Unprecedented levels of reward and benefit will be offered to attract and retain talent in 2022

Unprecedented levels of reward and benefit will be offered to attract and retain talent in 2022

Our survey of 150 large companies showed that the top two strategic priorities for HR teams in 2022 are to attract top talent (score 9.51) and retain existing talent (score 8.81).

In the survey, respondents were asked what they already have in place to attract and retain talent in their business, and, what they plan to implement in the next 12 month, or, would consider implementing.

The research suggests that companies may turn to increased levels of monetary reward in?recruitment?efforts. To attract talent, 17% said they already pay above market pay and almost half (49%) would consider it. Whilst more than a fifth (21%) said they already pay a sign on bonus and 37% said they would consider bringing one in.

To retain talent, over half (52%) are considering the unprecedented move of paying their employees above market average pay increases, 9% said they will implement this in the next 12 months and 14% said they already have this in place.

The research also suggests that businesses may start to use retention bonuses as a tactic to retain talent; 28% of businesses said they already have this in place, 4% are implementing it in the next 12 months and 45% said they would consider it. More than a third (34%) said they would also consider above market bonuses.

Companies also appear to recognise that in the ‘war on talent’ monetary reward alone is not enough to attract and retain employees.

70% of respondents said they already implement and promote their flexible working practices in an attempt to attract new talent, a further 16% are looking to implement this in the next 12 months and 16% said they would consider it. In addition, only 7% of those questioned said they would not consider additional wellbeing benefits as part of their plan to attract new talent. 50% said they already use additional wellbeing benefits in their strategy to attract new talent, 14% are implanting this in the next 12 months and nearly a third (31%) would consider it.

Enhancing development appears to be a key strategy businesses are implementing to retain the best talent. 54% said they already have this in place, more than a quarter (28%) plan to implement it in the next 12 months and 20% said they would consider it. Notably, developing leaders was the fourth highest strategic priority for HR teams in 2022.

The research also suggests businesses believe promoting their commitment to environmental, social and governance (ESG) issues is key to attracting talent. Over half (56%) of companies already have this in place, whilst 16% are planning to implement this within 12 months and 24% would consider using it.

Outlook 2022 has illustrated an astonishing shift in employee strategy amongst the UK’s biggest businesses. Over half of the companies we surveyed said they will be looking to increase their headcount in 2022, which means the talent marketplace is only set to get feistier. It is encouraging to see more than half have already shared their commitment to ESG as part of their strategy to attract and retain talent. However, employees have become increasingly cautious about joining and staying in workplaces that pay lip service to ESG efforts. Leaders must ensure these pledges are not empty.