The War For Talent: Could It Impact Your Savings and Investments?
Recently news broke about an American company, The Hut Group, who wanted a DJ-led celebration as their employees returned to work. Then, the Accountants, PwC started offering staff a £1,000 bonus to entice staff back to the office. They even suggested it could be used for new workwear (wishful thinking perhaps?), commuter bikes or gym membership. Insurance company Phoenix Group also jumped on the bandwagon. They opted, though, for “safe socialising” events for anyone who’s maybe a bit rusty. [see article].
Everywhere you look, there is a new emphasis on employers making concerted efforts to persuade staff to return to work. But what about recruitment? Are the same inducements being offered there? The simple answer is ‘yes!’
Times are a-changing!
We’ve written before about how the pandemic threw the work/life balance under the spotlight. We’ve also recorded the various difficulties seen in certain sectors to recruit new staff. So, it comes as little surprise that companies have had to become increasingly creative with the recruitment packages they offer.
Flexible working now needs to be a given. Reduced hours are becoming a ‘popular’ feature, and working from home a matter of course. Yet, still, companies are struggling to recruit, with many businesses being forced to operate for shorter hours.
To add to their woes, the CBI (ever the optimists) openly stated that staff shortages may “last for two years.” Throw in extra complications like staff re-assessing what they want from work and life following the pandemic and the inevitable loss of some staff post-Brexit, and it is not surprising that some employers fear losing the “War for Talent.”
The War for Talent
The “War for Talent” – it’s an evocative phrase, isn’t it? But, at the moment, it appears to be being fought more fiercely than ever. Employers need to be on guard for the changing preferences of potential employees and must adjust accordingly. They now need to think beyond an appealing salary and bonus package.
In fact, according to a recent survey, 45% of respondents ranked team, people and culture as most important, followed by 39% who opted for flexible working. A significant number also favoured working for a small to medium-sized company, where they were “more than just a number.” Unsurprisingly, given the number of new businesses started in lockdown, one-in-five wanted to find a way of going freelance or becoming their own boss.
Could the “War for Talent” hamper the UK’s economic recovery?
The ’War for Talent’ poses lots of interesting questions. And, in the current economic climate, the overriding one is whether it could impede the UK’s economic recovery. In turn, could that impact growth, stock markets and your savings and investments?
Well, the answer to the first question is yes. We have already seen evidence of how the war for talent can impact the UK’s recovery. If you want a very simple illustration, then it is easy to see what a shortage of lorry drivers can do to supermarket shelves.
Whether it will impact stock markets and investments is rather more tenuous. There are far more factors impacting world stock markets than an individual company’s problems with hiring. What is certain, though, is that business owners and directors face challenges they have never faced before and changes in workplace practice that have been rapidly accelerated by the pandemic.
How they deal with these challenges will go a long way to determining the success of the company they own or manage. It is certainly something that we will be keeping a close eye on.
Written by Chris Page
Chris is an experienced financial service professional who joined the business in 2013, as a result of his hard work and dedication he was made a director of the firm late 2014.