Preparing for 2025: Forward-thinking strategies to attract and retain top talent

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TABLE OF CONTENTS

What emerging talent wants

State of the workforce

Rise of the employer value proposition

Creating an employer value proposition

Defining your workplace culture

Top attraction drivers

Best practices to drive attraction

It starts at the top

Key takeaways for attracting and retaining top talent

About Insperity

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As each new generation enters the workforce, a fresh set of challenges and opportunities arrives for American business leaders.

What once motivated their parents and grandparents in the workplace may block efforts to attract and retain younger generations. At the same time, younger attitudes about work can reshape career and job search expectations of more senior professionals.

What emerging talent wantsWith the job market saturated with employment opportunities – making it one in which the talent pool calls the shots – it’s critical for owners, managers and C-suite executives to monitor evolving workforce expectations.

By identifying changing attitudes about work, life and careers, while also staying on top of fundamental fair and equitable business practices, savvy company leaders can position themselves to attract and retain top-notch talent for years to come.

Trends indicate that employees are looking for more than just a paycheck. They want to work for businesses that: • Are socially responsible• Promote work-life balance• Foster autonomy and flexibility• Have fair and equitable practices (including a commitment to inclusion and diversity)• Take care of their people and build meaningful connections with them • Nurture professional development and career advancement in their team members

To better understand these motives – and how they fit into your own company’s long-term human resources strategy, let’s take a closer look at the workforce overall and the forces that will continue to shape it moving forward.

State of the workforceGone are the days of lifelong company loyalty, the kind of arrangement that began in a college placement office and ended with the presentation of a gold watch at a retirement party. In its place has sprung up a mindset shaped by the “gig economy.”

This approach to work is one in which talent is more apt to regard business opportunities as short-term alliances. For the rising workforce majority – a combination of primarily Millennials (born 1980-1994) and Generation Z (born 1995-2015) – a job is more likely to be regarded as a chance to nurture their personal skill sets and advance their own careers. With this mindset in place, they’re redefining their expectations of employers and employment.

Meanwhile, society has become more technology dependent, transforming how we interact as humans, colleagues and on teams. We now live much of our lives on the internet, communicating via smart phones or other electronic devices. Our personal and professional networks include a massive number of “connections” whom we may never have met.

Networks aren’t new, in the strictest sense. In the past, people learned about job openings or made referrals through colleagues, friends and neighbors. Even today, these personal social networks play important roles in recruitment.

Yet, now massive online communities over which employers have little or no influence can determine whether an excellent candidate decides to apply for an opening. In these digital spaces, current and former employees can share their experiences (often anonymously) and rate businesses in ways that have transformed the workplace.

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With this transformation comes the opportunity for emerging job seekers to shop around in pursuit of the right employer. Born into the Information Age, these digital natives already rely heavily on research and feedback for all sorts of consumer decisions. It’s only natural that they’d take a similar approach to exploring career options. The world is at their fingertips in ways that their grandparents and parents couldn’t have imagined when they began their own careers.

This massive paradigm shift is proving challenging for even the most technologically savvy business leaders. There’s no reason to give up hope. Many people will need, however, to change how they approach HR – from the first interactions with potential job applicants in the digital space to how they manage, train and promote employees.

The good news? With the right HR strategies in place, you can cultivate a workforce of brand ambassadors who will help differentiate your company (online and off) as a best place to work.

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Rise of the employer value propositionWhile it may be tempting to think you need only persuade job seekers to consider your company attractive, the reality is that employees today are prone to continuously evaluating whether to stay.

According to a recent State of the American Workplace Report from Gallup:1

Considered together, this data suggests that businesses need to be diligent in their messaging. You must communicate clearly why talent should choose – or continue to choose – your workplace over that of a competitor.

And although employers may be unable to control what is said about them on a website or on social media, they do have some influence over internal and external messaging regarding their workplaces. This can be as simple as working to ensure all communication has a steady voice befitting the company and reflecting its mission and branding.

Or, to take things a step further, businesses can convey what they want candidates and employees to know about their workplace through a strategic statement commonly known as an employer value proposition.

This statement is a clearly thought-out, well-worded description of the company as embodied through its values and ideals. It must be authentic and accurate, with no disconnect between what you say as a company and what you do. Failure on this front can be costly, so you’ll want to craft your language carefully.

1 Source: Gallup.com; State of the American Workplace 2017

51% 35%

33%

51% of U.S. employees say they are actively looking for a new job or watching for openings.

35% of workers report having changed jobs recently.

Only 33% of employees feel engaged with their jobs.

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Creating an employer value propositionOnce agreed upon and put in place, a company’s EVP can be a useful way of signaling to their ideal job candidates that the company is a good fit. Using just a few carefully selected words, your EVP should hit the sweet spot between what top talent wants and the company needs. Insights into company culture, particularly regarding overarching goals and social responsibility, are especially effective when it comes to attracting top-notch emerging talent.

