How Employers Are Shifting Strategies as Recruitment and Retention Struggles Continue

This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.

Workplace dynamics have significantly changed in the last few years. Employers have been forced to respond to increasing worker demands for workplace flexibility, well-being initiatives and inclusive cultures. In addition, workers are becoming more vocal about management styles they are no longer willing to tolerate. This has resulted in many employers continuing to struggle to attract and retain talent. To address these struggles, many organizations have started altering their approach to workforce attraction and retention.

This article discusses current recruitment and retention trends and provides several strategies employers are using to help address and overcome such struggles.

Recruitment and Retention Struggles Continue

Employers continue to grapple with recruitment and retention struggles due in large part to changing employee preferences. According to a recent study by Willis Towers Watson, 83% of employers reported difficulty attracting employees, while 74% reported difficulty retaining employees. These are the highest figures in the past 12 years. Many organizations are still dealing with the lingering impact of the COVID-19 pandemic, which reshaped workers’ expectations, including where and when they work. This has forced many organizations to adapt their recruitment strategies.

Moreover, the tight labor market increased competition among employers for key talent, pressuring organizations to offer attractive compensation and benefits packages. Despite these efforts, nearly 75% of employers are experiencing talent shortages and difficulty hiring, according to a 2023 survey by global workforce solutions company ManpowerGroup. As these trends persist, employers’ recruitment and retention struggles continue. This is forcing employers to develop new and innovative approaches to address these challenges.

Employees Are More Selective in Where They’re Willing to Work

Workplace environments and management approaches are impacting where employees choose to work, according to a recent survey by online employment solution company Monster. The survey results revealed that certain employment practices and behaviors create anxious or negative feelings among employees, which employees consider red flags. The survey also found that the biggest employee concern is being micromanaged by supervisors and managers. Other red flags included:

  • Excessive meetings
  • Inflexible work hours
  • Team bonding exercises or out-of-office events
  • Mandatory assignments during the interview process
  • Inability to negotiate benefits

Awareness of these concerns can allow employers to evaluate whether any red flags are present in their organizations and make necessary changes to improve their recruitment and retention efforts.

Strategies to Address Recruitment and Retention Struggles

Due to these ongoing struggles, many employers are responding with multiple strategies as well as focusing on emotional intelligence in their attraction and retention efforts. This is leading many organizations to shift to taking a holistic approach to attracting and retaining workers by focusing on customizable benefits, positive work environments and meaningful work assignments and duties.

Employers can consider the following strategies as they respond to their ongoing recruitment and retention struggles:

  • Prioritize onboarding. Employees who go through a structured onboarding are 58% more likely to remain with the organization after three years, according to a study by the Wynhurst Group. By including onboarding in an organization’s overall engagement and retention strategy, employers can better communicate their values, foster a positive relationship and communicate expectations to set employees up for success. Onboarding is also an opportunity to educate employees on the full range of available benefits, ensuring that employees are aware of all the benefits available to them.
  • Create meaningful connections. Making sure employees have meaningful workplace connections can help employees feel supported and valued. It also tends to increase workers’ loyalty and commitment to an organization. Employers can do this when new employees join the organization by assigning mentors, scheduling regular check-ins and organizing team-building activities.
  • Utilize employee engagement surveys. Employee feedback can be a valuable resource for employers to understand their workforce. Surveys can uncover underlying issues, such as decreased productivity or high turnover rates, and create actionable change that drives progress within an organization. Employers who effectively utilize employee surveys may see many benefits, such as increased employee engagement, job satisfaction and retention.
  • Train managers and supervisors. Managers can significantly impact employee engagement, job satisfaction and productivity, and retention. When managers lack important interpersonal skills or emotional intelligence, they can contribute to high rates of turnover. Organizations can train managers to have strong interpersonal skills (e.g., connection, honesty, respect and communication) so they can better recognize and respond to employee needs.
  • Improve workplace culture. Toxic workplace culture is the top reason employees quit their jobs, according to a recent survey by employment website FlexJobs. When employees feel overworked and underappreciated, they’re more likely to look for new opportunities. Employers can create a positive and healthy workplace culture by promoting mental health and well-being and fostering open and transparent communication.

