What do employees look for in an employer in 2024?

The single most important reason for considering your employees' values and preferences is that they may leave if you don't. The 2024 'What Workers Want' survey from New Possible found that while there are signs the great resignation is slowing down, your staff will still look elsewhere if your business doesn't offer what they're looking for.

Ensuring your company culture, values and employee benefits align with your employees' expectations can increase employee engagement and retention. Strategies that improve employee engagement lead to greater job satisfaction, better productivity and more creativity among your team. It also means you'll spend less time and money recruiting new staff.

Job seekers will also consider whether your values align with theirs, so sharing your values publicly and during the recruitment process will help you attract the best talent.

What are employees looking for from their employers in 2024? Let's consider some of the most critical factors.

In creating this guide, we've examined various employee surveys to determine the most important factors to employees and job seekers. These include the previously mentioned 'What Workers Want' survey and HR and payroll software company Ciphr's 2022 survey on the most highly valued employee benefits.

We found that while some of the things employees look for in their employers are measurable, such as pay increases and annual leave entitlement, others were less so. Factors such as a strong company culture, job security, friendly colleagues and feeling appreciated are essential to today's workforce.

We hope this guide helps you assess your company's performance against the things your employees value and discover more about their needs and preferences.

A positive work culture

A good workplace culture creates a positive employee experience, but it can be tricky to define. New Possible's survey found that 27% of employees surveyed would look for a new job to leave a toxic company culture. Multiple factors feed into a positive workplace culture, such as a feeling of job security, open communication and ethical practices. However, what a great culture looks like for your business will likely vary depending on your employees. There's a significant overlap between what Gen X and Gen Z employees look for, but cultural differences can still exist.

If your employees show signs of stress and burnout, are working excessive hours or leaving for better jobs elsewhere, it could be down to the workplace environment. A positive company culture typically comes from a combination of factors. These include workplace relationships, employee recognition, the potential for career growth, and measures that demonstrate leaders prioritise employees' health and well-being.

Effective leadership

It's often said that employees don't leave a job; they leave a manager. Effective leadership is vital at all levels of your business, from senior leaders to line managers and supervisors.

Employees increasingly value a sense that their employers share their values and that they're working towards a common goal. Ensuring your team is aware of your plans for the future helps with employee engagement and contributes to a strong company culture where everyone works together. It can also help employees envision their future career growth.

Good leadership is vital at team and departmental levels. Employees can become frustrated if they can't raise concerns or suggestions with their line manager. Minor problems can quickly become more significant if left unchecked. Employees who feel their contribution isn't valued lose motivation, which can affect morale within the whole team.

Effective performance management is also essential, as employees know what your expectations are. Addressing issues with their colleagues helps them feel supported.

An above-inflation pay rise

Here's a more tangible goal. The CIPD's Good Work Index Report 2023 found that 34% of employees were considering looking for a new job in the next 12 months to get better pay and benefits elsewhere.

The cost of living crisis is a significant factor in employees' desire for more money. The New Balance survey reported that 16% of respondents would leave their jobs if they were dissatisfied with the pay. Employees considered a fair pay rise would be around 8%, over 4% above inflation.

Employee expectations don't match the reality for many UK businesses, as only 17% expect to increase base pay by more than 6%. 24% of UK businesses expect to increase salaries by 4-4.99%, with 19% planning a 2-2.99% increase, while 12% are planning to freeze pay.

While an 8% pay rise may not be a viable option, it's worth considering what level of increase will receive a positive response from your employees.

Flexible working

A good work-life balance has gained increasing importance among employees and potential candidates. Each employee will likely have a view of what a positive work-life balance looks like for them and can come from various factors, including paid time off and provisions that reflect their other commitments.

Flexible working practices acknowledge that employees have a life outside of work and let them tailor their work commitments to suit them. Employees value flexible work highly, with 30% of New Balance respondents staying in a job because it offered good flexibility. Meanwhile, 50% of employees without flexible working were considering leaving their employer to find it.

As the name suggests, you can design flexible working to suit business needs and your employees' preferences. Measures could include remote work or a combination of office and home-based work. Flexible hours could mean shifting the start of the working day earlier or later or an overall reduction in the time an individual works. Some companies operate a system where staff must work core hours but can otherwise adjust their schedule as needed as long as they hit their total contracted hours overall.

Well-being support

Employees increasingly look for effective well-being support from their employer and it makes good business sense. Employee benefits and initiatives that support healthy living reduce absenteeism and increase employee engagement.

You can invest in paid services and benefits such as health insurance and an employee assistance program (EAP) that provides mental health advice. Medical insurance offers quick access to private healthcare and various services to help your workers improve their physical and mental health. An EAP offers confidential third-party advice and guidance for mental health concerns and financial and legal worries.

Your HR and occupational health teams can offer guidance to help you introduce initiatives designed to improve staff well-being. If you invest in medical insurance, your insurer may also provide this service.

Positive workplace relationships

Positive workplace relationships are great for employees' well-being and team morale. Having a best friend at work is great for team morale, employee engagement and overall productivity.

You can help your team build positive relationships by introducing initiatives that encourage staff to get to know each other away from the work environment. Some employees may appreciate social events that take place outside work, but these won't suit everyone. Encouraging your team to take a proper lunch break or organising lunchtime activities that promote conversation may be more practical.

Consider how well your top candidates will fit into the team when recruiting new staff. While good qualifications, skills and experience are essential, consider how a new employee will fit into the team dynamic.

Generous annual leave allowance

The statutory annual leave allowance in the UK is 5.6 weeks, so you must offer that as a minimum and encourage your staff to take their total allowance. Taking time off can help your team create a good work-life balance and allow them to switch off from work completely.

Offering additional annual leave shows your employees that you care about their well-being. You could offer an enhanced annual leave entitlement to all employees or add to an employee's allowance based on their length of employment.

Some companies offer unlimited annual leave. However, many employers find that this reduces the time off their employees take due to a lack of defined expectations.

You could also consider offering extra days off around bank holidays or Christmas, or giving staff their birthday off.

Appreciation from company leaders

Sometimes, all your team members want to know is whether they're doing a good job. You could wait for their annual appraisal, but regular feedback makes them feel appreciated and part of the team.

Saying thank you for a job well done or recognising that they've put in extra effort to complete a project or hit a goal goes a long way. You can thank individual employees or your whole team as appropriate. There are also more tangible ways to show your appreciation:

• Performance bonuses
• Team drinks or a meal
• Vouchers or gifts
• A rewards scheme where workers can nominate others.

Recognition for your workers' efforts has numerous benefits. It's great for morale, supports a positive workplace culture, and doesn't have to be expensive. Allowing team members to nominate their peers can also encourage good workplace relationships.

The potential for career development

Sometimes, a valued staff member might leave because they want to progress their career and can't do so with their current employer. Their options for promotion may be limited because higher-level positions are currently filled.

However, they may also be unaware of the possibilities or believe their employer isn't interested in their continued career growth.

Providing staff with information on opportunities for growth in their current role or other departments lets them see the possibilities. If there are roles that they could pursue with the proper training, consider whether you can offer this in-house via training sessions or mentorship or pay for courses with an external provider. Taking this approach demonstrates a commitment to their growth, even if they ultimately move to another employer.

Globacare is a regulated broker helping our clients choose the right insurance products for their needs. If you want to learn more about how insurance can help you attract and retain top talent in 2024, contact us for tailored advice.