Attracting and retaining top talent

Attracting and retaining talent is a pressing challenge for SMEs, particularly in a tight labour market where competition is fierce. With over 1 million job vacancies and an unemployment rate hovering around 4.2%, businesses must be proactive in building an attractive and engaging workplace culture. The cost of replacing an employee earning over £25,000 can exceed £30,000, when you account for the costs of recruitment, onboarding, and lost productivity—a considerable expense that can significantly impact profitability.

Attracting the best people

To attract the best candidates, speed is crucial. We suggest you streamline the recruitment process as much as possible, as drawn-out hiring timelines can result in losing top talent to more agile competitors. Equally important is your company’s digital presence, which should clearly communicate your employee value proposition (EVP). This goes beyond pay; candidates want to know what it is actually like to turn up at your workplace every day and what it feels like to be part of the team. When considering whether to join your company, people are looking at your values, the growth opportunities, and whether your work is meaningful. Candidates are increasingly discerning, so a distinctive EVP can make all the difference.

Keeping your key team

Retaining talent, however, is where long-term success lies. If you were ever in doubt about the importance of employee engagement, then a study by Korn Ferry shows that improving employee engagement by just 10% can reduce turnover by over 10%, increase productivity by 10%, and boost profits by up to 10%. Employee engagement is driven by five key factors: a strong strategic direction, growth opportunities, effective rewards, autonomy, and a supportive community.

For people to feel engaged, you must make sure they know what is going on, so think about how you communicate messages to the whole team and ensure that your vision and values are reflected in your messages.

It’s worth noting that 70% of learning and development comes through on-the-job experiences, making it essential to provide continuous growth opportunities. If someone can see a career development pathway, they are more likely to feel a sense of purpose and a future within your company you’re your promote people to manager level, you must support them to manage effectively. Did you know that employees often leave due to bad managers, not bad companies? Ensuring leaders are trained to engage and inspire their teams is vital to creating a thriving workplace.

By fostering a culture that prioritises engagement, growth, and leadership development, you can effectively attract and retain the best people you need to succeed in today’s challenging market.