How HR leaders can recruit and retain top talent in a market with a growing talent pool

Across the tech industry many companies are continuing to layoff employees with more planned down the line, like Meta which has more layoffs planned into the summer. And many employees across industries have been impacted by layoffs, not just those at tech companies. These layoffs are leaving a large talent pool of qualified and experienced people looking for new positions, but they will crave stability and purpose in their new positions. At the same time, many employees who had to be in the office or in a hybrid work model will be looking for fully remote roles, and if they need to be in a role that requires travel, like sales, they will want the right support from their employer.

This article will explore how employers can attract and retain top talent when there is currently a surplus of talent in the market looking for the right role.

What’s next after layoffs

Since the beginning of 2023, 128,202 tech employees have been laid off, according to Layoffs.fyi, and it extends outside of tech with companies like Tyson laying off 1,700 employees and 15% of senior leadership roles, 3M cutting over 6,000 employees, and many newsrooms have been hit as well like Buzzfeed reducing 15% of its workforce.

As these workers look to find a position at a new company, employers need to have the right offerings and tools to attract this talent and retain them once hired. Employees’ needs have also shifted and in many cases what they prioritize in a new employer includes transparency, respect, feeling valued, and freedom of choice. Additionally, many workers could make a new role decision based on relocation packages if needed and cost of living of the location of the role.

It’s important to remember that there are different kinds of employees, and their needs will differ – from an on-site professional who is working standard business hours, to a distribution representative who works in the field a few days a week, or an IT tech professional who works non-standard hours.

Tangible benefits that can make a difference

A first priority for employers to consider when looking to attract top talent is offering individualized, location-based reimbursements for remote workers, office workers, and mobile workers for the business use of essential tools. For instance, if employees are required to drive for work, use their phone for work purposes or even work from home and leverage their home broadband, reimbursing them and providing freedom of vehicle and phone choice is a benefit that employees might not know they are missing out on.

Another benefit that is a key part of an offer package for new hires is a relocation solution that can increase flexibility for workers and control costs. This can include a lump sum allowance to help with the cost of searching for a new home, temporary living costs, and final move costs. This provides the funds upfront and allows transferees the flexibility they need to meet their unique moving circumstances.

Related to relocation solutions is having a location analysis tool for cost of living. The difference in the cost of living between cities can be vast. Doing location cost analysis for employees makes a move more successful by comparing relevant costs before a move occurs so employers can create fair and accurate relocation packages. If an employee is going to relocate, employers can help employees successfully adapt to their new location using specific criteria like living community selection, transportation, income taxes, homeownership and more.

Mental health resources are also paramount and cannot be an afterthought. Providing tools, resources and access to individualized mental health support is essential to supporting the whole employee as they navigate work life, family life and personal endeavors. Having robust benefits around mental health can be a differentiator when employees are evaluating their next employer.

Purpose-driven benefits

In addition to tangible benefits included in packages, it’s important for employers to prioritize the employee experience. Organizations need to have clear goals set and communication channels with employees. Every employee needs to feel they have a meaningful role within the company and clearly see how they impact the company’s vision and direction. Organizations need to step back and make sure they are being more purpose driven so employees feel what they do each day will have a significant impact on the company’s overall objectives.

Employers should provide a clear path and process for employees to create individual goals, so they are clear on what they are doing and how it impacts their individual growth path and the company’s overall success.

Employers also need to assess the candidates they are considering to make sure they are a culture fit as well. An example being, an employer will know they are talking to a good candidate when the candidate asks, ‘how do I contribute to the company’s success?’ and ‘how do I impact success?’. It’s important to align on values and see candidate priorities early in the hiring process.

As the market experiences a surplus of talented individuals seeking new opportunities due to layoffs, HR leaders must adapt their recruitment and retention strategies to attract and retain top talent. Recognizing the diverse needs of employees is crucial, from offering remote work options to providing support for those who require travel. Tangible benefits such as location-based reimbursements, relocation solutions, and cost-of-living analysis can make a significant difference in attracting and retaining talent. Equally important are mental health resources, as organizations must prioritize the wellbeing of their employees.

Read more: Retirement planning: ‘Top priority’ in retention, say 99% of HR leaders

Beyond tangible benefits, creating a purpose-driven environment where employees feel valued and connected to the company’s goals is essential. Clear communication, individual growth paths, and cultural fit assessments are vital elements in ensuring employees understand their contributions and align with the company’s values. By understanding and addressing the evolving needs of the talent pool, HR leaders can position their organizations to recruit and retain top talent successfully.

Kristen Dooley, chief people and operations officer, Motus