How to recruit and retain staff in challenging times

The ‘Great Resignation’, a phenomenon which began in 2021 and saw people resigning from their jobs in the wake of the COVID-19 pandemic, is still an issue for employers. Figures show that up to one-fifth of UK workers will look for a new job in 2023 as they search for better benefits or a higher salary.

The trend poses particular issues for small businesses, which tend to not have the same budgets as big companies to provide multiple benefits and big salaries. 

Despite this, there are steps small business owners can take to retain their existing workforce and attract talented new employees.

Consider new ways to recruit

The places where people look for new jobs has increased significantly in recent years. While you might be used to using a recruitment agency, posting job advertisements on your website or using well established online jobs boards, there are now lots of other options such as social media which allow you to talk directly to potential staff.

Professional networking website LinkedIn offers a formal recruitment service or you can post details of new roles on your personal or business profile and encourage your connections to share it.

For reaching younger workers in particular, platforms like TikTok and Instagram can be powerful tools. You can use them to communicate your company culture, respond to the latest trends and collaborate with influencers relevant to your brand and the people you’re looking to recruit.

You could also involve your existing and loyal employees in recruitment by running a ‘refer a friend’ scheme. This can help you to find quality new staff, reward your current workforce and reduce your recruitment costs. 

In return for recommending a potential new employee, provide staff with a financial incentive or another benefit. For example, this could be a bonus or gift voucher once the new employee has completed their probation period.

Embrace diversity

Creating a diverse workforce with people from different backgrounds, cultures and lifestyles has many benefits, both to the business and the individuals who work for it. 

By focusing on diversity you can open your business up to a wider pool of talent, improve productivity, boost employee engagement and enhance staff retention.  

Offer hybrid working

The coronavirus pandemic led to a surge in home working and despite all restrictions now being lifted, many employees still want flexibility when it comes to where they work. 

A report by professional networking website LinkedIn found that 60% of workers are considering changing their job in 2023, but one in five would remain in their current role if they were able to work remotely, or more flexibly.

Offering a flexible working model can help your business to retain existing staff and attract new ones. Studies have shown that it can also boost productivity.

Give your staff the option to work from home for a set number of days a week, or provide access to co-working spaces so workers can choose where they work.

Switching to hybrid working has the added business benefit of reducing office costs.

Learn from departing employees

Knowing why staff members have resigned can help to improve your recruitment and retention.

Conduct an exit interview before an employee leaves the business to receive honest feedback and understand the exact reason behind their departure. It can also highlight factors that need improvement.

You should plan the exit interview in advance and make sure you ask open rather than leading questions. Avoid questions that could be considered discriminatory.

Areas you could cover include:

• why they have decided to leave
• why they think their new role will be better
• what they think your business does well
• what they think your business could improve on

Various exit interview templates can be found online.

TaxAssist Accountants works with employment law service Employmentor which can advise on the legal aspects of exit interviews.

Team building

An important part of an effective company culture is strong employee morale, particularly during tough economic times. Team building can help to encourage this and ensure you retain staff.

You can build team morale through group activities such as paintballing, kayaking and go-karting or more simple actions such as providing a few drinks at the end of the week.

Ask your team what activities they prefer and set up social channels on digital collaboration tools like Teams and Slack which employees can use to have non-work focused conversations and build relationships with their colleagues.

Don’t forget to involve remote or home workers in team building activities. You can use platforms like Zoom to organise virtual drinks or events such as cocktail making, murder mystery evenings and pottery classes.

Training and benefits

Offering training and other benefits can help to attract and retain employees. While as a small business you might not have the large budgets of big companies to spend on expensive courses, there are still plenty of options.

You could allocate a set amount of money each year that each employee can use for a training activity of their choice, provide company-wide access to online training such as Masterclass and LinkedIn Learning or invite external experts to deliver talks and workshops for staff.

Encourage staff to regularly share their training requirements. You could do this by setting up an online suggestion box or using digital communication tools like Teams and Slack.

You should also pay attention to skills gaps that might be highlighted during employee appraisals. 

When it comes to other benefits, there are simple and low cost things you can offer to boost employee satisfaction. Examples include:

• day off on an employee’s birthday
• company-wide day off on the business’ birthday
• free snacks and drinks
• discounts on leisure activities such as travel and cinemas
• access to health advice

Get expert support and advice on employment law

TaxAssist Accountants can put you in touch with employment law support service Employmentor.

It is a practical and cost effective service that equips your business with all the tools needed to manage day-to-day employment law issues, while complying with your legal requirements.

Contact us on 020 3941 2011 or complete our online enquiry form and we will call you back.

Date published 22 Mar 2023 | Last updated 14 Feb 2024

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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