In 2023, we have witnessed a rise in employee retention following significant shifts in the HR market throughout 2022. What factors have driven this heightened engagement, and will it persist?
HR Market Update
1. Uncertainty in the Market The onset of 2023 was marked by substantial technology sector redundancies, particularly in talent acquisition. After a rapid expansion in 2022, many companies scaled back recruiting due to heightened uncertainty. HR candidates remained keen on the right opportunities, yet they placed their focus on career progression, organizational culture, and the hiring manager. Candidates displayed a willingness to remain with their current employer unless a position aligned with their expectations. HR Market Update
2. Flexible Work Arrangements
The pandemic expedited the adoption of remote and flexible work models. Granting employees the autonomy to balance work and life has amplified job satisfaction, thereby fostering longer tenures. Although sectors like Banking & Financial Services and manufacturing are transitioning toward 3-4 days in-office, they still prioritize flexible working to uphold employee engagement.
3. Emphasis on Work-Life Balance
HR teams have increasingly prioritized employee well-being. Striking a harmonious work-life balance has evolved into a fundamental expectation. Companies championing work-life integration through wellness initiatives and adaptable scheduling cultivate loyalty and unwavering commitment.
4. Job Stability
Growingly, employees seek job stability. Previously, candidates shifted roles to enhance their remuneration and gravitated toward start-ups. More recently, candidates seek organizations boasting a robust employee brand, sustained growth, and internal career advancement opportunities.
5. Compensation & Benefits
In 2023, pay raises have moderated from the previous year's average of 20-25%. Diminished demand for senior-level HR hiring contributed to this trend. However, companies actively recruiting have offered top-of-market compensation for premier HR talent. For other candidates, organizations have chosen patience in awaiting the right fit, elongating time-to-hire and tempering average increases to 8-15%.
With mounting market confidence and progressive HR hiring throughout the year, a slight reduction in retention levels is anticipated as pay raises continue to gradually ascend. Companies and HR teams will persist in prioritizing health and well-being, striking a harmonious hybrid work balance, and fostering a fitting culture to effectively attract and retain the ideal personnel.
Enjoying this post?
Don't the miss the next one
Subscribe below to get our latest product updates and blog posts.
Comments