Why flexibility is the key to attracting and retaining exceptional finance talent
The recent PwC Pulse Survey confirmed what many CFOs and finance professionals already suspected: Australia is in the grip of a two-pronged talent shortage
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On the one hand, organisations are finding it difficult to attract and hire enough people, with almost half the survey respondents (48%) reporting this as the biggest risk to their business achieving its growth targets. While on the other, two in three workers are looking for a new job, meaning an equally significant challenge lies in retention.
Is it time to rethink rewards strategies amidst a shrinking talent pool?
Clearly this set of circumstances represents very real challenges in an already testing environment. But what became abundantly clear when some of Australia’s top finance leaders gathered online recently for our latest G100 webinar, is that there is also enormous opportunity. Not only do proactive organisations have the potential to increase their ability to attract and retain the best employees by crafting competitive, people-centric employment value propositions (EVPs), but they also stand to gain from increased productivity, enhanced culture, and improved workforce wellness.
The key: Balance
Recent research undertaken by PwC shows that the top three career priorities of employees are in a state of flux – pay remains number one, but is now followed closely by a combination of health, well-being, and work-life balance; and rounded out with future-focused skills development. Flexibility, care, choice, and autonomy are more highly valued than ever, and it’s clear employees are no longer willing to sacrifice holistic wellness – that is, financial, emotional, psychological and physical – for salary alone.
Every leader understands, however, that there is a very real tension at play right now, and it’s going to take courage and innovation to balance this desired flexibility with positive organisational culture and a robust work and learning environment.
The question is: how can finance leaders strike such a balance – assuring both existing and new employees that they are in the right role, with the right employer, while also avoiding permanent, cost-based implications in uncertain economic times?
Unlock your competitive advantage: Embrace the reality of today’s workforce
The status quo has shifted and will do so again; pretending otherwise is simply a shortcut to even higher staff turnover rates. Organisations that continue to force staff back to the office full-time, for example, are losing people at a faster rate than companies that offer flexible or hybrid arrangements. Notwithstanding that hybrid working is here to stay, leaders and managers need to find ways to ensure that their teams feel like they belong, which include seeing each other in person. It just doesn't have to be in the office. There is also no doubt that being together helps with learning, development and coaching; hence the need to lean into the hybrid model and ensure that people are experiencing this both in person and virtually. Getting the mix right is important and valuable for workforce retention and productivity.
So – while offering staff more flexibility, or encouraging them to take time to disconnect from work and re-engage with family and friends might seem counterproductive considering current capacity challenges – an organisation stands to gain a significant competitive advantage in attracting and retaining talent if the employer chooses to meet people where they are, which ultimately improves productivity and profitability.
1. Flexibility for employees
It’s increasingly vital that leaders take the time to listen to what employees see as important to them, and one of the most important things is flexibility. Consider including formalised or expanded allowances for flexible arrangements in future reward strategies, including flex start and finish times, and the ability to travel and work from different locations. All supported by the right technology and leadership that role model behaviours that don’t discourage people accessing these flexible arrangements. These are the kind of real-world benefits employees are looking for now and, as finance leaders, we would do well to listen closely.
2. Flexibility for rewards strategies
To avoid being saddled with permanent, unsustainable P&L increases in the future, finance leaders also need to adopt a flexible approach to their reward strategies. This is particularly important as we look two to three years ahead, mindful of the headwinds of potential recession and changes to the talent cycle that will undoubtedly follow. Considering options such as sign-on bonuses and revamped reward frameworks (that take account of the inflationary market and pay pressures) and recognition programs (that allow for more frequent recognition as opposed to one-off annual payments) offer solutions that allow for both fiscal flexibility and the all-important investment in people.
3. Retaining existing talent
Not only is it more cost-effective to keep your existing talent in the organisation, but something powerful happens when employees look around, assess their options, and choose to stay. So, while much of the focus is on attracting new talent, efforts to invest in staff who choose to remain in your organisation cannot be underestimated. Ask how you can invest in the skills and capabilities of your people, not only for today, but for five years’ time? How can you ensure they are future-focused and employable while also ensuring they feel supported, invested in and therefore more likely to remain with the organisation?
Ultimately, as finance leaders, we are being asked a question: Will we view the current workforce landscape as a set of obstacles to negotiate, or as an opportunity to embrace? It’s definitely the latter, according to the finance leaders we spoke with at our G100 webinar. Which is good news for their organisations, and good news for their people too.
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