Labour and Tech Skills Shortages... Your Employee Retention Checklist
11 July 2024
The UK is facing a labour and tech skills gap, impacting various sectors. Accommodation and food services, Human health and social work, and Manufacturing are most notably affected by labour shortages. In the UK cyber security skills sector, UK businesses have been struggling to recruit the skills they need – a trend that’s been consistent since 2022. When the right skills are hard to come by, retaining those you have is business critical. Read on to discover your employee retention checklist.
What makes people stay with a business?
A competitive salary probably springs to mind, and it’s fair to say that money has always talked. Still, when it comes to creating an Employee Value Proposition that nurtures loyal employees, you must dig a little deeper into the wants and needs of your people.
Before we move on to our Employee Retention Checklist, we recommend pausing to assess your current situation.
Our Retention Risk Assessment can calculate your employee turnover risk in just three quick questions.
Answer the questions, review the results, and then return to this blog to discover the tangible steps you can take to boost employee retention in your business.
Your Employee Retention Checklist
This Employee Retention Checklist isn’t set in stone. Employee demands and priorities change alongside economic situations - the good and bad - and as new generations enter the workforce, your Employee Value Proposition must evolve.
1. Flexibility
Flexibility has become a must-have - a non-negotiable element of your EVP. In 2023, the number of employees with flexible working arrangements rose to 60%, compared with 51% in a similar survey in 2022 (CIPD).
Flexible working looks different for each employee, and it’s now a day-one right for an employee to have their flexible working request reviewed.
Why is flexibility included in our Employee Retention Checklist?
Simple. 54% of workers worldwide would be willing to leave their current role if their employer wasn’t flexible towards their working pattern and location.
2. Employee Benefits
Did you take our Retention Risk Assessment?
If so, you’ll understand the role employee benefits play in enhancing your employee retention rates.
Discover ‘Everything You Need to Know about Employee Benefits’ in our comprehensive blog.
Employee benefits do more than bump up your pay package, although our Employee Discounts Platform and cashback-earning Pluxee Card, when used to their full potential, can be more effective than a pay rise!
More sustainable for your business, too…
Employee benefits enhance your employees' financial, mental, and physical wellbeing, opening up a world of opportunities to do more of what matters.
3. Employee Wellbeing
The belief that employee wellbeing is an employer's responsibility only strengthens. With HR professionals working hard to keep up with evolving trends, authenticity is essential to setting yourself apart from your competitors.
Employees recognise ‘wellbeing washing’, and adopting this approach won’t improve your employee retention rates. Effective employee wellbeing initiatives can create healthier, happier, and more engaged employees, yielding a return through increased productivity and employee retention.
Discover more on getting workplace wellbeing right.
4. Reward and Recognition
What happens when employees feel unappreciated? Well, 66% of them would quit.
Improving employee retention is essential if your business is feeling the strain of labour and skills shortages. Your reward and recognition strategy plays a crucial role in this.
Never underestimate the power of a thank you and how much showing your appreciation can boost morale, loyalty, and employee engagement.
Did you know that companies with high employee engagement deliver 147% more earnings than businesses with low employee engagement?
5. Workplace Culture
30% of UK workers quit their jobs due to a poor workplace culture (LinkedIn).
Your workplace culture is an essential element in your Employee Retention Checklist. Culture encompasses a host of factors, from the look and feel of the office to the tone and personality of the business, a business’s commitment to its people, its values, and everything in between.
Have you heard of ‘conscious quitting’?
It’s when employees leave their jobs in pursuit of an organisation that is more aligned with their values and can demonstrate their CSR credentials. Your Social Value, DE&I, and CSR policies are under scrutiny by your people, making them another critical factor in the success of your employee retention strategy.
Discover how to put sustainability at the heart of your employee retention and benefits strategy.
6. Management and People Leaders
28% of those who left resigned due to a poor culture said a negative relationship with their manager was a contributing factor (LinkedIn).
Accidental managers are on the rise - competent and capable employees who’ve progressed to managerial roles without receiving additional people training. Investing in your managers and helping them understand the importance of empathy and effective communication is essential to increasing employee retention.
Cutting back on manager training will cost your business more than it will save.
Need help attracting talented managers? Here are seven top tips!
7. Opportunities to Progress
Having a clear career development plan and progression path improves employee retention. Employees must be able to visualise their future with you to see themselves staying in the long term.
Gen Z thinks two years is an appropriate amount of time to stay with a business before moving on. Presenting a clear career path plan they can expect to follow and providing learning and development opportunities along the way will enhance employee retention.
8. Review and Learn
Everything evolves, so it’s essential to regularly review all steps implemented as part of your employee retention strategy.
No matter what you put in place, some employees will move on. Make the most of your exit interviews to understand what people liked about working for you and what they felt could be better.
Be brave and bold, and don’t take offence to what you may hear. It’s valuable feedback from which you can learn.
FAQs:
Why is employee retention so important? Even if labour or skills gaps and shortages do not impact you, high employee turnover damages your business - financially and reputationally.
How much should I spend on employee benefits to improve retention? It’s not about spending the most on employee benefits. It’s about embedding the products and solutions that will most positively benefit your people. Our employee engagement consultants here at Pluxee UK can help create a cost-effective and, in some cases, cost-neutral strategy.
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