Developing the messaging regarding who you are as an employer is a similar process to when you developed your brand. Your employer value proposition and brand should be closely connected. Instead of communicating your market differentiator and value proposition to your customer base, however, your EVP is crafted to address your candidate and employee base.

This is the step that many business owners struggle with because they build a message based on what they think the candidate is looking for – as opposed to what candidates themselves are seeking.

In other words, it’s vital to do a little research before putting together an EVP. This investigative work can be done casually via conversations with existing team members and industry colleagues, as well as spending time on job search websites. It’s also helpful to stay abreast of HR trends via articles, reports and reputable blogs.

Once you’ve got a sense of what the workforce wants, use a few carefully chosen words to connect the dots between those desires and how your organization operationalizes those expectations on a day-to-day basis within your company culture.

Basic steps to creating an employee value proposition:• Research extensively what top candidates and employees seek in a workplace, in exchange for their work (beyond salary and benefits).• Determine the overlap between your brand, your culture, company values and what top candidates and employees seek.• In as few words as possible, summarize that overlap in a clear, engaging, employee-centered statement.

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Defining your workplace cultureMany organizations spend a lot of time defining their mission, vision and values, thinking that these three components are their culture and brand. This is a false assumption. Although these statements are useful touchstones for shaping culture and branding, the reality is that culture is much bigger and more complex than any of these declarations.

Basically, your culture is a byproduct of how you operate – how you run your business. It results from your day-to-day choices, both big and small, and includes how you:• Craft and communicate job responsibilities• Recruit and onboard new hires • Offer benefits (and to whom)• Communicate with employees about any and every topic• Address workplace disputes• Approach paid time off (PTO), such as vacation, holidays and leave • Foster attitudes related to work-life balance• Create, maintain and utilize workspaces • Nurture skills and career advancement• Develop and present policies and procedures • Address performance and termination issues

The importance of culture cannot be underestimated – especially when it comes to attracting and retaining talent.

That said, when it comes to signaling specifically to younger job candidates, there are certain features in workplace cultures that stand out as being more desirable. When actively recruiting for talent, it’s helpful to know what those features are. Doing so will help you work to ensure that your culture reflects those desires and allow you to craft an EVP that signals your company is a good fit for candidates’ daily duties and long-term ambitions.

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Top attraction driversAccording to Hired’s 2018 Global Brand Health Report, job seekers understandably rank compensation and benefits as their first concern.2 This is followed closely, however, by company culture. The third most common factor? Whether a new position offers employees the opportunity to learn new skills. While this research was specific to technology workers, it aligns with what other sources and industries report as well.

Granted, previous generations placed an emphasis on compensation and benefits, too. That’s only natural, with the impulse to cover the basics of life lining up neatly with Maslow’s hierarchy of needs. Beyond that, company culture and development opportunities are unique drivers for Millennial and Gen Z job seekers and, arguably, the tail end of Gen X (born 1965-1979) as well. Not surprising, the same research found that when candidates were asked to consider factors that would cause them to not apply: 46% said poor reputation 36% said negative company culture

In other words, if you’re not building a workplace that factors these generational desires into your culture and practices, then you run the risk of shrinking further an already small talent pool.

Moreover, a cleverly phrased EVP can’t be a convenient bandage your company applies to give the appearance of desirability. You must work within your culture to ensure it aligns with workforce expectations. Failure to do so means your shortcomings are more apt to be broadcast through social and digital platforms, further hamstringing your recruitment efforts.

2 Source: Hired.com; 2018 Global Brand Health Report

Best practices to drive attractionLet’s take a closer look at the five best practices to attract aspiring talent and discover how you can refine your culture to better reflect and align with them.

Corporate social responsibility Research conducted by Glassdoor found that 75% of surveyed workers between the ages of 18-34 (more so than any other group) were passionate about employer commitment to hot-button issues affecting the country and their constitutional rights. These issues include immigration, equal rights and climate change. Nearly 84% of U.S. workers believe companies have an important voice in proposed legislation, regulation and executive orders that could affect the employer’s business or the lives of employees.³

In other words, there’s an expectation among workers that companies take a stand on key issues of the day.

How businesses go about doing that varies. Your own company must decide what topics are suitably aligned with your goals and mission, not to mention your customer base. Once that’s determined, you must ensure your culture and messaging reflect those choices on everything from social media shares to EVPs. This makes it easier to attract top talent that is aligned with your culture and work.

Another aspect to consider is how actively your business encourages employees to participate in initiatives that directly impact areas about which they are personally passionate. One way to address this is to offer a set number of paid volunteer hours that employees can use monthly or quarterly, depending on what your workflow will allow.

