How to Attract and Retain Talent in 2023
As the working environment changes, so do the expectations of the talent pool. In the new year, employers should keep some crucial things in mind when attracting and retaining talent.
Expectations in offerings have changed dramatically in the last few years. Once, employers could offer basic health insurance, 401k, and a couple of weeks of paid time off, and employees would be satisfied. Compensation was a primary driver as to whether employees remained in their current position. The sentiment has changed in recent years, and employers now find themselves offering more non-traditional benefits to attract and retain talent.
Benefits such as flexible work arrangements in the form of flexible hours and working environment. Employees are seeing the ability to create an active situation that works for them, whether hybrid, remote, or in-person. They are also looking to develop a schedule that fits their life and how they work. What does this mean for employers? To meet these demands, employers have to analyze their policies and procedures and develop a structure that works for what the company needs and fits the talent that the company wishes to retain.
Prospective talent and current employees are also looking for companies to invest in their employees. Employees want to feel valued and find ways to grow within their roles and the company. Employers must take stock of the growth and development their particular workforce is looking for. Employers should meet regularly with employees and keep a pulse on the job market. It is also essential for employers to invest in a range of opportunities for skill development and provide employees with greater access to mentoring and coaching options.
Ghost postings refer to job notices for positions that do not exist or aren’t intended to be filled in the immediate future. In 2020, Forbes reported that companies were posting for jobs while the company had hiring freezes because of uncertainty caused by the pandemic. Employers have reasoned that the value of these posts was to give the impression of growth and keep the door open to the idea of hiring new talent. Employers should beware of ghost postings as they can give way to reputational risk and unintended discrimination. Not only do these postings annoy unselected applicants, but they can also create a bad corporate impression on job boards, lead to potential discrimination cases, and discourage future applicants for actual job postings that are needed. These postings can also create animosity within the company’s current workforce, so employers should think hard about what they are trying to accomplish before using them.
Regarding non-compete, there are a few things employers should keep in mind. First and foremost is, will the state enforce them? In Michigan, the answer is yes. The law protects an employer’s reasonable competitive business interests. The agreement must be reasonable regarding the duration, geographical area, and type of employment or line of business that is being restricted. Additionally, currently proposed legislation would impose additional requirements on employers to provide applicants with written notice of the requirements for enforceable noncompete agreements, disclose the terms of non-compete before hiring, and post a copy of the Antitrust Reform Act at the worksite. Additionally, Michigan prohibits employers from entering into non-compete agreements with low-wage workers. This legislation is not law today, but the landscape is definitely changing.
Typical non-compete agreements have a short duration of one to two years. This duration may be longer if involving the sale of a business. Additionally, any restrictions regarding the geographical area should be limited to the radius that is necessary to protect the employer’s legitimate business. Conditions related to the form of employment or line of business should be restricted to the actual job the employee is performing and to the reasonable protection of company information. Keep in mind that in enforcing these agreements, the more narrowly tailored, the more likely it will be enforced by the court system.
When looking at non-compete agreements, employers must also evaluate what is reasonable within their workforce and talent pool. Employers that have non-compete agreements that are too stringent may scare prospective talent away.
When looking to the new year, employers should evaluate the changes in offerings, sentiment around ghost postings, and non-compete agreements—having a good handle on the changing workforce environment and expectations. Employers should talk with their employees and understand what they are looking for. These conversations can help employers develop tailored learning and development programs and create offering programs that will not only attract but retain current talent. Employers should also take advantage of any training or seminars related to employment changes. Utilizing these resources can help employers create a human resources roadmap for the year to come.
If you have further concerns about attracting and retaining talent in the coming year, contact Matt Fedor or a member of Foster Swift Labor & Employment law practice group.
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