This is especially true in typically high-salary, high-intensity roles in the financial and professional services sector. In these roles, employers can be tempted to say that pay is sufficient compensation for an individual or group to sacrifice their wellbeing, time, and maybe even aspects of their personal life to meet targets. But in a world where employees value wellbeing, life outside work and opportunity in addition to salary – especially the youngest generation in the workforce, Gen Z – there needs to be a rebalancing of the 'give and take' when acquiring and retaining top talent.
An April 2024 report from employee benefits provider Unum highlighted stress as a primary factor influencing UK employees’ decisions to quit their jobs. According to the report, stress ranks just 1% below salary (79%) on the list of issues affecting employee turnover in the workplace. This statistic is a stark reminder that while competitive pay is essential, it is not the sole determinant of employee satisfaction and retention.
Read more: Work must work for all ages and generations
The concept of wellbeing in the workplace encompasses various aspects, including mental health, work/life balance and a supportive work culture. The same Unum report highlighted that less than half (49%) of employees agreed that their organisation has the necessary practices and services in place to effectively support their mental health. This gap in support systems is a significant concern, as it directly impacts employee morale, productivity and overall job satisfaction.
Moreover, the World Health Organisation estimates that 12 billion working days are lost every year to mental health issues such as anxiety and depression. This figure doesn’t only underscore the economic impact of neglecting mental health, it is useful for employers who may be unknowingly hindering productivity and profits.
Read more: Health benefits most valued by younger workers
For the first time, organisations today have five generations working together. Each generation values different benefits and working practices according to their personal circumstances. Organisations should be prepared to flex, where possible, to accommodate this.
Law firm Cripps’ June 2024 report, Beating bias: Fuelling female leadership, showed that nearly a fifth (19.8%) of senior female businesswomen saw lack of access to flexible working as a barrier to progressing to senior leadership positions.
Read more: Multigenerational workforce suffers from collaboration difficulties
For employers, rebalancing should take the whole package for talent into account. Instead of trying to compete by hiking salaries alone, employers may wish to adjust salaries alongside more reasonable and achievable targets, alongside other employee benefits, such as:
- Comprehensive benefits packages: Offering benefits that go beyond the basics, such as mental health support, wellness programmes and flexible working options can make a significant difference in employee satisfaction.
- Purpose: Having a clearly stated purpose, how individuals and the organisation support the community that they work in, through volunteering, pro-bono, and charity fundraising, and most importantly being provided with the encouragement and time to participate.
- Open communication: Creating an open dialogue about stress and mental health can help de-stigmatise these issues and encourage employees to seek help when needed. Regular check-ins and feedback sessions can also provide valuable insights into employee concerns and areas for improvement.
- Work/life balance: Encouraging a healthy work/life balance through policies such as hybrid working, flexible hours and adequate vacation time can help reduce stress and prevent burnout.
- Training and development: Providing opportunities for professional growth and development can enhance job satisfaction and loyalty. Employees who feel they are growing and advancing in their careers are more likely to stay with their current employer.
- Recognition and rewards: Regularly recognising and rewarding employees for their hard work and contributions can boost morale and motivation. This recognition can take various forms, from monetary bonuses to public acknowledgment and career advancement opportunities.
The future of talent acquisition lies in recognising the importance of employee wellbeing and striking the right balance between pay and employer expectations. By doing so, organisations can build a resilient and dedicated workforce that drives long-term success.
By Emma Richardson, director of people and development at Cripps
