As we enter Q4, it is an excellent opportunity to reflect on what we have learned from our clients and candidates in the past 3 months. At LMRE, we pride ourselves on training our team to be 360-degree PropTech recruiters. This way, we are able to monitor and keep up to date with the ever-changing PropTech market, providing feedback to clients on what they should offer their potential employees, and candidates on what sort of things to consider when accepting a job offer.
Of course, when receiving a job offer, one of the most important and influencing factors that our candidates will consider is compensation. One of the key findings from our recent salary report ‘What Its Really Like to Work in PropTech’ reveals that 82% of respondents would quit their job for a higher salary, followed by better company culture, flexible hours, and better benefits (PropTech Salary Report, 2022). Whilst compensation is understandably a priority factor when negotiating a job offer, there are other key components that should be taken into consideration too. Earlier this year, Microsoft published a ‘Work Trend Index 2022’ that outlines the top five aspects of work (other than pay) that employees view as “very important” for an employer to provide: positive culture (46%), mental health/wellbeing benefits (42%), a sense of purpose/meaning (40%), flexible work hours (38%), and more than the standard two weeks of paid vacation time each year (36%) (Microsoft, 2022). So what do these findings mean for the future of the job seeker’s market?
The post-COVID world has seen a considerable shift from the typical 5 days a week in the office, to either a hybrid (3 days in, 2 days off) or fully remote working model. This shift has meant that there is a lot more flexibility in the job market, as people no longer must worry so much about their location. Instead, a flexible working model offers reduced travel expenses and easier childcare arrangements. Statistics from a Flexjobs 2022 Career Pulse Survey (Flexjobs, 2022) reveal that ‘63% of the 4,000 respondents stated they would choose better work-life balance over better pay and only 31% would choose better pay over work-life balance.’ Overall, flexibility in working hours and office attendance will become a core element of human resource offerings, with companies being judged on the benefits they provide for working parents, those that live out of the city and no longer want to commute, and people that work better in their own space.
With flexible working hours becoming significantly more sought-after by job seekers, there are also several other factors that employers can adopt to attract top talent to their businesses, such as a pension scheme, PTO packages, and healthcare benefits, to name a few. An article published by SHRM for employers looking to improve their employee retention cites a 2021 Workhuman survey that found that ‘66 percent of employees are waiting to review their company’s new benefits offerings before deciding whether to stay or go’. As part of the 10th Season of the Propcast, Louisa spoke with Peter Epping and Kathryn Scheckel from Hines where they discussed the emerging trends of millennial job seekers. Louisa explains how candidates that she has spoken to who are applying for jobs “are going to be much more conscious about the health of the building they’re going to be working in, and whether the business they’re going to be working for is making an impact”. The new generation of job seekers entering the job market are increasingly interested in what sort of building and business they are working with, whether it be a healthy building or an impactful business. In this way, employers need to ensure that their sustainability and ESG initiatives are up to date with current trends, proving that their buildings, office spaces and general business is environmentally conscious, green, and pro-actively seeking to positively impact the environmental effects of the built environment.
The good news for employers is that there are many ways to improve employee retention. Inclusive work culture is one example of reducing employee turnover by ensuring each employee feels valued and appreciated. For example, an inclusive and detailed onboarding process for new hires is a terrific way to welcome a new employee into your business. So, what does this onboarding process look like?
All companies must foster an inclusive in-house culture primarily, before reaching their external audience. Encompassing a continuous improvement approach through the learning and development of processes and policies across the employee cycle to using evidence-based decisions and approaches will improve both employee turnover and satisfaction.
In summary, whilst compensation is important to every employee, it is crucial as an employer to offer additional benefits. The post-COVID world has significantly shifted the working model, resulting in new expectations and standards of what people are looking for and prioritising for their work. Whether that be flexible working hours, pension schemes, or PTO packages, employees want to feel valued in the company they work for. Compensation alone will not improve employee turnover. Instead, strong onboarding processes, inclusivity, and a focus on company culture will inevitably mean employees will be more satisfied, productive, and content with their role in the company.
Flexjobs – ‘Work-Life Balance or Better Pay? Two-Thirds Choose Balance’, Jessica Howington, August 25 2022. Accessible at: https://www.flexjobs.com/blog/post/work-life-balance-or-better-pay-two-thirds-choose-balance/
LMRE & FifthWall – PropTech Salary Report (2022), ‘What Its Really Like To Work in PropTech’. Accessible at: https://www.lmre.tech/wp-content/uploads/2022/09/What-its-Really-Like-to-Work-in-PropTech-2022.pdf
Microsoft – ‘Great Expectations: Making Hybrid Work Work’, March 16 2022. Accessible at: https://www.microsoft.com/en-us/worklab/work-trend-index/great-expectations-making-hybrid-work-work
SHRM – What benefits can employers offer to improve employee retention? Accessible at: https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/benefits-to-improve-employee-retention.aspx
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