.
The disparity demotivates them. It causes ripple effects throughout organizations, making workforce management difficult for employers. Some are even losing their best employees to the market.
No wonder organizations are concerned and believe this is the most significant challenge they face in their term!
The keys to getting out of this situation include gaining employee loyalty, providing proper rewards, and leveraging their talent to flourish.