To Keep Top Talent, Employers Need to Consider Work-life Balance
While salary is still the most important aspect of a job for most, a new survey from the Employers Associations of America (EEA) notes that lifestyle factors are a significant consideration as well.
In its 2019 National Business Trends Survey, the EEA aimed to determine the top five most important factors prospective employees are looking for, with the goal of assisting employers with recruitment and retention. The top five factors included, in order, competitive pay (named by 82% of respondents), good work/life balance (69.2 %), flexibility in work hours (56.1%), opportunities for advancement (55.4%), and competitive health benefits (49.9%).
“The shortage of labor will be a key factor for employers in 2019,” said Phil Brandt, who chairs the EAA board of directors. “How employers will fill those new jobs is the real story. Employers will need to be even more creative in their recruitment and retention efforts than ever before.”
And if employees are prioritizing balance in their lives, companies should take notice, if only to assess the well-being of their workforce.
“These days, work-life balance can seem like an impossible feat. Technology makes workers accessible around the clock. Fears of job loss incentivize longer hours,” business writer Deborah Jian Lee noted in Forbes recently, noting that, according to a Harvard Business School survey, 94% of working professionals reported working more than 50 hours per week, and nearly half said they worked more than 65 hours per week. “Experts agree: the compounding stress from the never-ending workday is damaging. It can hurt relationships, health, and overall happiness.”
Still, this year’s EEA survey indicates a fair amount of optimism on the part of business executives for 2019. Nearly 74% describe their projected 2019 business outlook as a slight to significant increase in sales and revenue.
“The shortage of labor will be a key factor for employers in 2019. How employers will fill those new jobs is the real story. Employers will need to be even more creative in their recruitment and retention efforts than ever before.”
Supporting that optimistic outlook is the fact that 54% of executives surveyed plan to hire permanent staff in 2019. When asked the primary reasons for their 2019 hiring plans, 72% said their hiring will be to fill newly created jobs.
When asked which strategies executives are using to overcome recruitment and retention challenges, respondents identified, as the three top strategies, adjusting pay ranges upward, providing additional training and development for existing staff, and increasing starting salaries.
Executives were also asked to identify their top five serious challenges over the next year. The top five were talent acquisition (54%), talent retention (41%), ability to pay competitive wages (33%), ability to pay for benefit costs (28%), and competition in general (28%).
When that question shifted to their serious concerns over the long term — within the next five years — respondents cited talent acquisition (57%), talent retention (48%), ability to pay for benefit costs (43%), ability to pay competitive wages (40%), and competition in general (34%).
Finally, the survey also indicated the top five measures executives say they have been implementing — or are planning to continue to implement in 2019 — to strengthen business. These are investing in technology (52%), investing in equipment (50%), increasing recruiting emphasis (38%), increasing training budget (30%), and increasing total rewards education (22%).
The EAA is a not-for-profit national association that provides this annual survey to business executives, arming them with insights and trends for business outlooks, business-investment plans, staffing levels, hiring plans, job creation, pay strategies, and business challenges. The 2018 survey included 1,295 participating organizations throughout the U.S.