The lure of money – how else can employers stand out as attractive places to work?
With the Premier League season ending, Wimbledon yet to start and the Ashes series yet to get fully underway (we are choosing to ignore that First Test result!), we were feeling a little light on content here at the sports desk at the beginning of June. Then, just in time, the Saudi Arabian sovereign wealth fund (known as “the PIF”) opens up its coffers and sends the sporting world into a mini-meltdown.
Those who have some interest in sport will have been aware of the PIF for some time now. The PIF is one of the largest sovereign wealth funds in the world with total estimated assets of over £500 million and has been diversifying its investment portfolio in recent years by making significant in-roads within the sports industry. Back in 2021, the PIF funded the establishment of LIV Golf, a competitor to the traditional PGA Tour – not much later, some of golf’s biggest names were moving over to take part in the LIV Golf Invitational Series, signing lucrative contracts in the process. The same year, a consortium led by the PIF also acquired Newcastle United, prompting an immediate increase in investment in the coaching and playing staff and predictions that they would be dominating and outspending their rivals before too long.
So, what happened in June 2023?
Firstly, on 6 June the golfing world found out that LIV Golf and the PGA Tour would be merging, despite fierce opposition from the PGA Tour the previous year. Rory McIlroy, a staunch opponent of LIV Golf, said simply “Whether you like it or not, the PIF are going to keep spending money in golf… at the end of the day, money talks”. Shortly afterwards, the PIF announced that it would be injecting significant funds into four of the biggest clubs in the Saudi Pro League, which has very quickly seen those clubs hand out some eye-watering contracts to some of the world’s most famous footballers (£3.3 million a week for Karim Benzema?!).
Now, what has this got to do with employment law, you might ask? The answer: not very much at all. But it did make us think about retention, attraction and the lure of money – and the challenges employers face if they are not the highest-paying in their industry. What are employers supposed to do if a rival business has the money to offer significantly higher salaries and bonuses?
Clearly, money is important, especially at a time when inflation, interest rates, the cost of living and the energy crisis are combining to squeeze household incomes. That said, there are other things that employers can still be doing to set themselves apart from their competitors and remain attractive to current and prospective employees. Based on our experience of working with employers in a range of industries, these are our top five tips for boosting retention (besides doubling salaries):
- Flexible working: It has been clear for some time now that workers are valuing the ability to work remotely and on a flexible schedule more and more highly. For some, being able to live and work in the countryside and only commute into work when necessary is more important than a pay rise – having a flexible working policy could be the difference between keeping and hiring talent who have those priorities. This is backed up by research – according to a study earlier this year, more than 30% of UK workers said they would quit their job if they were ordered to return to the office full-time (see here).
- Family-friendly benefits: You may not be able to raise salaries or bonuses, but if you do have some spare budget, you may consider allocating that to enhancing pay for those taking family leave. If you are an employee who is thinking of starting a family, and you know that your employer has generous policies and benefits in place to support you during your family leave, that might be enough to make you ignore higher-paying jobs elsewhere. In particular, we are starting to see some employers expanding their benefits packages to include those focussing on menopause, fertility and family forming.
- Time off work: Employers are increasingly coming up with creative ways to give employees more time off work, beyond increased holiday allowances. Short-term sabbaticals are increasingly common, as is the concept of “reset” leave – e.g. offering employees an extra two weeks off for every three years they remain with the business. Not only is this a great way of attracting and retaining employees, but you should also find your employee population to be happier, healthier and more productive.
- Progression: More than any other, in our experience employees tend to up sticks when they do not like their progression prospects, or if they do not like the way their career is developing. Make it an essential part of your performance and line management processes for managers to discuss progression and career planning with their reports; employees are far more likely to be motivated and intentional about their work.
- Workplace culture: “Culture” – that mysterious, nebulous concept… Every business has its own culture, often set by the management, which can be a force for good or a reason for employees to leave. There is the fun stuff – organising social events, getting a drinks trolley now and again – but also the more serious or mundane matters which often get overlooked. Ensure all employee complaints are proactively and thoroughly handled, run training about standards of behaviour, take regular engagement surveys – all of these things can help you foster a positive workplace culture which is a place people want to work (and are less likely to leave).
As the world becomes more expensive, it is easy to conclude that pay is all that matters and that “money talks”. We can’t guarantee that you will be able to do anything to convince your employees to turn down £3.3 million a week to play football in Saudi Arabia for a couple of years, but we know from experience that employers who think about their employee offering in a more holistic way are much more likely to have better attraction and retention figures than those who only focus on salaries. That said – if anyone from the PIF is reading this and wants to make me an offer, I’ll listen…