REWARD
Nick Day ACIPP, chief executive officer, JGA Recruitment , explains how the payroll job market is currently akin to a game of musical chairs P icture the intensity of a game of musical chairs, where every vacant seat represents an open position, accurate salary information isn’t merely desirable; it’s indispensable. Navigating payroll recruitment and retention in 2024
to fair pay in challenging circumstances. This recognition translates to heightened employee appreciation and, consequently, improved retention. Work-life balance boosts retention In an era where remote work prevails, a healthy work-life balance is another pivotal factor in retaining talent. The pandemic underscored the payroll industry’s ability to deliver accurate solutions remotely. However, it also magnified the burnout experienced by many payroll professionals. The resulting sense of overwork and underappreciation has sadly led to an exodus of skilled payroll talent from their employers or even the industry altogether. A balanced work-life equilibrium entails feeling engaged whilst also enjoying your personal life. Gallup’s research highlighted its importance in a study which showed that employees with poor work-life balance are twice as likely to seek new opportunities. Therefore, as we enter 2024, maintaining this balance will remain critical in retaining top payroll talent. The recruitment process and low employee retention The repercussions of low employee retention resonate through every level of an organisation. Direct costs associated with hiring and training new staff and the ripple effects on team morale can significantly impact productivity. High turnover rates translate to more time spent on the recruitment cycle instead of time better allocated to managing payroll
That’s why JGA Recruitment introduced a specialised payroll career salary calculator (https://ow.ly/Znsj50Q54W2), because it meticulously considers factors like payroll size, frequency, qualification, sector and location. The tool provides precise compensation data tailored to payroll- specific careers’ intricacies. It’s essential because salary remains a cornerstone of job satisfaction, significantly affecting employee retention. When salaries are inadequate, employees often feel undervalued and discontent, leading them to contemplate leaving. A study by PayScale revealed that 25% of employees considering departure cited insufficient pay as the primary reason. Moreover, the report emphasised the direct link between fair pay and job satisfaction, with 75% of workers content when compensated at or above market rate. Fair pay is a tangible expression of an organisation’s appreciation for its workforce. It fosters trust and loyalty, pivotal elements influencing employee retention rates. Conversely, offering a competitive compensation package elevates morale and bolsters retention rates. It’s not just about the payslip but about ensuring that benefits meet employees’ needs and expectations. For example, the current surge in cost-of-living expenses amid economic recovery amplifies the importance of fair compensation. Organisations providing timely cost-of-living adjustments or out-of- cycle pay reviews exhibit a commitment
and each eager participant is a hopeful candidate. The thrill of the game mirrors the competitive landscape of today’s payroll job market. But in this talent contest, there’s a hidden influence at play – a soundtrack called ‘retention’. No, it’s not the familiar tune of ‘My Payroll Career’ (https:// ow.ly/1YFr50Q54EP) but rather an invisible force, shaping who claims the coveted chair. Imagine cultivating an environment so magnetic that employees not only stay but also flourish. Central to this endeavour is understanding the importance of employee retention and its profound impact on sustained success. It transcends mere retention and fosters a fair and supportive environment which cultivates commitment, productivity and job satisfaction. While salary often takes the spotlight in candidate attraction and retention discussions, it’s just one note in a larger symphony. How can your payroll employee retention strategies align with individual aspirations and business objectives? Let’s delve into the strategies defining payroll recruitment and retention in 2024. How does salary impact on employee retention? Understanding your workforce’s pay expectations is fundamental to navigating today’s job market. In this high-stakes game of recruitment and retention,
| Professional in Payroll, Pensions and Reward | December 2023 - January 2024 | Issue 96 42
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