Takeaway

Employers who successfully address the reasons employees choose not to accept job offers or quit their jobs will likely experience less time to fill open roles and reduced employee turnover rates. This can help organizations reduce hiring costs, improve employee morale, and give a competitive advantage over similar organizations that are unable to address their ongoing recruitment and retention challenges.

For more workplace resources, contact RISQ Consulting today.

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Your Business Risks in an Economic Downturn

This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.

Without a thorough evaluation of its business model, any manufacturer can be severely threatened by an economic downturn. While devising creative solutions to keep your business running despite unfavorable economic conditions, keep in mind that changes to your business can result in changes to your liability exposure.

Facing Your Supply Chain

It’s no secret that the financial security of your business hinges on that of your partners, vendors and suppliers and that in tough times, everyone is looking for a way to cut costs.

Never rely on the insurance coverage of your business partners to protect your assets or protect against third-party liability claims. In the event of financial insolvency, a business’s upstream partner organizations could eventually be held liable for claims filed against it. However, healthy, well-insured partner organizations are no substitute for comprehensive liability coverage for your business.

Ultimately, in order to protect your company it may be a smart long-term investment to expand your coverage limits. While many businesses may opt to cut costs by lowering their coverage, dropping coverage could result in paying out of pocket for an expensive claim caused by suppliers’ shortcomings. If you are involved in outsourcing or are considering this option to mitigate costs, first talk to RISQ Consulting about covering the associated risks.

Verify Contracts

In a turbulent economic climate, it is more important than ever to have thorough, seamless contracts. They should clearly outline the obligation of each party and discuss dispute resolution policies so that if something goes wrong, you avoid a messy and expensive disagreement.

It is never a good business decision to sign a contract hastily, but especially in difficult economic times be sure to look into all the risks and legal ramifications. Small companies who partner with larger companies are often strong-armed into making decisions with which they are not completely comfortable.

When you experiment with new products or services, you will inevitably face a learning curve, which puts you at a larger risk of facing product liability claims.

Making Changes

In many cases, change is the best way of reacting to an economic crisis. It allows you to explore and exploit new customer bases and offer additional products or services. While expanding in either of these ways can revolutionize your business and keep you afloat in tough times, it could also expose you to additional liability.

When you experiment with new products or services, you will inevitably face a learning curve, which puts you at a larger risk of facing product liability claims. You may want to consider purchasing additional lines of coverage to protect yourself, as your surplus lines insurance policy may only cover claims arising from one particular product.

By the same token, shifting or expanding your client base may put you at risk of unexpected class action lawsuits. The same product or service may evoke disparate reactions in different sectors of the market. This is another instance in which it is important to be covered for potential liabilities resulting from a change in your business. Contact RISQ Consulting today to be sure your plan for escaping an economic downturn unscathed does not backfire.

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Hiring Trends Are Pushing Employers to Focus on the Employee Experience

This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.

Employers have been forced to navigate and respond to several challenges over the last few years, including the COVID-19 pandemic, a tight labor market, rising health care costs, inflation and a potential recession. These challenges have pushed many organizations and their employees to their limits. According to a recent survey from management consulting firm McKinsey, more than half of business leaders say their organizations are not prepared for future economic and geopolitical challenges.

Workforce changes are now impacting employers in 2023. Organizations are posting fewer job openings, extending fewer offers and prioritizing best-quality hires. As a result, employers are shifting from prioritizing growth to focusing on hiring key talent. However, many organizations have failed to find effective ways to support employees’ long-term health, well-being and growth, potentially undermining their efforts to attract and retain top talent. This article explores how current hiring trends are forcing employers to redefine the employee experience in order to improve hiring outcomes and attraction and retention.

Current Hiring Trends

A recent study from enterprise management cloud company Workday found a 10% decline in open roles in the first quarter of 2023 and a 4% decline in job offers compared to the same time last year, even though the number of applicants has remained relatively the same. This is the first time since 2020 that requisition growth has declined. This trend is especially pronounced among tech and media organizations, where job seekers are expected to compete with approximately 27 candidates for each opening. This number marks a 248% increase from the first quarter of 2022.

These statistics likely indicate the end of the growth era as employers shift their attention to efficiency over growth. Economic and market factors are pushing organizations to increasingly prioritize hiring the right candidates for each new position and internal productivity, leading to fewer open positions and job offers. As a result, ensuring a positive employee experience is becoming more important to help employers improve employee engagement, productivity and retention.

