According to a new report from WTW, 66% of businesses in North America have increased hiring activity since the beginning of the year, with two in three employers having difficulty attracting and retaining employees with digital skills (71%) and professional employees (66%). In addition, 61% are struggling to hire and keep hourly employees.
The majority of employers are making strategic moves in an attempt to attract and keep these hard-to-find skilled workers.
Specifically, 86% are hiring employees at the higher end of salary ranges, 84% are increasing flexibility in where employees work (e.g., home versus office) and how they work, 81% are offering sign-on bonuses to attract talent, and 65% are using retention bonuses to keep employees. Those organisations that are enhancing the use of retention bonuses are most likely to target such bonuses to managers (82%) and professionals (80%). In addition, 55% are increasing training opportunities.
“Employers are leaving no stones unturned in their battle to find and keep talent,” said Lesli Jennings, North America leader, Work, Rewards and Careers, WTW. “While making enhancements to compensation programs can support employers’ immediate recruitment and retention efforts, employers recognize they will need to pull levers in addition to compensation and reinforce a connection to the overall employee experience.”
In an effort to retain and attract talent, leaders will have to rethink their entire compensation and rewards strategy and consider the longer term financial impacts of larger payouts, bigger bonuses and increased salaries for already high-paid employees.