- Shift to candidate’s market as increase in job opportunities and security encourage workers to consider next career move
- 54% of employees haven’t received a pay rise in the last 12 months, with most incentives given through other means
- 61% of HR businesses worried about losing talented individuals from organisations but 62% have no talent management strategy in place
The economic landscape may be improving, but with over 44% of HR workers setting their sights on a new job in 2014, businesses need to invest in their workforce if they are to win the race for talent – according to recruitment specialist REED.
With pay remaining static and workers reporting fewer benefits, a new report which canvassed the views of 2,500 employers and employees reveals that it’s time for businesses to take action.
Attitudes towards rewarding talent
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The REED 2014 Salary and Market Insight report shows that while the UK’s workforce is stable with more than three quarters (80%) of those working in HR feeling secure or very secure in their roles, up 5% on 2013, 61% of employers are worried about losing talented individuals from their organisation.
Throughout the past 12 months, REED has been reporting on employment trends across the UK which has shown that a candidate’s market is reappearing, with the number of job opportunities up 28% year on year as the economy continues to improve. Despite this, only 38% of businesses have a talent strategy and none of the organisations questioned had changed their approach or put new incentives in place to support workers in this competitive environment.
With 54% of HR employees not receiving a pay rise in the last 12 months, and businesses are being forced to fill the gap with training and other incentives if they are to keep their top talent according to REED.
However, year on year, employees reporting to receive training, pay rises, bonuses and staff entertainment are all down from last year.
Attitudes towards attracting talent
The report also highlighted a shortage of skills with more than a third (46%) of HR managers saying they have a skills gap in their organisation and 86% saying this gap is having a negative impact on their business. What’s more, 1 in 10 organisations (13%) admit they do not do a good job of attracting talent to their organisation.
Tom Lovell, Group Managing Director at REED, comments: “Despite lacking rewards, the majority (79%) of HR employees are satisfied or very satisfied in their current role. However, as the economy continues to strengthen and job opportunities rise, the competition for quality candidates will increase, and businesses can’t afford to lose out.
“Despite a need to attract and retain talent within their organisation, many businesses aren’t investing in their workforce through pay or their benefits, such as training, and his will impact on the overall satisfaction rating for their workforce. Businesses need to invest in both their employee brand reputation and talent management to attract people with the right skills to their organisation and hold on to employees with the right talent.”
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