Strategies to Improve Employee Experience

As employers shift from growth to efficiency, a positive employee experience is essential to improve hiring outcomes, attraction and retention efforts and productivity. Understanding the current workplace dynamics and employee experience, including any challenges and opportunities, can help employers establish strategies to improve employee experience.

Focusing on Employee Engagement

The following are aspects employers can emphasize as they focus on employee engagement:

  • Employee health and well-being—As employers increasingly prioritize efficiency over growth, employees will likely feel pressure to be more productive. This can increase the risk of employee burnout, especially since many employees are already under significant pressure to perform. Therefore, employers will need to find ways to improve employee efficiency without increasing burnout risk. Supporting workers’ health and well-being can help reduce this risk.
  • Hybrid work—While the majority of employees feel productive in a hybrid environment, many employers find that hybrid or remote work makes it difficult to trust that employees are remaining productive outside of the office. Employers are more likely to improve the employee experience by focusing on outcomes rather than hours worked. Defining clear goals and objectives, as well as ways to effectively measure them, can enable employers to better prioritize employee work and cultivate an environment of trust, even in hybrid or remote environments. This can help reduce the risk of employee burnout and foster employee autonomy.
  • Growth and recognition—With a heightened emphasis on existing employees rather than new hires for growth and innovation, employees must provide talented workers and high performers with recognition and ample growth opportunities. Providing internal mobility opportunities can boost employee engagement and retention. It can also increase workforce productivity and efficiency by ensuring employees are in the right positions for their skill sets. Employers can further ensure this by mapping skills and capabilities across their organizations.
  • Organizational strategy—As internal and external pressures shift, creating clear strategic goals can help employees prioritize their work in accordance with high-value initiatives. This can allow employees to stay focused and improve engagement by utilizing their skills and providing a sense of purpose.

Leveraging Technology

As employers increasingly focus on employee experience to further organizational growth and innovation, leveraging new technology, such as artificial intelligence (AI) and machine learning (ML), can help create additional growth opportunities. Incorporating AI and ML technologies can help organizations run more efficiently by automating and streamlining manual, error-prone tasks, allowing employees to attend to high-value work. Employers that offer technology and other tools to support their workforce can help improve the employee experience by increasing job satisfaction. This can also help organizations to grow efficiently and economically. However, employers should familiarize themselves with the functionality and limitations of AI and ML technologies. Being aware of the limitations can allow organizations to evaluate and determine how best to use these technologies.

Employer Takeaway

As organizations adjust to the end of growth-based hiring, prioritizing workplace efficiency and employee experience is essential. Employers can do this by supporting employee health, well-being and productivity and leveraging technology. By considering employee needs, employers can focus on areas of improvement and increase workforce engagement.

For more workplace resources, contact RISQ Consulting today.

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How Employers Fail to Upskill and Retain Key Talent

This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.

The current labor market presents challenges for employers looking to attract and retain talented employees. Despite recent highly publicized layoffs, especially in the tech sector, the unemployment rate has remained relatively low. This makes replacing talent challenging. Losing talent is also expensive, making retention critical for the success of every employer. This article highlights essential ways employers fail to upskill and retain talent and provides guidance for how they can improve retention efforts.

The Consequences of Failing to Retain Talent

High rates of employee turnover can damage morale, decrease productivity and harm customer relationships. It can also result in skills shortages. According to management consulting firm McKinsey & Company, most (87%) employers currently have skills gaps or expect to have them within the next few years. Replacing talented workers can be time-consuming and expensive, which can negatively impact an employer’s bottom line.

How Employers Fail to Upskill and Retain Talent

Unfortunately, retention remains a struggle for many organizations. A recent study by LinkedIn found that 61% of American employees were considering leaving their jobs in 2023. This number was even higher among younger generations of workers, with 72% of Generation Z workers and 66% of Millennials considering leaving their jobs in 2023. Employers can reduce employee turnover and boost job loyalty and satisfaction by understanding and addressing common factors that drive employees to quit. Common reasons employees leave their jobs include the following:

