It’s a paradox faced by many HR departments and hiring managers. You’re told to employ more staff–but with less money available to persuade them. On top of that, in many regions and roles, there’s a shortage of people with the right skills in the first place—a supply-and-demand issue that typically means companies need to offer more money, not less.
In the US alone, the employee quit rate increased by 13% between December 2019 and 2022, according to the country’s Bureau of Labor Statistics. And our latest research of 4,000 professionals across the US and UK revealed that nearly half of employees are now willing to switch jobs within months as opposed to years. One reason: while it’s true that companies are raising salaries across the board, they’re still below inflation rates.
Thinking beyond employee pay
The good news is that pay isn’t the only thing that motivates a workforce. Our data shows, for example, that over 60% of millennials say they would be more loyal to a company with a good sustainability policy. “You have to offer employees something more than just the financial exchange,” says Ron Seifert, a Korn Ferry Senior Client Partner in its rewards practice.
Seifert advises that rather than focusing on wages, firms should emphasize their other benefits, such as the flexibility around working location and hours that many candidates now want. Our research reveals that 64% of employees say going back to the office will have a negative impact on their mental health.
An even more innovative solution, Seifert adds, would involve firms offering to relocate potential remote-working talent who are interested in moving out of big cities to smaller towns and rural areas due to the rising cost of living. “That would be super creative. It’s companies asking, ‘Where do you want to work?’”