How can employers aim to attain and retain the best team members in 2023, in what is expected to be a tough economy? Employee experience expert Hareta McMullin shares what smart employers should do.
With inflation, higher interest rates, talent shortages and low unemployment rates, many employers will be considering how to keep the lights on in their businesses this year.
So where should employers focus their energy in 2023? It starts with three areas: Improving leadership capabilities, leveraging employee experience and elevating purpose for profit.
Improving leadership capabilities
An October 2022 research report published by Slack on leadership and the war for talent, found that people value good leadership and stability over salary when choosing who to work for. The report also found that those with poor managers are more likely to disengage or ‘quiet quit.’ If you’ve ever had a poor manager, you get it. It’s clear that investing in your leadership capability makes good strategic, business sense.
Leveraging employee experience
As we continue to face a tight labour market and economic uncertainties, how your people feel at work will determine your ability to attract and retain them, whilst driving business performance. What’s behind your clever marketing, innovative tech stack, company processes, customer experience and number of sales? People.
Human-centered decision making will help you play the long game whilst your competitors are making short-sighted decisions.
Elevating purpose for profit
Customers and employees expect more from the businesses they buy from and work for. The same Slack report as mentioned above found that 2 in 3 employees want to feel that they are making a bigger impact. Establishing and amplifying what you stand for will help set your employer, and consumer brands apart in a saturated market. People-centric companies that are purpose-led, intentional and creative will attract (and retain) the best talent and aligned customers.
Building a modern workplace in 2023 by focusing on these three areas will enable employers to lead through continued change and uncertainty more confidently and with minimal (if any) fallout.
Easier said than done when employers have so many competing priorities, I know. So, what are some practical actions you can take to make these things happen?
Below are my predictions on what you need to be prioritising:
Integrating people strategy into business strategy
In a climate where so much relies on people, it’s never been more important to have a clear plan on how you will manage one of the largest costs to your business. A People strategy does not have to be intricate, expensive or over-engineered. It does need to be intentional, realistic and human-centered. Integrating it into your business strategy will help to ensure you achieve results that are going to retain your people, drive engagement and positively impact your bottom line.
Taking a modern approach to your benefits
Benefits don’t need to be costly – limitation breeds creativity. Engage your people, find out what’s important to them and collaboratively design benefits around those things. This could look like supporting those working on side hustles, trialling a 4-day work week or offering a wellbeing allowance. Linking benefits to your higher purpose and DE&I initiatives will set you apart from your competition and create even more impact.
Proactively tackling burnout
The 2022 Microsoft Work Trend Index found that 62% of Australian workers reported being burned out at work, compared to the global average of 48%. Chances are, you can relate. When people are burnt out, their ability to make sound decisions, solve problems, think creatively and innovate are all inhibited. One proven way to reduce this? Offer flexible work. The Atlassian 2022 State of Teams Report found that employees with ‘some flexibility’ were 22% less likely to experience burnout symptoms and 36% more likely to hold a positive outlook on the company’s culture. Business leaders who prioritise health and wellbeing will build long-term engagement and retain their people.
Focusing on employee/employer collaboration
Approach your relationship with your people, like you would a business partner. Employers have an opportunity to co-design and bring these ideas to life. Bringing employees in on the journey early, and involving them in the decision-making process is a great way to create ownership and accountability. The Atlassian 2022 State of Teams Report found that 63% of respondents have visibility into how decisions are made (up from 51% in 2021). This is a great example of how business leaders can build trust and loyalty.
The businesses that skimp out on people and culture are the businesses that are going to falter in the longer term. The businesses that are purpose-led, lead from the front and prioritise their employee experience are the ones that will stand the test of time.