3 Source: Glassdoor.com; New Survey Reveals 75% of Millennials Expect Employers to Take a Stand on Social Issues

An added benefit of allowing staff to engage with community events and activities during the workday? Employees become brand ambassadors within the spaces where they volunteer, perhaps making fruitful connections between your company, potential job candidates and even prospective clients and customers.

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Work-life balanceMore than any previous generation, Millennials and Gen Zers are apt to use paid time off (PTO) to focus on outside, non-work commitments. Their eagerness to be fully engaged with all aspects of their lives – from childcare to volunteerism, eldercare to travel – means there is a significant rise in demand for work in businesses that honor employee work-life balance.

Typically, how businesses can meet these expectations is presented in terms of flexibility practices: remote work arrangements, generous PTO, maternity and paternity leave, staggered work schedules, sabbaticals and so forth. While those options are certainly useful strategies to integrate into a workplace culture and mark a transformation in traditional business attitudes toward leave, there’s something more at play.

Today’s employees want employers to grasp that they have a host of responsibilities and goals outside of the workplace. They want managers who trust, allow and encourage them to manage both work and life functions. This can be challenging to do, especially when the task then falls to management to empower employees to live full, vibrant lives on the one hand, while ensuring adequate staffing levels, work load distribution and productivity on the other. Still, many companies are doing just that and will continue to do so moving forward. What works for your company may differ from what works for another business, of course. At root, however, you want to create a culture that promotes balance.

One example of this is trusting that employees can handle personal matters (doctor’s appointments and driver’s license renewals, for example) during the workday without abusing the practice or interrupting productivity or work flow. While not every company can accommodate these day-to-day requirements, the more common stressors that employees can eliminate, the more balance they will have.

Autonomy and flexibilityOn first blush, it may seem that there’s little difference between fostering employee work-life balance and providing autonomy and flexibility. The distinction lies, however, in the fact that the latter is about empowering and trusting your team to make choices about when, where and how they work.

Folding autonomy and flexibility into your culture has a real benefit, not only to your employees but also your bottom line. Research conducted by Gallup found that employees are 43% less likely to experience high levels of burnout when they have a choice in deciding what tasks to do, when to do them, and how much time to spend on them.⁴

Happier employees are less apt to leave or suffer negative health consequences from stress. As an employer or manager, this means that you spend less time (and money) replacing staff or dealing with frequent absences.

Flexibility is sometimes regarded as a synonym for a casual environment, a place where traditional, buttoned-up formal business wear is eschewed in favor of more casual clothing and open-plan offices. While that vibe is indeed desirable for many younger employees, they also tend to seek freedom in choosing the time of day and location in which they’re most productive, given their individual work styles. This could involve telecommuting or structuring the workplace in such a way that people can find a quiet corner (with Wi-Fi) to work when a deadline looms.

Another in-demand option in certain industries is a part-time self-scheduling agreement. This empowers employees to make some scheduling decisions independent of management. They can self-select and swap hours as desired, and a manager ultimately proofs the plan to ensure there are no gaps in coverage.

⁴ Source: Gallup.com; Millennials Are Burning Out

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The need for increased autonomy and flexibility can create a challenging dynamic for some managers, especially those more seasoned professionals who came up the ranks in a different era. You’ve likely heard the adage that people leave managers, not jobs, which means that it’s critical to develop leaders who can coach junior staffers for peak performance and delegate appropriately. Strong managers who promote autonomy and leverage the knowledge and expertise of their employees will be a critical factor in not only retaining top talent but attracting it as well.

Given that Gen Zers have strong entrepreneurial tendencies and Millennials crave autonomy, they’re on the lookout for business reviews from current employees highlighting a culture of autonomy and flexibility – or the lack thereof.

Fair and equitable practicesJust as the new workforce majority seeks companies that are addressing big-picture social and cultural issues of the day, they also seek job opportunities with businesses known for fair and equitable practices.

Millennials and Gen Z are the first generations to grow up in the wake of the Americans with Disabilities Act of 1990. Amended in 2008 and now known as the Americans with Disabilities Amendments Act, the legislation not only provides greater protections for those with disabilities but has also heightened sensitivity to the plight of disabled citizens in the workplace.

The ADAA, coupled with rising political interest in gender, race and sexual orientation equity, has led to candidates and employees placing a premium on fair treatment – not only of themselves as individuals but also historically disenfranchised groups.

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Your company’s commitment to fair, equitable practices can be expressed in trainings and statements, yet the most effective way to convey it is through how you treat your employees. Hiring and promoting diverse staff members is a way to demonstrate your commitment to inclusiveness, but there are other ways in which employers can help to level the playing field.

For example, one hot-button topic is pay equity. Thanks to recent national news stories, most people are aware that women have historically earned less than men in comparable positions. The stance a company takes on this issue, and how they pay women and minorities in relation to men, is often deemed a barometer for how forward-thinking a business is.

