The supply of talent is low. The demand for talent is high. Nationally unemployment is at 5.5% and locally here in Indianapolis we have a rate of 4.3%. Wage pressures are forcing employers to increase rates to remain competitive.
Here are three ways to attract and retain top talent given the current employment landscape.
1. Pay for Performance – Increase wages without increasing costs. Link employee effort to performance and results. Not unusual for sales people, CEOs, etc – why not expand this to your hourly workforce to allow employees the opportunity to earn more. This will help reduce turnover and improve productivity.
2. Employee Engagement – Provide workplace flexibility, real-time feedback, coaching and mentoring, a job that aligns with their personal values, and create a "cool" work environment. This can be accomplished even if you operate a warehouse, work inside a dental office, or staff up a call center. Feeling connected with work does matter, try being a culture that happens to have a company.
3. Employee Recognition – Several studies note that money or compensation is not always the best motivator. While I would disagree for hourly employees – engage your workforce with Employee of the month, spot awards for safety or work activities that exhibit company culture, and breakfast with the CEO, etc.
