Companies battle to retain talent, as workers demand better salaries, conditions | The Citizen

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Employers who want to keep their most talented staff are being made to pay up, as workers demand a compelling value proposition for returning to offices.

Pressure on salaries is creating a new challenge for employers hoping to retain talented employees, as the so-called Great Resignation has also reached South African shores and is driving staff turnover. This is making a compelling employee value proposition for workers returning to the office non-negotiable.

While South African employers expect average below-inflation wage increases of 5,4% for the next 12-month period, they are under pressure to find new ways to keep staff happy in a time of record labour turnover, says René Richter, managing director of Remchannel, a member of the Old Mutual Group. According to Richter, the overall average lift to payroll prediction was 5.24% on a total guaranteed package basis across industry sectors for the next 12 months, compared to South Africa’s benchmark Consumer Price Index , which held steady at 5.9% in April.

The Great Resignation refers to a US-led trend of workers quitting amid the pandemic, opting instead for stimulus packages. South African workers are also looking for better opportunities and flexibility now.Why are employees resigning? She says this untenable situation would force employers to reconsider their employee value proposition and retention policies if they want to retain their brightest staff members.53% indicated that they are leaving for a better working environment, improve career opportunities, or avoid a toxic environment citing bullying or harassment8% indicated that they are emigrating.

Remchannel also conducted a snap survey to understand how employees feel about returning to the office after the state of disaster implemented by the government was lifted, and the results reveal a clear desire for a work-life balance, including working from home. Most of the participants implemented a hybrid working model and did not attempt to return to a pre-Covid office model.

 

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