South African companies that don’t pay attention to creating an ideal employee environment will struggle to attract and retain their top talent, and this will put their businesses at a disadvantage, according to new research from Remchannel.
The war for talent has driven South African employers to review their employee value proposition (EVP), which includes their reward philosophy, to attract and retain key talent, as this is crucial to the success and growth of any organisation.
Remchannel, a reward management platform for employers, conducted the research during 2021. It found that just under 50% of respondents across industry sectors indicated that it remained a challenge to define or change their organisation’s current EVP to keep up with the changes in the world of work and employee values.
The company’s Managing Director, René Richter, says the need to enhance your EVP has been accelerated in the last two years following the emergence of Covid-19. Family relations and quality of life have taken on a deeper meaning as workers came face to face with mortality and constant uncertainty.
A flexible work policy is becoming a deal breaker for workers
‘In the past, job security and decent remuneration were the price of admission to top talent. Today though, these skilled workers for example want the flexibility to take their kids to swimming practice during traditional working hours and to complete their work during hours that suit their individual lifestyle. Flexibility is the new expectation.’
An employer’s EVP is their holistic approach to the total reward offered and takes both financial and non-financial rewards and benefits into account. This approach includes all benefits such as leave, maternity policy, employee wellness, retirement funding and medical aid. Increasingly, it also factors in the company’s awareness of culture, its leadership effectiveness and development opportunities for staff.
Employees are now much more attuned to workplace culture and when it is perceived to be toxic. When workers feel disrespected or experience unethical behaviour, job insecurity, burnout or a lack of recognition, it could lead to resignations even when all other elements of the EVP are satisfactory.
‘Staff today, particularly highly skilled and white-collar workers, not only want to feel invested in the work they do, but they also want to see that their employer is invested in them and their values,’ says Richter.
The Great Resignation is a worldwide phenomenon
The rapid post-pandemic rise in resignations around the world has been dubbed The Great Resignation. This has been prompted by an increased awareness of – and demand for – a less stressful work environment and meaning beyond financial reward.
Employers in South Africa are also seeing signs of The Great Resignation, as shown by Remchannel’s statistics from 2021. While it’s not as pronounced as elsewhere, numbers could increase here if the pandemic were to become endemic, and employers were to insist on a full-time return to the workplace, she says.
The Remchannel research asked employees across industry sectors to rate the level of importance for six EVP factors:
- remuneration
- recognition
- employee assistance
- personal development
- flexibility and wellbeing
- leadership effectiveness
The results showed that employees value all six although workers in different industries have different priorities. Not one of these EVPs were seen to be unimportant or not necessary.
Challenges facing South African employers
There are cost implications for changing benefit and remuneration structures and the extensive consultation process employers need to go through to remain within the Department of Labour’s requirements.
According to Richter, there may also be a short-term impact on the cost base of the organisation and benefits may only be seen 12 to 24 months later.
However, she notes that an employer’s EVP can provide a competitive advantage and therefore the cost associated with losing key talent must be quantified and offset against the cost of affecting change.
‘Understanding what employees want through engagement and other internal research will highlight the most contentious issues in an organisation.
‘Engaging employees gives you a competitive edge. Organisations should strive to become a great place to work in addition to the traditional benefits. The importance of the workplace culture in the retention of staff cannot be underestimated,’ she concludes.
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