RESEARCH shows that employers are “thinking beyond the pay-packet” and pay rises are no longer the number one incentive for attracting new staff.
A study, conducted by Indeed Flex, has revealed that non-financial perks are now a stronger incentive than wages increases.
Examples of such bonuses commonly include provision of private healthcare, flexibility in working hours and better pensions.
The recruitment environment is becoming increasingly tough, with 45% of HR directors struggling to fill vacancies across the 1.1 million opportunities available throughout the UK in the past three months up to September.
E-commerce giant, Amazon, has been offering bonuses of £3,000 to new recruits in areas of the UK where it is short-staffed.
Many recruiters have increased monetary incentives, with 43% of HR directors raising payment offers by between 5-6%.
Whilst 47% are raising salaries “faster than usual”, half of the recruiters surveyed are choosing to focus on non-financial benefits which appeal to jobseekers.
Other incentives used have included ‘duvet days’ in addition to annual leave, childcare arrangements and private dental insurance.
Novo Constare, COO and Co-founder of Indeed Flex, said: “HR directors are now waging the war for talent on multiple fronts. The staffing crisis which first dogged the hospitality and logistics sectors is spreading to the wider economy, forcing ever more employers to fight ever harder to attract recruits.
“While offering higher pay is a tried and tested way of attracting candidates, it’s stroking how many employers are now thinking beyond the pay-packet. Non-financial perks and incentives can be just as effective as pay rises at drawing in applicants.”
The influence of the pandemic on workplace expectations and practices is undeniable, as flexible working arrangements are “proving particularly popular, among both employers and workers”.
He added: “We’re seeing a surge in the number of companies opting to build the bulk of their growth on a flexible, temporary staffing strategy.
“Meanwhile for many workers, choosing temporary work over a permanent job gives them the flexibility and freedom they crave.”