As we reach the halfway point of 2024, UK employers are bracing themselves for a unique set of challenges, with employee retention topping the list. According to a survey conducted by HR software provider Ciphr, 51% of HR respondents expressed concern about retaining skilled workers. This is a clear indication that holding onto top talent will be the main hurdle for UK employers in the coming years.
Shifting Workplace Dynamics
The workplace dynamics are shifting, and employers are grappling with an average of 11 distinct challenges. Among these, meeting salary expectations and maintaining work-life balance are prominent, as reported by 46% of employers. The rise of remote and hybrid work models has added another layer of complexity, with 45% of respondents finding it challenging to adapt to staff expectations for remote or hybrid working.
Importance of Investing in Employees
Claire Williams, Chief People and Operations Officer of Ciphr, emphasises the importance of investing in employees and adapting to changing work environments to ensure operational success. This investment goes beyond financial remuneration and includes a focus on employee well-being and engagement.
“Like it or not, the world of work is changing. Employers need to step up and invest in their people if they want to hire the best talent and then retain them.
“Employers are facing a range of challenges. A volatile global economy that has fast-changing and sweeping ramifications for our labour market. There’s salary inflation that’s not been seen at this scale before (recently, at least). Technical advancements continue to evolve at lightspeed, expanding digital skills gaps. We have multi-generational workforces with wildly different expectations and demands from their employers when it comes to values, purpose, flexible working, diversity, social impact, and so on.
“Many organisations are also being impacted by tighter budgets as they are having to invest in new technologies, increase their compliance standards and levels of professionalisation, and mature their business to keep up with competitors and the market.
“Investing in your people, however, doesn’t necessarily need huge budgets. It does require leaders to invest in a different mindset though. Those that fail to recognise and respond to these challenges will ultimately be left behind.”
HR Priorities in Response to Challenges
In response to these challenges, HR teams have set clear priorities. Retaining skilled employees and recruiting staff are at the top of their list, along with supporting health and wellbeing at work. Resolving salary issues and providing ongoing training are also high on the agenda.
Labour Market Outlook
The latest CIPD Labour Market Outlook suggests a high level of vacancies by historic standards, but the net employment balance is on a downward trajectory. This could potentially lead to a decrease in turnover and vacancies later in 2024.
Strategies for Fostering Employee Engagement and Satisfaction
To foster employee engagement and satisfaction, organisations can implement several strategies. These include cultivating a positive company culture, providing opportunities for growth and development, recognising and rewarding employee contributions, offering competitive compensation and benefits, and fostering a supportive work environment.
Encouraging Work-Life Balance and Well-Being
Encouraging work-life balance, providing opportunities for meaningful work, fostering strong relationships and collaboration, supporting employee well-being, and regularly seeking feedback and acting on it are also crucial. However, it’s important to remember that these strategies may need to be tailored to the specific needs and culture of each organisation.
Conclusion
In conclusion, the key to staff retention lies in understanding and addressing the evolving needs of employees, investing in their well-being and development, and creating a supportive and engaging work environment. By doing so, UK employers can overcome the challenges they face and ensure operational success.