Difficulty hiring and keeping workers will last into 2022, Willis Towers Watson survey finds
August 25 2021 - 9:08AM
The majority of North American companies expect that their current
struggles to hire and keep workers will linger into 2022. That’s
the conclusion of a survey of 380 employers by leading global
advisory, broking and solutions company Willis Towers Watson
(NASDAQ: WLTW). In response, employers are implementing initiatives
that include boosting salary budgets, increasing workplace
flexibility, placing a greater focus on diversity, equity and
inclusion, and enhancing the employee experience.
The survey, conducted from August 4 to August 9, found nearly
three in four employers (73%) are having difficulty attracting
employees. That’s nearly three times the number (26%) that reported
difficulty last year — and up from the 56% that reported difficulty
the first half of this year. Roughly the same percentage of
employers (70%) expect the difficulty to persist in 2022.
Retaining employees is just as challenging. Six in 10
respondents (61%) are having a hard time keeping workers and also
expect the problem to linger into next year. Only 15% of employers
reported having difficulty retaining employees last year.
The survey found the catalysts creating these problems vary by
position, career level and industry. Postponing their return to
work and collecting unemployment is the most commonly cited driver
of attraction and retention difficulties for hospitality and
restaurant employees (72%) and warehouse and distribution employees
(62%). High-wage expectations among digital employees are creating
challenges for nearly half of respondents (48%). And over half
cited work-from-anywhere policies as the main challenge for
attracting and retaining managers (54%) and professionals (57%).
Organizations with work-from-anywhere policies have been able to
increase significantly their geographic area of recruitment,
creating more competition for talent.
“Employers are in the middle of an intense war for talent that’s
not likely to let up anytime soon,” said Adrienne Altman, managing
director and North American head of Rewards, Willis Towers Watson.
“The challenge of hiring and keeping employees has now spread from
isolated industries and skill sets to most industries and workforce
segments. To compete, it’s imperative for employers to take
strategic actions and find ways to differentiate the value
proposition they offer to current and prospective workers.”
One move that employers are making to help attract and retain
employees is boosting salary increase budgets for 2022. Three in 10
respondents (30%) now say they will increase their budgets from
earlier projections. Many are doing so due to tight labor market
concerns (75%) and anticipated stronger financial results
(41%).
Employers are also planning or considering other initiatives to
help find workers. The most common actions are raising starting
salaries (43%), improving the employee experience (39%), making
changes to health and wellbeing benefits (36%), and increasing
workplace flexibility (33%). To help retain employees, about half
are planning or considering making market movement adjustments
(49%) and giving larger raises (49%). About one-third (35%) are
planning or considering changes to their health and wellbeing
benefits. These percentages are in addition to those that have
already taken action in these areas.
“Sign-on, recruiting and retention bonuses can help employers
get the upper hand in the short term, but those initiatives are
temporary. If employers are serious about hiring workers with
critical skills and keeping their top talent, they need to
implement sustainable programs and policies that will enhance a
powerful employee experience, reimagine career opportunities and
flex to the needs of their increasingly diverse workforces. It’s an
opportunity for a ‘great awakening’ on the employee experience,”
said Lesli Jennings, senior director, Talent Management and
Organizational Alignment, Willis Towers Watson.
About the surveyA total of 380 employers from
the United States and Canada participated in the 2021 Talent
Attraction and Retention Survey, which was conducted between August
4 and August 9, 2021. Respondents employ 7.4 million employees.
About Willis Towers WatsonWillis Towers Watson
(NASDAQ: WLTW) is a leading global advisory, broking and solutions
company that helps clients around the world turn risk into a path
for growth. With roots dating to 1828, Willis Towers Watson has
45,000 employees serving more than 140 countries and markets. We
design and deliver solutions that manage risk, optimize benefits,
cultivate talent, and expand the power of capital to protect and
strengthen institutions and individuals. Our unique perspective
allows us to see the critical intersections between talent, assets
and ideas — the dynamic formula that drives business performance.
Together, we unlock potential. Learn more at
willistowerswatson.com.
Media contact
Ed Emerman: +1 609 240 2766eemerman@eaglepr.com
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