5 HR Negotiation Methods to Attract the Right Talents During the Great Resignation the
In recent years, there has been a growing trend of employees quitting their jobs, leading to many labelling this unusual period in history as "The Great Resignation". This has led to a shortage of talent in many industries, and employers are now scrambling to find the best employees to fill their open positions. One of the best ways to retain and attract talents in the past was incredibly straightforward, simply offer a competitive salary and benefits package! However, talents are still resigning in flocks despite being offered higher salaries in many cases. In fact, many talents simply don't have the motivation to work for someone anymore! So why are employees resigning in such high numbers? The answer is simple, they don't feel valued at their jobs! A recent study found that employees who don't feel appreciated are twice as likely to resign compared to those who do feel appreciated. In today's society, people expect more than just a paycheque, they want to work for an employer who values them and their contributions. This simple act can be the difference between an employee who is motivated to come to work every day and one who is looking for any excuse to hand in their notice.
To attract the right talents nowadays, employers must convince talents that they will gain much more than simply money, and that they could even influence organizational decisions with the work they will be doing. Simply put, employees want to be heard and valued in organizations they work for. Sounds easy? Think harder. Quality talents usually have a few offers at hand, not to mention the small time window in between the interview process that organizations have to showcase their worth to the talent. Think about this - isn't it somewhat unrealistic to have to convince someone that they will be valued for what they do before they have even started work? Well, to pull this off, HRs and employers must employ a few negotiation tactics to win the hearts of quality talents. Ultimately, the goal is to show candidates that the organization is committed to their success. By doing this, employers can increase the chance of attracting and retaining top talent.
In this article, we will discuss 5 of the most effective negotiation methods to help you attract the best talent during the great resignation.
1. Offer a competitive salary.
Even though money isn't the most important thing nowadays from most candidates' point of view, umpteen talents have still reported the lack of remuneration and benefits as one of the reasons they quit.
Employers/HRs should not just use the open market to find out what others are paying, but they should understand the salary that the candidate thinks he/she deserves. In negotiations, most people are mistaken about the main priority. The main priority isn't about what you think is fair and what is not, but rather what the other party thinks is fair or unfair, otherwise you will not get what you want, which is the ultimate goal of negotiations (assuming you are a rational negotiator).
In practice, it is not unusual for employers/Hrs to feel that they are offering a competitive salary by comparing their offer to the market rate, but that may not be the "right" amount of remuneration that candidates think they deserve - it could be more or less than the market rate. In most cases, due to the shortage of talents in the market, they have much more bargaining power than in the past, hence they are likelier to ask for more than what the market rate is. If this indeed is the case, the question employers/HRs must ask themselves is, are they willing to offer a remuneration package that is higher than the market rate? Remember, what employers/HRs think is fair isn't the same as what candidates think is fair. In our experience, the cost of making someone redundant and having to recruit new talents is often more than simply offering more money for existing employees. If you want your organisation to be known for attracting and retaining the best talent, consider offering a competitive salary. This could even counterintuitively lower your recruitment costs in the long run, as current employees and job seekers are likelier to automatically refer more talents to you if you have a good reputation as an employer. After all, it takes money to make money.
While it is true that some employers may be willing to pay more to keep their employees happy and to avoid the cost of recruiting new talent, this is not always the case. In many instances, employers may feel that they can save money by making their employees redundant and then hiring new staff. This is often more expensive in the long run, as current employees and job seekers are less likely to refer new talent to an organisation if it has a reputation for being an ungenerous employer. It is also worth noting that offering a competitive salary is not the only way to attract and retain the best talent. Other factors, such as company culture and employee benefits, can also play a role in this.
2. Offer perks and benefits, especially remote working and flexibility.
In order to attract and retain top talent, offer perks and benefits such as Remote Working or Personal Learning & Development plans.
In this day and age, especially after COVID, many Millenials and Gen-Zs value work-life balance more than money - they are used to working from home and don't see the point of having to go to the office 5 days a week. In fact, employers/HRs should arguably grant flexibility in how, where, and when employees work, as this is shown to improve employees’ productivity and motivation. Practical measures such as access to common areas for rest and relaxation, or meeting spaces for collaboration can also form part of the flexible work package, helping create a more attractive working environment to nuture top employees.
Having said all this, you’ll need to tailor your benefits package to the specific needs of your target employee base. Again, negotiations are not just about what you think, but more so about what the other party thinks. Consider offering things like competitive salaries, gym memberships, flexible working arrangements, private healthcare, and more. Some businesses even provide food and coffee, free parking, and staff perks such as team-building events. You don’t have to offer everything on the list. On top of that, you can also try starting relationships with external talent sources/agencies or freelancers who may be interested in long term engagement.
3. Offer training opportunities.
Offer training opportunities that help employees develop new skills and progress in their careers. This will show that you are committed to invest in your employees’ development, which is a key driver of employee engagement and motivation. It will also make your organisation more attractive to prospective employees.
In order to extract the best outcomes from negotiations, one should aim to win the hearts of the other party by offering a combination of long term and short term benefits. In a talent recruitment context, employers/HRs must give realistic hope to talents that their long-term career progression needs are taken care of through training opportunities on offer. Again, even though immediate remuneration and flexible work are extremely important, quality talents often look at things over a longer period. They are not interested in just immediate gains, but more significantly, future gains.
Hence, we always recommend employers/HRs to categorize their offers into short term and long term benefits, and make these clear to prospective talents, so that they feel that employers/HRs genuinely have their best interests at heart. Remember that negotiations are not simply conveying what you want to convey - successful negotiators can always communicate their offers in a language that the other party can understand.
4. Review job descriptions to create a clear career path for employees.
Examining and rectifying any issues with the way staff members’ responsibilities are distributed can help employees gain greater clarity on their roles within the organisation, thus improving motivation and commitment levels within the workforce. Reviewing individual and team objectives will lead to more effective communications of job roles and responsibilities with all relevant parties.
5. Offer support in reducing stress and anxiety levels
In any given negotiation, there are a few key things to keep in mind in order to be successful. First, you need to have a clear understanding of what you want to achieve. Second, you need to be able to listen to the other side and understand their needs and wants. And third, you need to be able to find common ground and build rapport.
What you want to achieve as an employer/HR is to not just attract talents, but retain them. Offering an employee benefits package that incorporates stress and psychological support for employees can often convince high-quality talents to join an organization. Nowadays, many talents simply do not want the added stress of work in return for a mediocre increase in salary and benefits. To attract the best talents, especially for mid to senior level positions, employees must show that they value employees by showcasing genuine concern about employees' mental health.
