'Providing continuous upskilling or reskilling opportunities can reap dividends': report
A recent study by global staffing firm ManpowerGroup found that 77% of employers worldwide are facing difficulties in filling job vacancies. And there are several reasons why employers are finding it challenging.
The Australian HR Institute’s Australian Work Outlook for Q2 2023 report listed some of the main reasons behind the difficulties in recruitment. The top three were a lack of suitable candidates (75%), high remuneration expectations (45%) and too much competition from rival organisations (34%).
And while offering an employee more pay could be an option to solve talent attraction in the short term, it’s rarely sustainable. Instead, employers should consider a total rewards approach to talent attraction and retention.
Total rewards approach
A total rewards approach refers to the whole package and employer offers an employee, according to a report by Humanforce. They cover the financial, career, physical, emotional and social wellbeing of an employee. And the core elements include compensation, benefits, work-life balance, career development and recognition.
“In challenging economic times, employers can focus on building more effective non-financial rewards, where the returns are high due to their relatively low cost and high retention value,” the report said.
The report also references the Michael Page Talent Attraction Index, which shows the factors that influence a candidate’s decision to join a new company in Australia. Leading the charge is salary/compensation, followed by flexibility, office location and career progression/promotion.
“The premise of this index is that a company has a greater chance of attracting talent if they enhance just one of the top four factors,” the report said. “Similarly, ignoring these factors can result in companies losing talent to their competitors.”
The key to attracting and retaining talent
Humanforce’s report Smarter talent acquisition: 5 strategies to get ahead of the competition identified five key strategies “to beat the talent crunch”.
The first is workforce planning. When done effectively, this can help business leaders identify workforce risks in the short, medium and long term; map out key skills for current and future roles; and offer employees learning and development opportunities.
The second strategy is to conduct a skills audit, which can help pinpoint an employee’s skills and capabilities. Having this knowledge can then help business leaders identify any skills gaps or growth opportunities for workers.
“Staying on top of the skills of your employees and providing continuous upskilling or reskilling opportunities can reap dividends,” the report said. “An audit should review the leadership and interpersonal skills of employees, as well as their hard technical skills and soft skills, like communication, time management and critical thinking.”
Read more about the strategies to attract talent in Humanforce’s report here.