More firms are taking a cautious approach to increasing permanent headcount, choosing instead to rely on temporary resources. It’s important to note, though, that this confidence is also being reflected across the candidate market, which is creating greater talent attraction and retention challenges. In fact, the quarterly Jobs Confidence Index – an economic confidence tracker produced in partnership with the Centre for Economics and Business Research (Cebr) – has consistently indicated high workers’ confidence in their job prospects throughout 2023. The proportion of survey respondents expressing such confidence has hovered over the 60 percent mark throughout last year. With candidate confidence high while skills are in short supply and competition for talent is rife, a strong employer value proposition (EVP) will be crucial to attracting and retaining staff this year.

Building on from the point above, expect to see candidates and employees continue to seek more from their place of work. The three motivators of employee engagement that are expressed time and again are finding purpose in what you do, access to professional development and work-life balance. This has been influenced by not only the changes in the working world in recent years but also the growth in Gen Z employees who often place greater emphasis on ethical and cultural values when considering working for a particular organisation. But firms will need to better appreciate and match the nuanced needs of the multi generational workforce, if they are to successfully navigate the complex skills attraction landscape. Increasingly, employers are somewhat disconnected from talent pools and this will only have a detrimental impact on resources. In fact, almost half (47 percent) of workers want tuition assistance or reimbursement as part of their benefits package so they can take charge of their own development. Yet only a quarter of businesses currently offer this. Employers who commit to employee training and development – at the recruitment stage and beyond – are far more likely to attract and retain quality talent.

T he cost-of-living crisis has hit staff and businesses alike, but continuously offering pay rises isn’t a sustainable solution for employers. Indeed, just 27 percent of f irms surveyed for the Salary Guide report indicated that they are able to increase salaries in line with inflation at the moment. With competition for talent still rife, employers will need to be more creative about remuneration and benefits packages if they are to meet hiring and retention targets. It is also important to be aligned with the wants and needs of the workforce on this issue. Making assumptions as to what people are seeking can lead to the creation of unappealing benefits packages. In a similar vein, a lack of flexibility around these can also lead to benefit schemes becoming swiftly outdated. If we look at the current desires of workers, there’s a range of benefits that have an appeal. Financial allowances for working from home ranked highly among workers (cited by 61 percent), with meal vouchers (60 percent) and sabbaticals (58 percent) also top of the list. The wellbeing of staff will also be a key trend in talent attraction and retention strategies throughout 2024. There has been a heightened sense of the need to safeguard employee mental and physical health since the pandemic which isn’t showing signs of slowing. Aside from business leaders recognising the detrimental impact that issues such as burnout can have on skills and productivity, staff themselves are also more vocal on this topic and more likely to actively seek employers that show they care for their people. With the return to the office debate continuing to rage on, poor work/life balance is an issue that talent management teams will likely need to tackle until a satisfactory solution is found. In the meantime, there is a shift towards wellbeing-focused attraction strategies. More than two-thirds (67 percent) of employers are already offering mental health resources to staff, while 38 percent are also supplying stress reduction programmes. Beyond bolstering mental wellbeing, there has also been a notable uptick in workers pushing for other health-related perks such as; dental (62 percent), hospitalisation (59 percent) or outpatient (57 percent) insurance packages. They’re also interested in staying well through physical activity – almost half (48 percent) would like their employer to offer gym memberships and 47 percent want access to in-office physical activities. So employers willing to go further with employee care could quickly gain a competitive edge in the hiring market.

T here’s certainly no question that diversity, equity and inclusion (DEI) is recognised as a critical element of all talent attraction strategies. Perhaps the best way to demonstrate the value that workers place on diversity is to look at what emerging generations are saying. Over three-quarters (76 percent) of Millennial and Gen Z candidates surveyed revealed that DEI policies are a crucial factor when assessing a potential job opportunity and over a third have turned down employers that don’t align with their values. To tackle attitudes from the top down, some employers have started involving workers in key management decisions to help diversify thought processes and help young change-makers have a positive impact. Businesses can also introduce hiring practices that tackle unconscious biases, from using inclusive language in job adverts to implementing fit-for-purpose AI. It’s looking highly unlikely the talent landscape will settle this year, but that doesn’t mean that employers are in a dire situation, but rather that HR and talent acquisition teams will play a more pivotal role in key corporate decisions.

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