A recent
report by Economic Times highlights that the changing work culture is causing a
gap between employer and employee expectations. Companies face mismatched
salary expectations, required skills, and cultural fit issues.
Changing
work culture is bringing about a growing gap between employer and employee
expectations in hiring and retention.
Companies
now are finding it difficult to find and retain talent due to mismatched salary
expectations, unavailable required skills, cultural fit issues, competition,
and the demand for flexible working arrangements.
Globally,
these challenges are even more pronounced. Nonprofits and FMCG companies report
the highest levels of difficulty. On the employee side, there is a notable
openness to new job opportunities, with many prioritizing flexibility and
career progression,
underscoring
the evolving dynamics in the job market.
However,
the numbers for India were lesser than for the global average and the Asia
Pacific average. At a global level, 40% found it difficult to retain employees.
Similarly 50% found recruiting challenging. The challenges did not see any
major differences based on the size of the company.Non profits were among the
top sector finding it challenging to both hire (59% and to retain employees
(53%). FMCG companies surveyed also shared that 51% found recruiting difficult
and 54% found retention a challenge.
The gaps that need to be
addressed
Employers and job seekers both
look at flexibility, higher salaries and career progression as the key tools to
attract employees but at the same time, there is a mismatch between the groups.
Specially, job seekers value company culture and ethics per the report more
than companies realize whereas companies over index on the importance of brand,
incentives and rewards.Meanwhile, for retention, career progression and
competitive salaries are critical, as agreed by both sides. But employees focus
more on role changes and flexibility. Employers on the other hand feel
recognition, manager relationships are tools which rank higher. To stem the
gaps, there should be practical actions such as clear promotion paths, support
role transitions and align retention strategies with real employee needs. There
are also generational differences in these expectations. While work life
balance is a common expectation across age groups, for those in their 20s to
30s prioritize career progress and competitive salaries. People in their 40s
rank career progress higher than gratitude, recognition and appreciation while
it flips for those in their 50s.What is clear is that competitive pay alone is
no longer enough with 48% willing to refuse a promotion even with a salary
increase, to prioritize wellbeing. This figure was at 41% for Indian
respondents. The report also highlighted other gaps from discrimination and
biases employees face at work with a low level of inclusivity which raises the
urgency for diversity and inclusion initiatives.
On the positive side, 47% of
the women in India mentioned they are happy with initiatives to address gender
gaps. Last, but not the least AI is being seen with mixed reactions with 60% of
the respondents feeling it will impact their long term career plans.
Read more at:
https://economictimes.indiatimes.com/jobs/hr-policies-trends/beyond-the-paycheck-what-employees-look-for-and-how-employers-can-fix-hiring-and-retention-gaps/articleshow/111129060.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst