After reports that wages have grown at record levels between April and June this year, an employee engagement expert has warned that businesses need to think differently about remuneration to keep hold of their best staff.
Ifty Nasir, CEO and founder of equity management platform, Vestd, says companies who are unable to match rising wages need other ways to engage staff as the battle for talent increases.Ifty said: “News of rising wages is great for workers in the short-term, as they are facing higher mortgage and rent payments while everyday costs continue to put a strain on personal finances.“For businesses though, and particularly for startups and SMEs, this creates a significant challenge where they could face missing out on new talent or losing their best staff to competitors in a better position to offer higher salaries.“No one wants to get into a bidding war, so this news should be an important reminder to businesses that they need to offer something else in order to attract and retain the people that will power their success.”Cost-effective benefits to boost talent retentionIfty places high value on giving employees meaningful and “harmonising” benefits and believes that companies who focus on offering teams more of what they really care about can have a greater impact on their success.There are a number of things Ifty recommends businesses consider, including:Giving employees a slice of the action“Giving employees ownership and belonging within a company helps to keep everyone firing towards the same goals.“Setting up share and employee ownership schemes not only gives your teams a tangible reward for all their hard work, but also keeps them financially invested in the company’s growth and success. Our own research shows that this can improve loyalty and keeps people engaged with the long-term success of the company. If everything goes to plan, it’s also an opportunity to reward employees with life-changing sums of money.”Offering flexible working“Flexible working has moved far beyond a nice-to-have and has become an essential consideration for many employees. Whether you choose to be fully remote or implement more flexibility around working hours, a clear and consistent approach makes you stand out as an employer that cares about your staff and their wellbeing.“Research shows flexible working can lead to increased productivity and greater job satisfaction and could be a more important consideration than salary for many job hunters.”Thinking about wellbeing“Happiness at work is such an important consideration. No one wants to experience regular feelings of anxiety or stress about their job. Burnout is a regular factor behind people starting to look for new opportunities, so employers need to consider how they can support wellbeing before it becomes a major problem.“At Vestd, we have implemented wellbeing measures like meditation sessions and a £700 personal development budget. We also introduced a happiness questionnaire to check-in with everyone weekly and highlight areas that need fixing. This all helps people to feel valued and supported, which can often be more fruitful than more money alone.”Being transparent about the company’s position“Getting people more involved in your business’s journey can help them to better understand your objectives, as well as the rewards that could be on offer to them further down the line. Even if you aren’t able to offer salary increases right now, be open and honest about what could be available to employees in the coming months or years, once you have met certain targets.“Increased productivity comes from employees who feel trusted and empowered that their work is making a difference. Even a small token of appreciation today could go a long way tomorrow.”For more information about Vestd, visit www.vestd.com