On top of pay equity, there’s the issue of pay compression (also known as salary or wage compression). This phenomenon occurs when there is little or no compensation difference between employees at different levels of experience or responsibility. This is more apt to be an issue for current employees, of course, but failure to notice and correct pay compression can cause employees to seek work elsewhere.

Conducting internal audits to ensure that people in similar positions with similar experience levels are paid equitably will help build a culture of equality. This cannot exist without mechanisms in place to ensure internal equity. That includes evaluating your current pay practices to proactively address any internal inequity that may exist.

For example, compensation policies that limit salary increases for internal transfers to a certain percentage of an employee’s salary (or a maximum increase amount) can lead to internal inequity and drive dissatisfaction and disengagement. It may be best to leverage the same compensation methodology for both internal and external candidates.

By creating a fair and equitable environment, current employees will become your advocates and help attract top talent. The extra effort is worthwhile.

Development and career advancement The internal transfer pay practice discussed above can also breed the thought process that it’s better to quit an organization than to stay and grow within it. That’s not the signal you want to send to any group of workers, but especially not to Millennials and Gen Zers, who have a strong internal drive for advancement and professional development.

That doesn’t mean, however, that these generations’ career aspirations hinge completely on advancing up the traditional career ladder or watching their salaries zoom skyward. They also want to grow skill sets, improve their knowledge base and enhance their professional appeal. Playing to this interest doesn’t always require a promotion or title change. A best practice management solution is to encourage regular, one-on-one coaching and development conversations.

Through authentic engagement, managers can connect work and training to future career goals – including individual aspirations beyond the current place of employment. Working together, supervisor and supervisee can identify knowledge, skills and ability gaps that can be closed. With customized professional development plans in hand, employees can take on certain projects to fill those gaps. Even cross-training to cover a peer or colleague when they’re away can be a useful means of keeping employees engaged.

Other options to expand and develop talent include:• Cross-training, job-shadowing and mentoring staff members• Covering costs related to continuing education or certification• Supporting membership and participation in professional associations• Sending employees to industry conferences and trade shows• Providing workshops and staff knowledge sharing sessions

Although it’s not typically discussed in light of employee development, artificial intelligence provides important opportunities to expand skill sets. Machine-based learning through computer programs and apps can be an affordable means of training staff.

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It starts at the topHopefully, you have learned some fresh ideas for how to enhance your recruitment and retention efforts. As you prepare to incorporate them into your workplace, however, it’s important to remember one key group of stakeholders: your company leadership.

It’s vital, through their words and deeds, that your managers, human resource leaders and C-suite executives ensure your company’s most precious resource (your employees) continuously experiences a workplace that accurately reflects your brand, mission and values. Their integrity, authenticity and upstanding behavior ensures top talent not only will want to apply to work for your company but will also want to stay with it for years to come.

Key takeaways for attracting and retaining top talent• Build a culture that creates brand ambassadors.

• Culture is created by how you choose to operate. Make sure that your day-to-day practices match what your brand communicates.

• The job search is a two-way process. Your application process should be streamlined, easy-to-use and communicate your employee value proposition.

• Millennials and Gen Zers are attracted to companies that care about socially relevant matters that impact their lives professionally and personally.

• Focus on removing stressors and challenges that cause employees to feel out of balance.

• Most employees experience lower rates of burnout if they’re given the choice as to what to do, how to do it, and when to do it.

• Ensure that you have practices in place to account for equity and pay compression.

• Provide opportunities for staff members to grow their skills and experience based on their future professional and personal goals.

• Make sure all leaders are committed to doing the necessary work to ensure that your day-to-day employee experience mirrors your employer brand.

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Want more resources to guide you?Keeping up with the latest in business trends and best practices can be challenging.Insperity can help.

From in-depth e-books to interactive infographics, we provide a variety of complimentaryonline resources that are chock-full of useful and timely content for business leaders like you.Explore the latest news and proven advice on a wide array of business and HR topics, includingbusiness performance, benefits and compensation, leadership and management, and legalcompliance that help keep you in tune with new ideas and best practices.

E-books Browse our online library of comprehensive e-books to gain insight from ourseasoned business and HR professionals on issues giving you the most trouble.

BlogWith new posts going up each week, The Insperity blog keeps you up to speedon the latest HR industry topics. While you’re there, be sure to sign up for ouremail newsletter.

Checklists Checking off boxes as you go can feel cathartic, but are you checking from the right list? Our checklists will help you feel confident you’re following best practices.

InfographicsVisual learners can rejoice – we’ve got you covered, too. Our infographics allow youto visualize business trends and statistics in understandable charts and graphics.

Case studies Need some evidence that our HR strategies really work? Our case studies showcase them in action.

Visit insperity.com/resources

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