The age old saying “pay peanuts and you will get monkeys” has never been more relevant in today’s talent-short market. Candidates are demanding more and rightly so, with the highly skilled becoming harder to come across, it makes for simple supply and demand economics.
However, with some thinking outside the box, investment in the recruitment process and building on a great company culture, there are ways to still avoid a hefty wage bill and ensure that you have a team that delivers.
With job seekers applying for roles way above skill sets and candidates with experience realizing they are worth a lot more (especially given the recent minimum wage rise and the aligning of higher wages), it can feel like it is doom and gloom from an employer’s point of view. With additional questions like “how do I retain my staff?” and “how do I employ the right person?” ever present, taking a strategic approach is paramount.
But while some employees are still looking for extra dollars in the pay packet, most just want to feel valued, offered more flexibility and enjoy a good work culture.
A number of complementary benefits in addition to base pay are becoming increasingly popular remuneration mechanisms. Bringing together all the investments an organisation makes in its workforce and including this in the employment agreement could sway the right candidate your way.
How to highlight the employment package advantages
These benefits could be things that are already done within your organisation and align with the company values, but are not highlighted in the employment package. By clearly communicating what is on offer, it can actively engage response from potential candidates and also drive current employees’ loyalty and engagement and overall a better organisational culture and performance.
If you think it is expensive to hire a professional – wait until you hire a monkey.
The offerings can be as simple as health and wellness benefits – free employment assistance programs (EAP) and medical services to ensure the employee feels cared for.
Learning and development, or insurances and shareholding options could also be an option depending on the company. Often small, thought-out benefits can go a long way.
I recently met an employee who took a $15,000 per annum pay drop to take on a role that offered one afternoon off a fortnight for personal things, a new phone, a yearly medical, and birthday leave. Nothing close to $15,000 value for the employer, yet a much happier and productive employee.
From the employee’s point of view, she values the care factor and her personal time afternoon, over the wages she received at the previous role. “I value that I can book appointments and not feel guilty on skipping work and without trying to fit it all in a lunch break and I also feel like they genuinely care for me, it really was what clinched the deal”.
Not only do the benefits add to a better workplace culture and environment, it makes people want to stay, or better yet come and work for you.
Fair and well-aligned bass pay needed
Kiwi psyche will always make us look for the carrot. However, they will not forget the base pay and this still needs to be fair and aligned with the demands of the role. At the end of the day, it is what pays for their lifestyle. Highlighting the base pay along with the perks can be included in employment contracts and wording this can be a minefield for some. This is where employing the skills of a HR company is essential.
Our Talent ID Recruitment and Human Resource Specialists have been keeping a close eye on the market and are very aware of the current talent shortage. This is evident with great candidates being employed elsewhere within hours of even being identified as a potential employee. In some cases, we are now lining candidates up 4-6 months in advance, knowing that they will be in demand.
Given the current situation and recruitment market, many organisations are turning to Talent ID for professional advice to update contracts and general HR needs. They are not just a recruitment specialist for the entire Bay of Plenty region but are also HR specialists that are being utilised more and more by businesses to support their daily HR needs.
This includes support through the writing and updating of employment and contractor agreements and they can advise you on how best to word your job descriptions and your employment packages, so you can put your best foot forward when recruiting into your business.
All in all, in this changing and challenging market the message is clear. Value your people, pay them what they are worth and they will help you grow your business. Highlight your culture and benefits so you will attract more of the right people. Let the professionals take care of the hard stuff because if you think it is expensive to hire a professional – wait until you hire a monkey.