Why Investing in Your Talent is Important: Survey Finds Many Negative Repercussions of Paying Below Industry Standards
The new Recruiting Top Talent: Investing in Quality report from Aerotek and the Human Capital Institute highlights the compensation practices most conducive to attracting and retaining top talent.
Professionals have found that one problem clearly isn't as widespread as some experts believe. Only 38 percent of respondents have seen a lack of skills in their job candidates, though the percentage grows and shrinks depending on the seniority of the position in question. Respondents see bigger issues when trying to fill senior-level positions, though the largest roadblock comes when the employers in question pay below the competition. That, on average, makes it twice as difficult to fill any specific role.
Since the applicant market is strong, companies are working to improve their recruiting strategies. There are three key ways in which they do so, including building company brand and reputation, offering better benefits and competing with the market when it comes to pay. All of these factors have seen adoption rates above 60 percent, and many workers who are seeing success believe they are the main overall reasons why they can pull new hires into their organizations. Other strategies vary among different types of jobs, but prominent ones have included employee development programs, increasing marketing efforts and adding new benefits.
Respondents have also noted that with an increased employee skill level, they're being more selective and expecting more in general. More than 40 percent of recruiters have reported that new hires are required to have more experience and education since the recession harmed the market in 2008. Most commonly, this has led to positions requiring more responsibility from the workers taking them. Several companies have worked to reduce their employee headcounts, causing this factor, and they have also focused more on training. New hires are also expected to have more education than recently expected, further contributing to more jobs today requiring increased complexity.
Meanwhile, this complexity is changing in different forms. Nearly 60 percent of companies have advanced the requirements and difficulties involved in their positions, with 65 percent in particular increasing the use of technology involved. Other common strategies included shortening project timeframes, increasing the complexity of tasks and trading more challenges for better flexibility.
Investing in future employee development
As a result, one of the latest directions that many companies are taking in an attempt to improve their current reporting abilities comes from spending more on their overall hiring and development practices, as well as employee compensation to ensure better overall hires. Compensation is a growing question, as are employee benefits. Studies cited by the source found that while increased productivity and innovation may be positives from this result, as would better technical skills and business critical abilities, there are still industry struggles inherent from limited budgets and equity conflicts. In the future, it will be necessary for many companies to change strategies to ensure they can remain key players in overall employee improvements.