Organisations with defined and lived culture and values won’t need to debate the most appropriate approach to managing talent. Their purpose and values will dictate the best course of action, and the reward philosophy will guide the reward strategy.
Paternalistic or high-care cultures will prioritise the needs and wellbeing of their people, conserving jobs where possible. More individualistic cultures are likely to focus on retaining the top performers, and will take their attention off the rest of the employee population.
From our experience working across different sectors, an organisation’s role in society tends to reflect its internal values. Whilst retailers are fighting to keep costs down and remain accessible to their customers, they face the challenge of replicating that brand experience for their people. Through offering benefits such as increased staff discounts or free or subsidised meals retailers are trying to create this balance.
B2B businesses such as wholesale banking and professional services, by contrast, don’t tend to have the same external branding pressures, with consumers removed from the equation. These businesses often have high performance cultures where the war for talent is rife. Their employees are likely to be motivated by potential earnings, and understand their job is at risk if they underdeliver. Having said that, culture and belonging can also be a key differentiator for these businesses - as one investment banking professional said: “our culture works best for people who love their colleagues more than their families”.
It’s no surprise then that sectors such as healthcare and education tend to be more purpose than profit driven – and this will be reflected in the motivations of their staff. However, the very nature of the workforce in those sectors, with many on low wages, coupled with the inflationary environment opens up the prospect of union activity and strike action. If wages don’t keep pace with inflation, employees may be forced to leave the sector.
Businesses that behave consistently and in line with the company purpose and values will maintain the desired employee engagement. The really savvy leaders will adapt and continue to develop an employer value proposition that reflects the real time environment.