DIVERSITY, INCLUSIVE CULTURE & GREAT WORKSPACE ARE VITAL IN TODAY’S TIGHT LABOR MARKET

More Americans than ever quit their jobs last year in the “Great Resignation” that shocked economists and CEOs alike, when 4 million American workers started quitting their jobs every month.  Others describe the phenomena as the “Great Discontent” where employees are rethinking their relationship to work and how it fits into their lives.

And while businesses face staggeringly high quit rates and record high numbers of unfilled positions,  a Gallup Poll last summer found that 48% of Americans who are working are actively job searching or watching for job opportunities. New research from Pew Research Center found that low pay, a lack of opportunities for advancement and feeling disrespected at work were the top reasons why Americans quit their jobs last year.

Employment experts sense this recent wave of attrition is different than previous tight labor markets. Employees are not just looking for a bigger paycheck, many are leaving jobs to take on new and very different roles.  Others have been operating under extreme circumstances for extended periods and are taking their time getting back into the labor force as they assess what they want from their work/life balance.

To be competitive in the competition for talent, employers must offer higher compensation and better benefits – but that’s just the ante.  To be in the game for highly skilled employees, employers must also be willing to offer more flexibility, an inclusive culture and sense of community.

While office design and recruitment aren’t often discussed in the same sentence, great office space is a major factor in attracting and retaining talent.  A recent survey found that 72% of job hunters decide if they want to work for someone within 30 seconds, based on their first impression of the company’s workspace,  while a CBRE survey found that 69% of candidates said they would be willing to give up other benefits to work in a well-designed space.

After a hiatus from being in-office, employers cannot simply unlock the door, clean up the cobwebs and expect new or even existing employees to jump back into what worked over two years ago.  In today’s competitive job market, an office space that amplifies the company’s brand and personality may be the tipping point in landing top recruits.

“Well-designed office space that reflects a company’s values contributes to a stronger company culture.  And that’s near the top of the list for most job seekers today,” said Todd Greenwald, Compass Properties Executive Vice President. “Job seekers are no longer impressed by ping-pong tables, kegerators or other whimsical workplace amenities.  First and foremost, today’s employees want a safe and healthy environment.  And they want amenities that help them do their jobs; things like consistent, high-speed internet, touchless 24/7 building entry, flexible work areas, green space and food/package delivery.”

In recent years, young job seekers have increasingly prioritized personal values in deciding where to work.  For many job seekers today, a diverse, equitable and inclusive workplace is not just a preference, it’s a requirement.   Recent data appears to reflect this. According to a September survey from Glassdoor, 76 percent of employees and job seekers said a diverse workforce was important when evaluating companies and job offers.

In marketing and in recruiting, companies need to be aware of their “employment brand:” the market perception of what it’s like to work for an organization and the image that prospective, current and past employees have of the company’s employment experience.  Having a great employment brand can fuel recruiting with testimonials, posts and word of mouth marketing that highlights your company culture, purpose, compensation, benefits, work-life balance, location and office space.

You can get a sense of your employment brand on websites such as Glassdoor and Indeed, which can highlight both the negatives and positives of your employment brand.  You may also want to consider doing  employee experience surveys that relate to how employees feel about working for your company, and a deep dive into you current hiring process, looking at it from the candidate’s point of view.  How long is the process? Are the lines of communication open and accessible?   What does the process say about your company?

The impact of the pandemic has provided an inflection point for many. The lines between personal and professional lives became blurred for many people and caused them to rethink their jobs.  One result is that many employees are now more belief-driven and motivated not just by salaries and benefits, but by social and personal values as well.

“To be an employer of choice in this environment, you need a transparent company culture where information is freely shared for the good of the organization and its people,” Greenwald said. “Greater transparency creates and builds trust with employees, improves morale, and can help you recruit and retain the talent that drives your organization.”