The crisis in employee recruitment and retention is widening as businesses face the challenge of staying relevant to employee needs in their benefits packages.
This paradigm shift is not merely a reactionary measure to the pandemic; rather, it represents the new norm in the realm of work. In order to maintain competitiveness and long-term sustainability, small and medium-sized enterprises (SMEs) must delve into flexible working models, bolster their benefits packages, and emphasise non-financial advantages that enhance employees’ work-life balance.
One effective approach to achieve flexibility is through flexible benefits, as Emma Cromarty, an independent Human Resource Specialist and director of ECHR Ltd, points out. She emphasises that providing comprehensive benefits packages can attract and retain top-tier talent, even without surpassing budget limitations.
Emma Cromarty, an independent Human Resource Specialist and director of EC Human Resources Ltd, notes the increasing demand for assistance in recruitment and employee retention in the HR sector. While she clarifies that she is not a recruitment agency, she highlights that more businesses seek support beyond traditional recruitment agencies. This trend indicates a growing recognition of the importance of holistic HR solutions.
According to a study by Aviva, a significant percentage (41%) of employees are enticed to their current positions due to the favourable work-life balance offered. Surprisingly, this figure surpasses the percentage of individuals prioritising salary as the main factor. This finding underscores the significance of work-life balance in attracting and retaining talent.
The rising costs of living and the demands for higher wages add further pressure on SMEs. Affordability becomes a challenge, particularly when combined with recent increases in the minimum wage. Emma assists employers in exploring alternative solutions, such as bonuses and benefits packages, to supplement wages while staying within their salary budgets. These strategies contribute to job satisfaction and, in turn, help retain employees.
Small businesses that resist modern work practices bear a considerable burden. Failure to adapt can result in recruitment difficulties, reduced productivity, and challenges in retaining skilled individuals. By clinging to traditional models, companies risk lagging behind their more progressive counterparts and missing out on valuable opportunities for growth and success.
“To remain competitive and sustainable in the long run, SMEs must embrace these changes,” emphasises Emma. She highlights the importance of exploring flexible working models, enhancing benefits packages, and promoting non-financial advantages that improve employees’ work-life balance. This paradigm shift is not solely a response to the pandemic; it signifies the new reality of the working world.
