Key Strategies for Recruiting and Retaining Top Talent in a Tightening Labor Market

A new survey by Arthur J. Gallagher & Co. shows that a growing number of employers are revamping their benefits strategies to outmaneuver competitors and become destination employers.

As the U.S. unemployment rate drops, the battle to recruit and retain top talent has only intensified. Becoming a destination employer is not only crucial for the competitiveness of individual organizations, it also impacts the economy. According to the U.S. Department of Labor, there are currently 5.7 million job openings. If all of those positions were filled, the nation’s GDP growth rate could significantly increase.

The heightened need for strong benefits and compensation packages is a resonating theme throughout the 2017 Arthur J. Gallagher & Co. (Gallagher) Benefits Strategy & Benchmarking Survey, which collected data from 4,226 organizations across the U.S. In its fifth year, the survey examined how employers were using benefits and compensation to differentiate their organization in the war for talent. Notable findings from this year’s research show a growing emphasis on addressing the needs of the whole employee, integrating emotional, financial, social and career wellbeing with physical health.

Shift in Employer Thinking from Wellness to Wellbeing

Historically, wellness programs have focused on improving physical health as an extension of medical benefits. While reducing healthcare costs remains the main driver for offering a wellness program (60 percent), employers also cite investing in the organization’s culture (43 percent) and improving employees’ work experience and satisfaction (37 percent) as other top motivators. This broader, more holistic approach is also demonstrated by the increase in programs now covering financial wellbeing (34 percent), volunteer opportunities (28 percent) and community engagement (27 percent).

“This shift in thinking is one of the reasons we expect 70 percent of organizations will offer wellness programs by 2019,” said William F. Ziebell, President, Gallagher Employee Benefits Consulting and Brokerage. “When employers rebalance their priorities to include benefits like professional development and a workplace culture that promotes employee engagement and total wellbeing, they differentiate themselves in the talent marketplace.”

Leave Policies Play a Role in Employee Attraction and Retention

The need to appeal to younger workers with parental leave policies has prompted a discussion about supporting the total wellbeing of employees as they try to solve the work-life equation. Despite headlines showcasing generous maternity and paternity leave policies, a vast majority (64 percent) of organizations do not offer paid parental leave apart from short-term disability. In fact, only 22 percent offer this benefit to both mothers and fathers.

Retirement Readiness is Key to Higher Productivity and Engagement

Retirement benefits better equip employees for their financial future and give them peace of mind in the present. While it is encouraging that nearly half (48 percent) of employers use auto-enrollment in retirement plans to help employees improve savings, only 37 percent are measuring retirement readiness.
“During every life stage, employees encounter financial obstacles like paying student loans, buying a home, or paying for daycare,” Ziebell said. “These impact retirement savings and can result in employees needing to stay on the job longer than they’d like. An aging population often has higher healthcare costs and limits opportunities for younger employees to advance. So when organizations help their employees identify and manage these financial stressors, it often results in higher productivity and engagement.”

Survey Shows Importance of Taking a 360-Degree View

The 2017 Benefits Strategy & Benchmarking Survey underscores the importance of taking a 360-degree view of an organization’s benefits and compensation strategy, specifically through the lens of employee attraction and retention. Micro and macro-economic factors, such as the tightening labor market and shrinking candidate pool, make it even more imperative. As employers gain a deeper understanding of how these different elements work together, they can see more clearly how to align human resource and organizational strategies to drive better business results.


ABOUT THE BENEFITS STRATEGY & BENCHMARKING SURVEY

Gallagher Benefit Services, Inc., the employee benefits consulting and brokerage operation of Arthur J. Gallagher & Co., developed the Benefits Strategy & Benchmarking Survey to provide employers with insights into how their peers are addressing benefit and human capital challenges. The 2017 survey, conducted from January to March of this year, aggregates responses from 4,226 organizations across the U.S. Additional survey results can be found at www.ajg.com/NBS2017.

ABOUT ARTHUR J. GALLAGHER & CO.

Arthur J. Gallagher & Co. (NYSE: AJG), an international insurance brokerage and risk management services firm, is headquartered in Rolling Meadows, Illinois, has operations in 33 countries and offers client-service capabilities in more than 150 countries around the world through a network of correspondent brokers and consultants.

 

Improving Talent Attraction and Retention

By:  Sarah Craft

Detroit Drives Degrees (D3) has three focus areas: Allowing regional residents improved access to a postsecondary opportunity, improving success within those programs, and retaining this talent once they’ve completed their certification, as well as attract new talent to the region. When we say “talent”, we’re talking about people with any sort of postsecondary credential, including a professional certification, and degrees including associate, bachelors and beyond.

Detroit Young Professional Mixer

We’re working with incredible partners throughout the region to reach our goal of increasing the number of people with postsecondary degrees to 60 percent by 2025. Detroit Young Professionals (DYP) is one of those partners. DYP is dedicated to strengthening the next generation of regional leaders by providing professional development, civic engagement and networking opportunities. Professional organizations like this do an incredible job getting local people connected to opportunities, as well as providing an effective welcoming mat to area newcomers.

D3’s talent working group is doing research to better identify strengths, challenges and opportunities in regionwide talent attraction and retention. We’ll be promoting a broader talent survey in the next week or two, but we’ve also been looking at national models, research and facilitating one-on-one and focus group discussions to better understand talent needs.

DYP serves on our working group, and we recently attended one of their networking events. With more than 200 people present, we collected useful narratives and perspectives on individuals’ experiences related to talent retention and attraction.

Why Here imageThe biggest takeaway was that region’s opportunity for making an impact and the spirit of our people is what seems to matter most. Whatever possible improvements to talent retention and attraction we come up with will be sure to focus on people, equity and relationship building.

Here are highlights from questions we asked at DYP:

Why do you live in the region?

  • Family
  • To be part of positive changes
  • The spirit of Detroiters
  • Deep roots and pride
  • Career
  • It’s a cool place to live

What are your community’s greatest assets?Best Assets

  • People
  • Activities
  • Walkable communities

How can people get connected to your community?

  • Spend time (and money) at local
    businesses
  • Get involved with a local organization
  • Get out and about to talk to neighbors, attend networking events or joining a recreational sports league
  • Through Facebook, Instagram, Twitter and other social sites like Meetup

Unfortunately, many people weren’t sure how to encourage others to get connected to their community, especially when people lived in smaller suburban communities like Romulus or Roseville.

For residents, new to the region or to those who left for a while and recently returned, we asked:

What made your transition to the region easy?

  • Having a friend, colleague, family member or neighbor as a guide
  • Being curious and open to new experiences
  • Finding a community to be involved in, like the music scene, volunteer opportunity, or an interest-based networking group
  • Looking through social media to find out about events

What made your transition hard?

  • Finding new friends
  • Finding a place to live
  • Outside perceptions of the region, especially related to safety
  • Adjusting to the quality of life, like not having regional transit or the lack of walkable communities

What could have made your transition better?

An easier way to:

  • Make friends and meet new people
  • Find things to do, based on interests or personal recommendations
  • Get information about the region, like where to live based on interests and lifestyle

Stay tuned for our upcoming talent survey and opportunities to get involved in our work. For questions, comments, or ideas, reach out to scraft@detroitchamber.com.