Research shows, it’s not all about the money....

News...

Research shows, it’s not all about the money....

Jonathan Lee Recruitment and Integrated HR have recently carried out two pieces of research, which have found that in recruitment and retention, money is not necessarily the most important consideration. The research covered both contractors and permanent employees, and despite the difference in their ways of working, both have other priorities besides money, which employers must take into account.

Contractors

Recognition, achievement and challenging work make a real difference to contract workers according to research by Jonathan Lee’s Contracts division. Whilst they are still accepting roles based on the financial rewards, softer benefits are also crucial for getting the best out of them.

When asked what would make them change contract, the majority of respondents ranked financial reward as the most important factor, with 60% saying it was very relevant or essential. However, money doesn’t rank highest for providing motivation at work, being surpassed by achievement of objectives, ranked as very relevant or essential by 72% of respondents. And when asked what gives them satisfaction, the majority of contractors said ‘having done a good job’ (88% ranked as very relevant or essential), followed by ‘being valued by colleagues’ (65% ranked as very relevant or essential).

“The tradition within contracting is to attract the best employees with higher rates but this can cause problems with retention,” commented Kevin Harris, Senior Recruitment Consultant, Jonathan Lee Contracts Limited. “Our research highlights that contractors do care about things other than just money and employers need to take note if they want to hold on to talented engineers for longer.

Kevin continues: “Most organisations are failing to get the most out of their contractors on medium and long term assignments by not effectively aligning reward and job content with what motivates them. A flat hourly rate will attract a contractor, but will not retain or motivate on its own. By designing work to be interesting, setting objectives to be testing and giving a sense of achievement and recognition through periodic reviews, organisations can take advantage of contractors' intrinsic motivators.”

Permanent employees

An Integrated HR study looking into permanent employees’ career motivations has come to similar conclusions. Most notably it found that while money can make the difference when it comes to accepting a job offer, it is not one of the most important factors when people assess how happy they are in their current role. This again raises important questions about how to effectively retain and attract employees.

The most popular reasons people give for leaving a company is that they are bored or that they have ineffective management. Interestingly salary considerations do not come in the top ten of engineers’ motivations for leaving.
However, when asked what would make them accept a job offer, salary was the most important factor with people likely to turn down an offer if the salary didn’t meet their expectations or didn’t reflect the jobs responsibilities. Another key reason for candidates to turn down a job was based on it simply ‘not feeling right’. This suggests that candidates may subconsciously process and analyse a range of factors that will give them a gut feeling about whether the job is right for them or not.

“For employers in the engineering industry the message from this research seems fairly clear,” commented Henry Noteman, Operations Manager, Integrated HR. “If they want to keep hold of employees they must make sure that they meet not only their financial needs but that their job is varied, challenging and rewarding and that they are well managed.”

Top tips for improving recruitment and retention

Ensure that you identify the right candidate - In the first instance, employers must ensure that the right person for the job is recruited as this will avoid disappointment for both parties later. Companies need to consider a candidate’s skills, aspirations and expectations so they are sure these match the role.
Don’t just focus on the money - It is important for employers to offer fair salaries but to help secure the right candidate, employers must give them an accurate reflection of the role they are being offered and who they will be working with. It can be worth introducing candidates to the line manager and team and this may work well as a social event.
Clarify the job role - Employers also need to discuss what the employee’s role and responsibilities will be and also give them a clear idea of their objectives. Doing this right could make the difference between getting an employee who will stay with the company for a substantial period and having to repeat the recruitment process again and again.
Variety is the spice of life - Once an employee has been successfully hired, it is crucial to try and keep their job role as varied as possible to avoid them becoming bored and disengaged. Where possible, employees should be offered the opportunity to move around - this will not only keep them happy for longer but also improve the adaptability of the workforce as a whole.
Communicate regularly - Line managers should also meet with employees regularly to check they are happy and identify areas of dissatisfaction. The employee will appreciate this and it may stop them from deciding to leave when this could easily have been avoided.

Clients > News > Research shows, it’s not all about the money....