Unemployment is low in a strong economy, leading to larger pools of candidates who are not only passive but who have also become pickier about the prospect of switching jobs. How can recruiters attract the right people for their open positions if the candidates they need are not interested?
Having large numbers of open roles can put companies through a downward spiral - lowering their revenue, productivity, and affecting their competitiveness. Recruiters need to hit a “sweet spot” in their hiring practices, where they’re not only hiring the best new candidates but also retaining the quality talent they already have.
When an employee puts in a sudden resignation, company productivity is decreased and the cost of replacing that employee is raised. Finding a suitable replacement to train for a role takes time, and time is something many companies may not have the luxury of having.
But what are some hacks that we can take a look at to solve this issue?
We sat down with Jim Stroud, a podcast producer, vlogger, blogger, and author, who is also an expert in talent sourcing. Take a look at our conversation about how companies can improve recruiting in this healthy economy by keeping employees happy.
Jim, what are some of your retention hacks?
Hack 1: Better Benefits with Lower Pay Over Fewer Benefits with Higher Pay
“Surprisingly, many employees prefer having a lower pay with better benefits than to have higher pay with fewer benefits. Benefits like education reimbursement, better healthcare insurance, and longer vacation time can actually help retain employees.
Student loans are the greatest burden in post-graduate life, with even United States former president, Barack Obama, barely paying off his student loans up until his 40s. These loans trap individuals in prolonged financial burdens, deeply affecting their quality of life. When companies provide programs that siphon money toward student loan debt, employees view the opportunity as a long-term benefit worth committing to.
Hack 2: Supervisor and Employee Relationship
“Treat your employees like they are your children - nurture them. Try to gain their trust and reward them with incentives when needed. It is essential for the manager to maintain a communicative boss-to-employee relationship to retain the loyalty of direct reports. You can improve this relationship by connecting with them on social media platforms, and organizing events like happy hours. Discuss different topics that are not work-related and try to get to know them personally. Congratulate them on their hard work and contribution once in a while. There are many ways you can maintain a communicative boss-to-employee relationship.”
Hack 3: “Returnship”
“A ‘returnship’ is where companies seek out people who have been out of the workforce for a while and offer them an internship. If the worker does well, the company hires them and if not, at least the worker can list the experience on their resume which will make it a bit easier for them to find work elsewhere. Some employers think if you have been out of work for so long, your skills have become stale and you are not as up to speed as someone who has been steadily employed. Workers who have been out of the market for a while tend to appreciate that opportunity and when given the chance, remain loyal to the company sponsoring the ‘returnship’ employee.”
Can you please share some of your personal tips from your experience?
“I'm not afraid to take risks. If I fail, then it’s a learning opportunity. It won't stop me from trying again, albeit differently next time. If nothing else, what I learned from past failures (of which there have been many) is that the more you focus on how you can help others, the less concerned you are about your own shortcomings. Make sense?”
Why do you want to share your tips with others?
“I think it’s important to share because as soon as you think you know everything, you know nothing. This stuff changes so fast, there is always something new, a new website, or a new trend, or some new tricks that you don’t know. If you have a mindset that you’re going to keep everything that you know to yourself, then people would not want to share with you things which you probably don’t know. That’s bad for you and it hurts the community overall.”
We would like to give a big thank you to Jim for supporting us all these years. And of course, this isn’t the end of his hacks and insights, and that’s why we worked with Jim to build our white paper, The Economy is Good. Is That Bad for Business? It was also our pleasure to have Jim be the speaker of our webinar, Retention is the New Recruiting. Watch our webinar recording and tune into our discussion!
To know more about Jim, visit jimstroud.com.