  • Lack of employee engagement—Employers often fall into the trap of believing that paying their employees well is the only factor that impacts an employee’s decision to stay at their current organization. While financial compensation is important, research shows that engagement also plays a crucial role in retention. According to analytics and advisory company Gallup, employees who are engaged and have enhanced well-being are 59% less likely to look for a job at a different organization within the next 12 months. Despite the importance of engagement, Gallup found that just one-third of employees are engaged at their jobs, causing decreased job satisfaction, performance and retention.
  • Absence of growth and learning opportunities—Upskilling and reskilling employees can increase employee engagement and decrease skills gaps. It’s also crucial for retaining employees, especially younger generations of workers who often prioritize career development over higher-paying positions. Growth opportunities are similarly important. In fact, the lack of growth opportunities is one of the biggest reasons employees leave their jobs. According to the online recruitment site Zippia, 76% of employees are looking for opportunities to expand their careers, and 45% would stay at their organizations longer if their employer invested in their learning and development. Despite this, over half (59%) of surveyed employees reported no formal workplace training.
  • Lack of managerial support—According to Gallup, managers account for 70% of the variance in employee engagement across business units. Managers significantly impact employee engagement, retention, job satisfaction and productivity. When managers prioritize productivity over people or lack vital interpersonal skills, such as communication and authenticity, they can contribute to high turnover rates.
  • Poor company culture—A 2022 survey by the employment website FlexJobs found that toxic company culture was the number one reason people quit their jobs. These impressions are often made as early as onboarding, where a negative experience can set the tone for an employee’s overall experience at an organization. Lack of a healthy work-life balance was also high on the list of reasons employees quit, identified by 49% of surveyed workers. When employees feel overworked and underappreciated, they’re more likely to look for jobs outside of their organization; this is especially true of employees in mentally unhealthy workplaces or toxic environments.

Strategies for Upskilling and Retaining Talent

Employees want to work for organizations that prioritize them as people and invest in their development. Employers should consider the following strategies for upskilling and retaining talent:

  • Focus on skills-based hiring and hiring the right employee the first time.
  • Create a positive, efficient onboarding process.
  • Hire managers with strong interpersonal skills (e.g., connection, honesty, respect and communication).
  • Recognize employees for their accomplishments.
  • Encourage employee participation in important business decisions.
  • Ask for employee feedback (e.g., surveys, in-person meetings).
  • Create career ladders for transparency about career progression.
  • Provide dedicated time for employee upskilling (e.g., block out time on employees’ calendars or provide optional training during lunch breaks).
  • Encourage mentorship relationships.
  • Offer customized training programs and tools.
  • Prioritize internal mobility over outside hires.
  • Treat employees as people (e.g., promote flexibility, autonomy and work-life balance).
  • Provide generous benefits and paid time off.
  • Focus on creating a positive company culture that promotes mental health and employee well-being.

Conclusion

Employers who address common reasons employees quit their jobs may experience reduced rates of turnover. This can reduce hiring costs, boost employee morale and provide a competitive advantage over similar organizations that fail to retain talented workers successfully.

Contact us today for more workplace resources.

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For The Freaking Fun Of It!

By Jennifer Outcelt, Creative Content Architect

For some people out in the adult world, self-care, relaxation, recreation, and creative endeavors are a priority. For others, they are a distant second to career, house work, child care, and curling up on the couch clutching a cell phone paralyzed by pure exhaustion. Sure, each group of adults has sporadic episodes mimicking the other, yet the tendencies seem consistent. I, having previously believed myself to exist in the former group, find that I am in fact part of the latter. I’m offended by this self-realization, yet I don’t seem too sorry about realizing it.  It’s hard to complain to myself about myself… they both make such good points!

Basically, my priorities have taken it upon themselves to secretly shift into a realm where any fun activity is paired with guilt. I’ve found myself questioning the value of the time I’ve spent doing anything not directly correlated with an assignment or chore. I watch my 3 year old do 47 summersaults on the couch in a row with nary a care or goal in mind other than sheer delight. My envious eyes have identified her as a possible cause for this shift (though I wouldn’t dare allow an iota of resentment to manifest). Meanwhile, I’ve had a brand new iPad for 2 months that I purchased for the sole purpose of learning to draw digitally in Procreate, and have yet to put more than 8 hours of creative fun into because, “I should probably fold that laundry instead.” With life and all its demands, I’ve been telling myself that fun must be earned… but good luck affording it. Is this the recommended outlook on self-care or fun for fun’s sake? H E double hockey sticks, NO.

