Employee Benefit News for School, City and County Employers

2023 Attraction and Retention Trends

Written by Scott Fritz | Jan 30, 2023 3:47:57 PM

2 minute read

Although the labor market is leveling out this year, it’s safe to assume that employers will be challenged as they compete for top talent. Some companies will increase salaries while others may look beyond pay alone to optimize their offerings and enhance the employee experience. As they compete for talent, many may take a total rewards approach to fulfill employees’ workplace desires.

4 Trends to Watch

1. Mental Health Support

Many employees are still feeling burnt out or are battling mental health challenges because of the pandemic, inflation, or their job duties. Many employers may take a proactive approach to employee mental well-being and resilience. Health experts predict that employees’ mental health will continue to decline amid economic uncertainty.

Employers can offer benefits, perks and wellness programs that account for mental well-being. To address burnout, more are offering or expanding their employee assistance programs, behavioral health anti-stigma campaigns, and training for recognizing employee behavioral health issues.

 

2. Focus on Belonging

Belonging is a critical component to company culture. Employees are looking for a work environment that’s authentic and accepting. Employers can elevate employee experiences by creating workplaces where employees feel they belong and can be their authentic selves. When a workplace has a solid and positive employer brand, it’s seen as an inclusive and supportive workplace, making it easier to attract new talent.

 

3. Redesigned Flexibility

The pandemic brought about an increase in remote work and nearly three years later, it’s still extremely popular. Many employers are offering hybrid options, flexible scheduling, and even four-day workweeks.

It’s essential for employers to balance their organizational goals with employee desires for workplace efforts to be successful and well-received. Although workplace flexibility is not feasible for all industries, employers can evaluate their own situations and consider ways to develop flexible arrangements.

 

4. Learning and Development Opportunities

Learning and development opportunities have become more popular in recent years. Employees who receive these types of opportunities are more likely to stay with the company and grow into different roles.

Upskilling or reskilling workers is one way that employers can find the workers they need for their in-demand roles. It’s often less expensive to reskill a current employee than hire a new one. Upskilling employees helps employers not only invest in workers but also in their own longevity and development.

 

Summary

Attraction and retention challenges are likely to continue this year, but employers can get ahead of the game by monitoring the trends shaping the changing labor market and driving current and prospective employees’ needs and wants. Download the bulletin for more details.