Employees in the driving seat for 2023
By Niamh O’ Brien, Director of Talent Management, BDO Ireland
Employee retention has become a pressing issue in the current business climate, particularly for SMEs.
More than 80% of Irish SMEs find retaining staff a significant challenge, with eight out of ten spending more time on recruitment compared to 2019, according to the latest Irish Senior Management Business Sentiment Survey conducted by BDO and the employer body Ibec.
When it comes to the demands around work-life balance and wellbeing, it is very important not to take your existing staff for granted.
When 80% of SMEs are saying that they are having trouble attracting and retaining staff, it's not surprising that so many SMEs are starting to create EVPs as part of their efforts to make sure their staff are aware of the benefits they offer.
Creating an Employee Value Proposition (EVP) and utilising HCM Digital platforms such as Ceridian Dayforce to drive engagement can help businesses retain their staff and enhance employee experience. An EVP is a critical tool for attracting and retaining top talent and should focus on employee benefits, work-life balance, career development opportunities, and company culture.
The EVP can help employers develop good habits about how they articulate their benefits to their teams. Niamh O'Brien, Director of Talent Management at BDO who has worked in this sector for the past 20 years says, “The biggest change is that where people once focused on salary, they are now asking about work flexibility, work-life balance, and wellbeing, which is where the EVP is of great value."
The Irish Senior Management Business Sentiment Survey found that nearly half of the Irish SMEs don't have any current or future research and development plans. Creating an EVP can help businesses stay competitive in a challenging job market and retain top talent.
The Great Resignation is a talent migration that has come about due to the pandemic causing people to review their work-life balance. As a result, companies are asking themselves questions, looking at how they can get ahead of that trend.
Candidates are turning the tables. Effectively, companies now need a CV to tell candidates about their benefits and their company culture. Candidates particularly want to know about flexibility, hybrid work models and their paths to career progression.
BDO are working with a lot of companies now to help them to pull an EVP together. The key thing is that the information must be real. It is not just something to stick in the handbook.
As an example, gender pay reporting will also be essential in the year ahead, as will a sharper focus on diversity and inclusion. Utilising or enhancing your HCM technology to better analyse data on gender pay, businesses can identify and address disparities in income and promotions.
In conclusion, employee retention has become a pressing issue for businesses, particularly SMEs. Therefore, companies must create an EVP that reflects their unique selling points and values to retain top talent and enhance employee engagement. The key to creating an effective EVP and retaining top talent is to focus on work-life balance, employee wellbeing, and career development opportunities. Unpinning this is a HR technology that streamlines HR processes, enhance employee engagement, and promote talent intelligence.
With the challenges presented in the current climate businesses that invest in these areas will be better positioned to retain top talent and stay competitive in a challenging job market.