There are countless benefits to relaxation and abstract endeavors. For one; stress relief (that one sounds nice). Also, increased energy for other work, more creative thought and problem solving, improved social skills, HAPPINESS, better health, bonding with others, new skills, and dang it all, just way more fun! So with all these benefits, why is it so difficult to jump away from the have-to-dos and dive completely recklessly into the want-to-dos?

Apparently, it’s just a matter of choice. You can convince yourself that any choice is the right one… I obviously convinced myself sacrificing creative art for laundry was the right choice. So why not switch it up and bat for the other team here? They have cooler jersey’s and seem to cheer way more. Plus, their roster is written in glitter pen on the back of a bar tab receipt! After reading an article reminding me of the power of fun (link below), I’m finally ready to be a part of the other team. Team “For The Freaking Fun Of It!”

https://www.nytimes.com/2021/12/23/well/mind/having-fun-suceeding-coronavirus-pandemic.html

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Understanding the Quiet Hiring Trend

This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.

HR professionals have likely already heard about “quiet quitting,” where employees put no more effort into their jobs than necessary, and “quiet firing,” where employers or managers slowly pull back employee duties instead of outright firing them. Now, there’s another phrase gaining traction in workplaces: “quiet hiring.”

While the term for it is new, quiet hiring isn’t necessarily a new concept. Given the ongoing talent shortage and a looming recession, more companies are exploring this trend to fill jobs and address priorities. This article explores the quiet hiring trend, its benefits and ways employers can leverage the talent strategy.

What Is Quiet Hiring?

Quiet hiring is when companies upskill existing employees and move them to new roles to fit business needs. It’s proven to be an efficient, cost-effective way for employers to snag in-demand talent without going through traditional external hiring channels. Quiet hiring addresses an organization’s immediate needs while not technically doing any new hiring.

An organization may already quietly identify and reward current workers who consistently exceed expectations and objectives. But forward-thinking organizations use quiet hiring to identify their own peak performers and promote them to avoid relying on external hires for open key positions. It is also used to acquire new skills and capabilities without adding new employees.

About 80% of workers in the United States say they have been “quiet hired,” according to a recent Monster survey. Furthermore, 63% of workers view quiet hiring as an opportunity to learn new professional skills. Career advancement opportunities, in turn, are helping employers retain employees. Even though it might seem like an organization may gain the most from quiet hiring, employees can benefit from this latest trend by securing a raise or promotion or developing new skills. In this way, quiet hiring gives power back to employees who want to move forward in their careers and be rewarded for exemplary workplace performance. The quiet hiring strategy is gaining traction since it benefits both employers and employees.

How Can Employers Quiet Hire?

Whether they know it or not, many organizations already engage in quiet hiring. However, some are being deliberate about it. Savvy companies like Google are already leveraging quiet hiring as a core component of their recruitment strategy. It’s expected that other companies will follow and look within to fill open or critical roles.

In many cases, organizations are not necessarily doing hiring freezes or layoffs, but they may be slowing down their hiring. Despite changes in hiring paces, organizations still have financial goals and business objectives to meet. Quiet hiring is rising to the top as a way for employers to work best with the talent that they currently have and make adjustments as needed for organizational success.

Consider the following ways that organizations are hiring quietly:

  • Focusing on internal talent mobility to address business priorities
  • Moving employees—temporarily or permanently—into different roles or responsibilities
  • Upskilling employees to meet organizational needs
  • Leveraging short-term contractors or gig workers to bring in additional talent

Although internal mobility is often seen as a positive for workers, employers should keep in mind that some employees may interpret quiet hiring as being told that their regular job—what they were initially hired for—isn’t particularly important at the moment. This transparency is even more critical if an employee’s move is permanent and the old responsibilities are not backfilled.

Supervisors and managers can help address these concerns by clearly articulating why the new project or department is crucial to organizational success. Regardless of the decision to quiet hire, it’s vital for employers to ensure employees feel valued and part of something bigger. If these extra steps aren’t taken, current employees may feel undervalued and start looking for other career opportunities outside the organization.

Summary

Quiet hiring allows employers and managers to hone in on employees who are already going above and beyond in their daily work and proving they have what it takes to excel in a given role. As with any trend or strategy, quiet hiring will impact every workplace and workforce differently. Many organizations already take part in this strategy. However, some employers may need to look closer at their current workforce to better meet organizational goals and objectives.

Reach out to RISQ Consulting for guidance on the latest employee attraction and retention trends.

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