Common challenges in hiring employees – and retaining them

The Great Resignation

The Great Resignation has seen record numbers of people leaving their jobs following the pandemic lockdowns. A Microsoft survey of more than 30,000 global workers found that 41% were considering leaving their current job or making a career change within the next year.

For some, the pandemic helped individuals to reassess their priorities and encouraged them to pursue a different career, whilst for others, being at home more with their families made them revaluate their working patterns and their desire for more permanent flexibility.

However, many others simply felt ‘pushed’ to leave by their current employer; with their employer’s failure to respond appropriately to the pandemic, poor digital tools available or lack of support for mental health and wellbeing all likely reasons for leaving. Not only could these things pose challenges for retention – and the subsequent cost of recruiting new hires – but also for the reputation of your organisation and your ability to attract and hire new talent to replace those that are leaving.

Digital skills gaps

The trend towards automation is continuing – and that is having an impact on a variety of roles as well as posing challenges in hiring employees, particularly when it comes to attracting those with digital skills.

With the technology sector booming, we’ve seen an uptick in demand for digital talent, from developers and analysts to digital marketers. But whilst they’re in high demand, there’s still a talent shortage, with a lack of digitally skilled candidates for the increasingly digital-first roles being recruited for. Those with digital skills are more often flocking specifically to technology sectors, where candidates are being offered the kind of working culture they have now come to expect.

Take a look at five key strategies for attracting and hiring talented employees

1. Consider the generational expectations and challenges when attracting talent

Some of the biggest challenges in hiring employees comes from the failure by organisations to fully understand the expectations held by different generations of applicants. Whether your talent pool is typically Gen Z, Millennials (Gen Y) or Gen X, your strategies for attracting and recruiting them could potentially be different.

There are currently around 13.8 million millennials employed in the UK and as more Baby Boomers retire, this number is set to increase. By 2025, millennials are forecast to represent 75% of the working population.

Generally born in the 80s, millennials will have grown up during a period of rapid technological advancement, having what could be described as an ‘analogue childhood and a digital adulthood’ and Gen Z, born in the 90s, will be digital natives.  More traditional recruitment approaches just won’t cut it for these tech-savvy, switched-on digital generations. In addition Generation X – famously the subject of the iconic 1991 Douglas Coupland novel – predominantly born in the ‘70s – were the first to have widespread access to the internet and mobile phones and therefore not usually afraid of changing and evolving technology. Your organisation’s approach to technology to support the employee lifecycle should be a big consideration in talent attraction, development and retention.

Most millennials and Gen Z candidates will aspire to a better work-life balance and tend to see gig-economy flexibility combined with traditional employee stability as a positive mix. Gen X, known for their entrepreneurial spirit and strong work ethic, will also be engaging in the debate on how to achieve a positive work-life balance, so organisations with the ability to listen and be accommodating will fair best in attracting and retaining talent.

As the generation most likely to switch jobs, and be on the lookout for new opportunities, millennials aren’t likely to be tied to the same job for long if they’re not satisfied or they feel underappreciated so the types of incentives you offer, along with your organisation’s engagement tools, workplace wellbeing strategies and employee development opportunities will be vital for retention.

Gen X on the other hand are generally more likely to stay longer with an employer. Many in this age group will likely have accumulated a wealth of experience – possibly with skills that go beyond what they use in their current role so it’s important to consider ways to keep them engaged, challenged and rewarded so they don’t start looking elsewhere. As a rich source of experience, you risk losing more than just an employee – but their accumulated knowledge and understanding of your organisation too.

2. Build greater flexibility into your talent and recruitment strategies

Flexible working at the very least is now considered a ‘must-have’ for many, and will likely be part of the decision of where to apply. Offering employees more permanent flexibility could boost retention, whilst providing a competitive advantage for organisations in attracting the best new talent.

This is likely to differ in different industries of course; as the McKinsey Future of Work report found, not all industries will have the opportunity for remote or hybrid working – those in manufacturing, frontline care, retail or hospitality for example. However, those organisations that find ways to learn from those organisations that have been able to offer employees greater flexibility – if not specifically the ability to work remotely – will still be better off when it comes to attracting and retaining talent. And, when it comes to the battle for digital skills, a more flexible workplace, providing greater work-life balance will likely be a deal-breaker for digital talent.

And don’t forget, if you have roles that could feasibly be done remotely the majority of the time, this removes any geographical barriers that might otherwise have limited your talent pool. Another factor to consider when trying to attract those with key skills you require that are most in-demand.

3. A digital-first approach to recruitment and retention

Candidates today can interact with your organisation in so many ways. Each of these interactions provides a unique opportunity to personally engage with a candidate who could become one of your future leaders.

Millennials and Gen Z candidates in particular are used to getting information as and when they want it, and you should be able to offer this right through your employee lifecycle – from recruiting through to employee development and beyond. Have you thought about the following digital considerations in the employee journey?

