Public sector organisations are struggling to attract and retain key talent. Aon’s John Cass, strategic relationship manager and Nick Cosh, strategic advisory consultant, explore ways to improve recruitment and retention strategies.
Employees are key to success across the public sector. But, with many organisations struggling to attract and retain staff, there’s a pressing need for a rethink on recruitment and retention.
It’s a difficult time across the labour market, with the number of vacancies – 932,000 in November 2023 to January 20241 – still higher than pre-pandemic levels. And, while this number’s falling slowly, factors such as changes in employee expectations, digital transformation and the cost of living crisis make it harder to find and keep the right people.
This shortage of talent is felt particularly keenly across the public sector, where budget constraints add a further obstacle. Vacancy rates for some roles are in double digits – as an example, the Royal College of General Practitioners points to some 250,000 vacant posts across the NHS and adult social care2 – and some vacancies attract no applicants at all.
Failure to attract or retain top talent is recognised as a significant risk by public sector organisations in Aon’s Global Risk Management Survey, taking third place behind cyberattack and reputational damage in the current risks and second place in future risks.
Having the right employees in place not only ensures the smooth delivery of services but it also reduces other risks such as failure to meet customer needs, reputational damage, and data breach.
Look for potential
Finding the right person is made even more difficult by a tendency to be overly prescriptive on the skills required. Some public sector job advertisements can list as many as 20 essential skills, severely narrowing down the pool of potential candidates.
Rather than look for a fully formed individual, organisations may want to consider recruits who have the abilities and potential to do the job. For example, someone with empathy may be better placed to take up a role working with children with special educational needs and disabilities than another candidate who has experience but lacks interpersonal skills.
Using assessments as part of the recruitment process can help an organisation identify the best candidates. This could include psychometric and situational testing to really understand an individual’s potential.
Sell yourself
The other issue affecting recruitment is that the public sector isn’t great at selling what it does offer employees. A job for life may not have the cachet it had in the past, but benefits such as good parental leave, generous holiday allowances and mental health support are the norm in many public sector organisations and a considerable draw for those seeking a good work life balance.
Talking about what it’s like to work for the organisation – the employee value proposition – and all the benefits on offer will appeal to a broader range of candidates, many of whom may have dismissed the public sector as a career option.
Cost of leaving
The other part of the talent equation is retaining employees. Although turnover can easily be dismissed as a natural part of running an organisation, losing staff can have a significant financial impact.
As well as the costs associated with a vacant position, such as temporary cover and overtime, there are also expenses involved with recruiting and onboarding a new employee. These include the job advertisement, background checks and the salaries of those involved in these processes.
It doesn’t stop there either as it takes at least six months for an employee to get used to their new job and around a year before they’re fully up to speed.
Added together, the average cost of an employee leaving varies from 50% to 200% of their annual salary. Therefore, if an organisation has 100 leavers a year on an average salary of £40,000, that equates to an annual cost of between £2m and £8m3.
Slow the flow
Quantifying this cost can encourage greater engagement with and investment in strategies to retain employees. The first step is to identify the nature of an organisation’s turnover problem.
A deep dive into an organisation’s turnover data can highlight whether there are certain areas or demographics where turnover is higher than average. Then, by looking for correlations with other factors, perhaps by bringing in responses to exit interviews, it’s possible to identify where change needs to be made.
For example, if an organisation finds the over 50s are most likely to leave, it may be that the workplace does not offer sufficient flexibility and support to those who want to work fewer hours or are having to take on caring responsibilities. Likewise, a high turnover in one department should trigger further exploration into whether the exodus is down to factors such as the workload or the line manager.
Culture shock
Alarmingly, when it comes to the reasons employees give for leaving an organisation, toxic company culture is the most common. This was given by 62% of respondents to a survey by FlexJobs, just ahead of low salary at 59%4.
Shifting culture may feel like a mammoth task but a study by United Culture5 found that line managers have a key role to play in setting the workplace tone. It found that many workers feel unsupported by their managers, which has a negative impact on company culture.
Training line managers can help prevent a toxic culture taking hold. Many were promoted into these roles on the back of their technical ability rather than their people management skills, so there may be room for improvement. For instance, Aon’s Pulse Survey found that more than half of managers do not feel comfortable in dealing with managing team wellbeing6.
It’s also important that they are engaged with the workplace culture the organisation wants to promote. Ensuring they know about the benefits and support that’s available to employees will help keep the workforce happy and motivated.
Building loyalty
Analysing the reasons why people leave can provide valuable insight but it’s even more important to focus on the reasons employees stay. Running retainer surveys asking employees why they like working there can identify key areas to promote – or improve – across the workplace.
As the results of any employee surveys can often be swayed by individuals giving the answers they think they should give, more sophisticated options are available. As an example, Aon’s next generation employee listening technology Reflection uses behavioural science to really understand employee sentiment.
This insight can help an organisation understand employees at an emotional level, enabling them to provide the benefits and working conditions that fulfil their needs.
Personal best
This deep dive into what makes employees tick is also likely to throw up another conundrum for organisations. As workforces become increasingly diverse, there isn’t a simple one-size-fits all solution to keeping them happy and motivated.
Personalised benefits, which can be offered through benefit platforms such as Aon’s Benefit Solution, enable employees to pick a package that meets their needs. This ability to tailor benefits also makes them feel valued as an individual.
Organisations need to look beyond products when considering the benefits they offer. Changing employee expectations mean that everything from flexible working and clear career paths through to regular social events and the opportunity to volunteer can make a real difference.
It’s also essential that wellbeing is part of the mix. Enabling employees to access wellbeing support benefits their health, but also shows them that the organisation cares about them. Again, offering a mix of different initiatives, supported by regular communications, will ensure the broadest reach.
Winning the battle for talent may require a rethink. But, with this involving an in-depth look at the organisation and its employees, it’s likely to have benefits well beyond a happy and engaged workforce.
More information
To find out more about how Aon can support your recruitment and retention strategies, speak to your Aon consultant or contact John Cass ([email protected]) or Nick Cosh ([email protected]).
1Vacancies and jobs in the UK - Office for National Statistics (ons.gov.uk)
2What needs to be done to address staffing shortages in health and social care? | British Journal of General Practice (bjgp.org)
3This Fixable Problem Costs U.S. Businesses $1 Trillion (gallup.com)
4Great Resignation: Survey Finds 1 in 3 Are Considering Quitting Their Jobs | FlexJobs
5United Culture | Press Release: One in six say line managers are the reason people don’t speak up at work (unitedcultureco.com)
6Access Aon's May 2021 Global HR Pulse Survey Results
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