Future-proofing the employment relationship to boost retention

The economic squeeze caused by the Covid-19 pandemic, combined with the current cost-of-living crisis, means that, for many firms, simply raising staff salaries is not an option. Instead, businesses are thinking outside the box to ‘future proof’ their relationship with employees – offering new training opportunities, increased engagement and far greater flexibility.

Reskilling and upskilling

In recent years, most industries have invested in new technology, like artificial intelligence (AI), to boost their productivity. At the same time, many businesses feel squeezed financially in the wake of the Covid-19 pandemic – and the current cost-of-living crisis. In response to these factors, employers have often continued to adopt a traditional reorganisation strategy, focused on redundancy measures.

But in today’s tight employment marketplace, to future proof their relationship with their workers, employers need to be proactive in identifying, retaining and developing the talent that they already have in their workforce. Instead of making staff redundant, businesses are ‘reskilling’ or ‘upskilling’ their workers through assessments and coaching with a focus on transferable skills.

Doing so successfully will require investment in effective training programmes, as well as buy-in from the workforce and any unions that represent them. Despite these challenges, positively reskilling and upskilling staff not only boosts productivity and morale, but also reduces redundancy and turnover costs. Businesses that focus on retaining talent can also benefit from a reputation for innovative thinking.

Employee engagement

Before the pandemic, employee engagement was often something employers did reluctantly or sparingly. But Covid-19 highlighted the importance of employee wellbeing, productivity and retention. Many employers have realised that annual surveys and appraisal meetings are simply not enough when engaging with staff – both at a personal and a group level.

Workers often appreciate a greater focus on more regular team and individual check-ins, as well as a general feeling of openness and transparency with managers. These personal elements are important to ensure that employees feel recognised and valued as part of the wider organisation.

Engaging successfully with the workforce as a whole, however, might require employers to evaluate their relationship with any recognised trade unions that represent their staff. If there are no unions active in the workforce, employers should make sure that they have well-run employee forums and transnational works council arrangements where people’s concerns or questions can be addressed.

Employment contracts

Employment contracts are, traditionally, paper-based, and can contain more than 20 pages of archaic language that is difficult to navigate. Employers considering how to be more creative about the way they present contracts might choose to simplify and digitise such documents and make them more visual in style, making it easier to onboard employees, communicate messages effectively and store the information digitally. Digitising contracts also make it easier to update information that does not need a formal consultation to change, such as an employee’s address or other details.

Employers planning to abandon traditional paper employment contracts will still need to comply with local requirements, such as Sections 1 and 4 of the 1996 Employment Rights Act in the UK, which set out the minimum information that they must give an employee about their working terms and conditions and when this should be provided. Any significant changes to a contract would still require a reasonable approach, which often includes consultation with the employee.

Remote working and global mobility

The realities of operating during the pandemic meant that many businesses adapted to allow their staff to work remotely. Although lockdown measures are no longer in place, the flexibility offered by remote or hybrid working arrangements is extremely popular. But while many employers are happy to allow staff to work from home for at least a part of each week, some are going even further.

An increasing number of businesses are trialling ‘workations’ to make themselves more attractive to employees that are looking for modern ways of working. As the term suggests, workations combine work and vacations, offering employees the chance to work from anywhere in the world without using their vacation days. The appeal for employees is obvious, but the practice can pose particular challenges for employers, as the employment and tax laws of a minimum of two jurisdictions must be taken into account.

Despite this, increasing the global mobility of a workforce is a good way for employers to make themselves attractive, especially to young talent. Employers that offer workations to existing employees can use them as a way of retaining talent through increased employee satisfaction, appreciation, effectiveness and trust. In a world where employees want greater agility and flexibility about where they work, offering workations allow employers to set themselves apart from their competitors.

Co-written by Emma Noble of Pinsent Masons.