So what is an employer to do? This is one problem that can't be solved by throwing money at it, unfortunately. “Traditionally employers have been looking at compensation,” Kloss told attendees. “ Now they need to be looking at work/life benefits.”

Here are three areas HR leaders should be thinking about as they aim to attract talented employees (and keep their existing ones) in 2019.

Know what you're selling

It's not just the current economy that makes hiring so difficult. “My competition is not just those in my industry; it's now my industry, my geographic area, my state area, also across the country,” Kloss said. “Big employers are your competitors. People want to go to work for the Starbucks, the Microsofts, the Googles.”

There's a reason these companies are at the top of job seekers' lists: they're constantly at the forefront of competitive employee benefits. That doesn't happen by accident. It's a shift to a more-strategic approach to human capital management, one that recognizes HR as an essential conduit for achieving the company's overall goals. “It's important that HR be able to understand the business objectives,” Kloss said. “What is the company mission, vision, goals? How are we going to get there, what do we need?”

This more strategic and holistic approach to hiring and retaining employees results in a strong, defined company culture. Once you have that, not only can companies develop a rewards package that's more attractive to prospective employees, but they'll also be prepared to answer the question of “Why should I work here?” during interviews.

Healthy employees are productive employees

A strong company culture is paramount not only to attracting and keeping workers but ensuring their continued productivity. “If an employee is not engaged, those are the ones calling in sick to go work,” Kloss said, noting the impact of employee engagement on productivity and absenteeism. “All of my costs are affected when I have poor employee engagement.”

Recognizing how various health and wellness issues affect employee productivity has driven an investment in employee well-being. High-impact life events, such as the birth of a child, a major illness, a divorce or death of a parent affect not only the employee but the employer. ”This is where their mind is focused, this is where their concern is,” Kloss said. “They impact an employee financially, emotionally, socially and physically. That's why we're looking at how a culture can be developed around these four components.”

Kloss expects 2019 to see more employers incorporating holistic wellness initiatives and building them into the culture of the workplace–not just standalone programs.

Perks are good, communication is better

During the webinar, Kloss cited statistics from a recent Korn Ferry study on the shift in job seeker's priorities. Five years ago, benefits packages and company reputation topped the list; today it's company culture and career progression. “It's no longer about 'here's what we're giving you,' ” Kloss said of the typical salary and benefits offerings. “They know the competition is so tight that they're not always asking, they're assuming they're going to get these things.” Perks like free coffee and game rooms have developed out of the shift in emphasis on workplace culture. “We want to keep people motivated, social,” Kloss said. “These are nice perks for doing those things.”

Those perks might make employees happier to be at work, but for the younger generations in particular, they don't move the needle on how happy they are with the work itself. For that, Kloss said, communication is an essential factor. “I need to have my supervisor telling me, am I doing a good job, am I on the right track, where do I need to improve?”

They aren't going to wait for their annual performance review for an answer. Communication and feedback are an essential part in today's company culture. “I look at onboarding and culture of the workplace as a longer-term process. I want the employee to know and understand the mission, vision, how they're integral to meeting that vision, how the organization is set up, how they engage with other coworkers,” Kloss said. “This should go from a very in-depth one week integration into the company, into their job, to those three month check-ins.

“Daily conversations with supervisors are important at any time in the lifecycle of the employee, but there should also be these specific 3- ,6-, 9-month and yearly reviews,” she added. “It continues through the performance management cycle. Aligning the business objectives with the employee.”

Planning to hire in 2019? Be on top of your game:

• 10 ways to reach job seekers in the digital age
• What's most important to today's job seekers?
• The 'Total Rewards' way to attract and retain talent