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Companies face an immense challenge in 2023: securing the right talent. There's no understating its importance; almost 8 in 10 executives recently polled by KPMG consider this their top priority for the year. With a further 61% foreseeing talent as a key issue over the next 3-5 years, now more than ever, organisations must prioritise strategies to attract and retain high quality personnel.
Retaining talent became increasingly difficult for employers last year, according to the recent Metlife Australia 2022 Employee Benefits Trends Study (EBTS), with 1 in 3 employers reporting a retention rate below 60%. Even more concerning is the finding that 43% of employees surveyed considered leaving their employers in the past 12 months, and this is highest among employees aged 25-39 years.
For the first time in almost half a century, employees have more bargaining power and choice, so business leaders need to think strategically when it comes to cultivating talent. According to the KPMG report and Chair, Alison Kitchen, organisations must understand their employees' wants and needs, while providing an environment that supports learning, development, and growth - all of which are necessary for fostering retention. With a growing divide between the generations when it comes to their views on work and careers, Generation Zs and Millennials are reportedly more focused on roles that align with their values. As we have previously noted, in choosing where they work, employees prioritise other factors over salary alone. Factors such as learning opportunities, quality teams, values alignment, and in particular – flexibility are highly attractive.
Over a relatively short time it seems Australian employers have embraced the hybrid work model, with the KPMG study revealing employers’ “remote working concerns” had dropped to number 8 on their list of concerns. Now, only 26% of the respondents see it amongst their top 5 worries - sharply contrasting against last year's 48%. This shift highlights just how far companies have come in understanding the power of flexibility in gaining a competitive edge.
To successfully recruit new employees, as well as fostering employee retention and growth among existing staff, businesses need to create a working environment that enables employees to have a level of balance in their work life, while also providing ample space for development during their tenure.
To find out more this topic or to discuss how you can attract and retain talent in your organisation, please reach out to the Global Employee Benefits team at Honan Insurance Group.
Head of Client Service - Global Benefits
