‘Increasing pay is not enough to address skills shortages’

A new report from the CIPD and Omni shows that employers have found that advertising roles that are open to flexible working has been among their most effective recruitment methods in the last few months.

Person Jumping From One Job To Another

Person Jumping From One Job To Another With Slightly Higher Pay

Using pay to attract talent simply isn’t enough to tackle ongoing skills shortages, according to new research, which highlights the importance of offering flexible working.

The annual survey of over 1,000 HR professionals by the Chartered Institute of Personnel and Deveopment [CIPD] and Omni finds that, while an increasing number of organisations (54%) are inflating pay to retain talent, this approach is not sustainable for most employers in the face of rising costs.

It argues that to tackle the skills shortage, organisations need to highlight other components of good working practices when recruiting, such as offering flexible working and promoting career development opportunities. For instance, the latest Resourcing and Talent Planning survey shows that 68% of employers that offer hybrid/ remote working say it has allowed their organisation to attract and retain more talent.

It found that:

– 30% of employers who had recruited in the past 12 months say that advertising roles as ‘open to flexible working’ is amongst their most effective recruitment methods
– 54% of organisations who have had recruitment difficulties are offering greater work flexibility to address recruitment difficulties

– 49% of organisations say their use of hybrid/remote working has greatly or somewhat increased, and almost a quarter expect this to increase further in the next 12 months.

Overall, the CIPD says the report findings show that the world of work has changed forever, and employees increasingly want to work for businesses that provide career development opportunities, have good organisational values and offer flexible working.

The research also notes that, even in the challenging economic context, there are steps businesses can take to entice employees to their organisation, such as offering greater flexible working and career development and emphasising the job security their organisation can provide in difficult times.

Louise Shaw, Managing Director, Omni RMS said: “Candidates want more than just good pay and are seeking meaningful jobs that are culturally and personally rewarding. Less forward-thinking organisations find themselves at the mercy of a labour market, the likes of which we haven’t seen before, with competition for skills creating retention pressures that recruitment cannot contend with. The resulting fight for talent is costly and not sustainable, hence organisations need to accelerate their plans towards ‘resourcing maturity’. Businesses that fail to think strategically run the risk of losing out in the competition for talent.”



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