• Candidates research employers before applying for jobs. “Everything a candidate has ever heard, read or witnessed about your company will enter into the decision of whether to work with your company,” says Will Staney, former Head of Global Recruiting at Glassdoor. Websites like Glassdoor (which allows employees to anonymously review their own workplace) may form part of this research so it’s worth checking out whether your existing employees have contributed and what they might say to a new candidate about your employee satisfaction rates.
• Advertising via social networks. Social networks are one of the most powerful ways of attracting and recruiting new talent, with the ability to design targeted ads for your ideal candidates and as a way for potential talent to get an idea of your brand and your values.
• A mobile optimised recruitment process. The ability to apply for vacancies with a few taps of their smartphone is something many candidates not only appreciate but expect as the norm, so ensuring job postings are at the very least mobile-friendly, and ideally, optimised specifically for mobile will remove any barriers to applying. Using a mobile-friendly branded applicant tracking system also enhances the employee experience, with the ability to show candidates more about the benefits of working at your organisation, apply for a job and use as a communication tool throughout the recruitment process.
• Automation to support, not replace, the personal touch. Increasingly, organisations are turning to automated HR technology to help them improve their recruitment operations and increase efficiencies, but that doesn’t mean the personal touch goes out the window. If anything it should be quite the opposite. Advanced recruitment software makes it easier to communicate with larger volumes of candidates and ensure personalised responses.
• A slick onboarding process. HR interactions should be slick and efficient throughout the onboarding phase too. One way to actively demonstrate your company’s technology credentials from the outset is to make use of HR software for onboarding in order to engage with successful candidates once an offer is made. Reducing admin and making HR tasks digital with self-service software tools is also likely to give a positive first impression.
• Digitally connected employees can be the secret weapon in talent attraction. Everyone wants to work for businesses where morale is high, employees are happy, and satisfaction is positive. Employee referrals could make a real difference to recruitment success, so referral programmes are worth encouraging. As Raymond Carvery of Harvard Business Publishing points out; utilising your employees’ ability to spread information about your organisation could be the best recruiting investment you make.

Employers need to truly embrace technology when looking to attract up and coming talent. Not just in using social media to support recruitment, but also leveraging digital tools and apps to support upskilling, career development, social collaboration, skills sharing and employee recognition.

4. The role of company culture and employer branding in attracting and retaining talent

Jason Seiden of Brand Amper says that “a company has a reputation in the market for its products and what it sells. But companies also have a reputation as employers.” This ‘reputation as employers’ is referred to as employer branding, which CIPD defines as ‘…a set of attributes and qualities, often intangible, that makes an organisation distinctive, promises a particular kind of employment experience, and appeals to those people who will thrive and perform best in its culture’.

Research suggests that organisations who implement an effective employer brand have been able to cut their cost-per-hire in half and attract more than 3 times as many applicants per vacancy.

Although many businesses are making CSR, workplace wellbeing and Diversity, Equity And Inclusion (DEI) top priorities, Robert Half’s report suggests that businesses have more to do in attracting and retaining talent, with candidates increasingly being focused on businesses’ values and culture. Whilst salary may be a major factor for most, there are many other considerations candidates have:

• Aligned values. According to a Deloitte Millennial Survey, “millennials and Gen Zs, in general, will patronise and support companies that align with their values. Younger generations are putting their money where their mouths are when it comes to supporting businesses that make a positive impact on society. Many say they will not hesitate to lessen or end a consumer relationship when they disagree with a company’s business practices, values or political leanings.”
• New talent will likely value transparency and authenticity so let them see some of your people enjoying what they do. You could demonstrate organisational culture across your social channels – from behind the scenes footage of your workplace on Snapchat and Twitter, to photos of your working environment and company events on Facebook to employee quotes and interviews with existing employees on LinkedIn.
• Sense of purpose. Most candidates and employees also want to know where they fit into their jobs, teams, and the aims of their organisation. As one Gallup survey noted, millennials “look for work that fuels their sense of purpose and makes them feel important”. This is reflected in the stats: 71% of millennials who strongly agreed that they understood what made their organisation different from its competitors said they plan to be with their company for at least one year.

The survey also revealed that only 29% of millennials are engaged in their existing workplace and 60% are open to new opportunities. Making sure employees can see where their work fits in with an organisational strategy and how they contribute to success could make all the difference with retention.

• Employees as advocates. Once candidates become employees, they’ll expect to live the brand they experienced during the recruitment process, so it must closely align with your true organisational culture and employee experience. When it does, your new hires will become engaged and passionate employees and the best advocates of your brand.
• Measure employee satisfaction. If you don’t have a good understanding of the current culture, use regular pulse surveys to find out how your current employees feel and measure satisfaction rates - and make sure you take action on their feedback. Whilst this helps with retention, it can also provide some great stats to attract talent too.

5. Career progression and talent development opportunities

Millennials in particular have strong expectations when it comes to career progression, with a PWC report finding that millennials would rather choose to work for a company that can offer a route to rise through the ranks, over one paying an initially attractive wage.

This is backed up by the Gallup survey which highlighted that when millennials aren’t challenged, they become complacent, disengaged, and ultimately leave.

Building a culture that supports employees’ ability to move around within your organisation, along with the digital tools, such as career development software and talent development programmes, for example, will help promote talent retention.

With Gen X candidates and employees having accumulated a wealth of experience, skills and knowledge, most will want to know about your organisation’s training to support upskilling (potentially in relation to leadership and management opportunities) and performance management that supports their long term career goals and aspirations.

HR can also leverage the experience and skills of Gen X employees to help bridge the gap between experienced Baby Boomers who are retiring from the workforce and upcoming millennials with newly acquired knowledge. A mentoring programme is an ideal way to encourage skills transfer across generational groups and ensure important knowledge is retained within the business, even when individuals leave. 

Ensuring skilled employees are rapidly identified through both formal appraisal processes and informal talent assessments and provided opportunities to progress in their existing role or across the organisation will create a culture that all employees aspire to work in. By doing so, the business benefits from accumulated knowledge and skill, and the individual achieves greater personal fulfilment in their role and the knowledge that their employer invests in them.

Ultimately, analysing all of the valuable people data and workforce metrics extracted from your HR software should form the basis of any robust recruitment or talent attraction and retention strategy.