Over the past few years, the unemployment rate has been higher than ever before. Employers are anxiously seeking new talent, with an average of 400,000 jobs being added to the market monthly. In June of 2022, the employment rate was still down 800,000 jobs from where it was pre-pandemic, in February of 2020. While employers are still desperate to retain talent and to fill positions that remain empty, hyperinflation is making it difficult to provide employees with paychecks substantial enough to keep up with the rising cost of living.
In a time of economic crisis, where it is impossible for wages to match inflation, how are employers expected to attract and retain talent? The answer may be simpler than you think! Employees desire compensation that consists of more than just pay. On a scale from 1-10, the majority of job candidates ranked benefits packages between 9 and 10 on importance. If an employer is unable to offer a competitive wage, providing a desirable benefits package can appeal to new talent.
Due to various economic factors, it is impossible for organizations to continuously increase wages as inflation progresses. As a result, it is more important now than ever to provide compensation in other ways that will benefit both the individual and the company.
Some benefits job candidates are looking for include:
- Remote Working Opportunities: As the cost of transportation continues to rise it becomes more difficult for employees to afford the commute to work 5 days a week.
- Health Benefits: Health Insurance provides many benefits for employees no matter their age or status. Good insurance provides peace of mind, has proven to result in lower death rates and better health outcomes, as well as improved productivity.
- Paid Time Off (PTO): This allows employees to sustain a healthy work-personal life balance. Something as simple as PTO can increase retention rates and prevent burnout.
Providing desirable benefits is just the start to attracting and retaining talent. In recent years, statistics have shown that employee engagement is moving in a downward trend. Workers are feeling a disconnect with their organizations, thus making it difficult for companies to retain talent. In the present economy, people are feeling stressed and want to be able to trust and feel supported by their employer.
It is becoming increasingly important, especially with the impending economic decline, that organizations provide security, opportunity, pay equity and transparency along with other desirable benefits. This allows employers to attract and retain talent despite the obstacles of a troubled economy.
To learn more about how to prepare your compensation, market pricing and HR strategies and stay ahead of inflation and recession, register now to view the webinar with Decusoft, BetterComp & Korn Ferry!