REWARD
HOW BEST TO ATTRACT AND RETAIN THE TOP TALENT
Phil Pepper, Employment Partner, Shakespeare Martineau, discusses the ways businesses can attract and retain the best staff in the modern working world
A ttracting and retaining top talent is proving problematic for employers in the current economic climate. According to the Integrated Benefits Institute, 61% of employers struggle to hire employees in the first place and 73% struggle to keep them, showing that the job market is competitive, not just for job seekers but for employers too. The associated research can be found here: https://ow.ly/wtxc50VRTIe. When searching for a new position, people look at a range of jobs and opportunities, comparing companies’ salaries and benefits before making their decision. Employers are always competing to attract sought-after top talent, finding a balance between offering competitive remuneration packages and benefits while remaining realistic. The job market is very driven by the state of the economy and, with the recent changes brought about by the Employment Rights Bill, there’s certainly a turbulent feeling. There’s general concern around the effect of the Bill on employers, especially in recruitment. The rise in employer National Insurance contributions has increased the cost of employing
people, and those costs are likely to increase further with other changes being proposed by the Government. This all means that companies need to be even more selective when hiring to ensure they recruit top talent. The proposed changes to sick pay, unfair dismissal rights and flexible working requests may also destabilise the working landscape. As a result, many companies are facing high staff turnover rates, which is problematic. Training new staff when someone leaves costs money, takes up time and requires lots of resources. A major challenge facing employers is adapting to employees’ evolving expectations and requirements. Each generation’s views on work ethic, company culture, workplace environment and management style change, and as a result, employers need to adapt their culture to fit. This is critical to get right, yet can remain a point of tension between employers and candidates of different generations. Employers should aim to strike a balance between offering the stability and hierarchy typically valued by older generations, while also demonstrating flexibility and work-life
balance, which often appeals to younger people entering the workforce for the first time. Diversity is also a challenge for employers, who must actively strive towards a diverse workforce while also ensuring they employ the best person
PROFESSI NAL in Payroll, Pensions and Reward
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June 2025 | Issue 111
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