HR Tip: Attracting and retaining employees in a complex labor market

Whether they are dealing with the tight labor market or a turnover tsunami, human resource leaders know the labor market has been transformed. While many attribute it to the individual introspective triggered by the pandemic with workers reassessing both their careers and lifestyles, others focus on the more traditional factors of compensation and benefits. But what is clear, companies can no longer assume they know what workers want. They need to get information from their workers and the people they are recruiting to be competitive and be innovative with strategies that will strengthen recruitment and impact retention.

Changes to policies around leave, flexible work scheduling, greater support for childcare, employee referral bonuses, merit increases, mental health and wellness benefits, critical-illness and accident insurance, fertility coverage, career path development, and providing stretch assignments to help advance employees' career are some popular choices. A Willis Towers Watson survey of employers found that 92 percent said enhancing the employee experience will be an important priority at their organizations over the next three years, compared with just 52 percent before the pandemic.

The accounting giant, Grant Thornton, surveyed its workers during the pandemic and found the two biggest challenges were taking care of family members and getting three meals a day on the table - either because of food deprivation or the time constraints of parents working at home while caring for their children. The company set up free Grubhub accounts for every employee and provided each worker a $100 credit, which it has occasionally replenished.

Employees of another accounting giant, PwC, expressed a need for time to work without interruptions, focus on career development, or just take time for themselves. The company encouraged employees not to schedule meetings or send any e-mails after noon on Fridays. To encourage employees to take vacations, it is paying employees $250 when they take off 40 consecutive hours.

In addition to prioritizing the employee experience, employers that develop a holistic view of an employee's skill set, including soft and hard skills, career trajectory, engagement, and mental health and wellness, maximize the talent they already have. Learning needs to be woven into the company's culture. A skills-based approach to hiring also can expand the talent pool.

Even in professions such as nursing and retail where it may seem like there is no opportunity for flexibility, employers are adapting to ensure a more sustainable career. Hospitals are allowing nurses to complete paperwork at home with a VPN and more flexibility is offered in shift scheduling.

While it may be tempting to lower hiring standards, hiring someone who isn't fit for the job opens the door to multiple issues, not the least of which is costly workers' compensation claims. Protect yourself by using a Conditional Offer of Employment and Post-Offer/Pre-Placement Medical Questionnaire. Be sure the physician conducting pre-employment exams understands the requirements of the job and maintain robust onboarding and training processes.