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April 11, 2023

How to Attract Employees on a Tight Budget

You need to hire workers, but your company’s budget is limited. Sound familiar? After high turnover rates, many businesses are finding themselves short-staffed. At the same time, economic uncertainties mean they need to be financially conservative, and this makes attracting top talent more difficult. The good news is that there are strategies you can implement to attract employees on a tight budget.

Competition for Talent Is Fierce

According to Robert Half, 58% of companies plan to hire for new roles in the first half of 2023, and 39% plan to hire for vacated positions. Only 3% plan to freeze hiring, and 0% plan to eliminate positions. The survey also revealed that finding qualified workers has become increasingly challenging. Managers say hiring for a position can now take up to 11 weeks, whereas in 2021, managers said it only took up to seven weeks.

High turnover rates may continue in the foreseeable future. Robert Half also found that 46% of workers plan to seek new jobs in the first half of 2023, and 41% plan to seek new jobs in the second half of the year.

Experienced workers are in high demand, and they know it. As a result, companies need to do everything they can to make themselves attractive employers. Providing a high salary is one strategy, but due to tight budgets, it may not be a practical option right now. Hiring managers will therefore need to rely on other tactics. Here are some ideas:

1. Foster a Positive Work Environment

Employees spend a significant portion of their at work, so it makes sense that employees want to work in a pleasant and rewarding environment.

  • Weed out toxicity. According to FlexJobs, 62% of people cited a toxic company culture as a reason for quitting, making this the most common reason. Conduct employee surveys and exit interviews to determine whether there’s a problem, and if there is, take steps to address it.
  • Create an inclusive space. According to Gallup, 42% of workers say whether an organization is diverse and inclusive of all types of people is important to them when they’re considering a job offer.
  • Promote volunteerism. Community involvement can be rewarding, so consider offering volunteer days and organizing company-wide volunteer activities.
  • Recognize your workers. According to Gallup, workers who do not feel adequately recognized are twice as likely to say they plan to quit in the next year.
  • Support mental health. There are many ways to do this, such as providing mental health days and fostering the kind workplace where mental health issues and needs are not stigmatized.

2. Promote Flexibility and Work-Life Balance

According to BCG, a lack of financial compensation was the top deal breaker for job seekers surveyed, but work-life balance came in at a close second. A flexible location or schedule also ranked high in the list of absolute must-haves, coming in at number four.

In recent years, workers have started to prioritize flexibility. According to Bankrate, 55% of workers say the ability to work from home or have a flexible schedule is more important now than it was before the pandemic.

  • Create reasonable workloads.
  • Consider remote or hybrid options.
  • Consider flexible schedules when possible.
  • Encourage workers to use their time off.

3. Provide Perks That Don’t Cost Much

Even inexpensive perks can be attractive to job seekers.

  • Provide employee discounts. You can offer discounts for your own products or services, or you can partner with other businesses to provide discounts. For example, see if your partners or vendors can provide a discount.
  • Consider making your office pet friendly. This may not work. For example, if you have employees who are allergic to dogs, bringing dogs to work could pose a health risk. However, if everyone is on board, this may be a popular option.
  • Think about relaxing the dress code. Many workers appreciate being able to wear the clothes they’re most comfortable in.
  • When in doubt, opt for free food. For example, if you have monthly meetings, consider catering the meeting with affordable lunch options. You can also supply snacks and beverages in the breakroom.

4. Support Career Advancement

Gartner says that only 25% of employees are confident about their career at their current organization. If you want to hire and retain talent, you need to show them they have a future at your company.

  • Promote from within.
  • Provide mentorship opportunities.
  • Provide training and reskilling opportunities.

5. Offer a Wide Selection of Voluntary Benefits

You can offer many benefits without actually paying for them. Voluntary benefits are ones that employees can choose to either reject or accept. Although the employer can cover some or all of the premium costs, premiums are often paid for by the employee through payroll deductions. Even though the employee is covering the full cost, this is an attractive option because the employee enjoys group rate discounts and easy enrollment with little to no underwriting.

Life insurance, disability insurance, vision insurance, dental insurance and many other insurance policies can be offered as voluntary benefits.

Do you need help crafting a cost-effective benefits package that will attract employees on a tight budget? Heffernan Insurance Brokers can help. Learn more.

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