Keep spirits and retention rates high after tax season
Filing 2021 taxes has been especially stressful this year, as many tax pros are still burnt out from last year, which a recent report from National Taxpayer Advocate Erin M. Collins dubbed “the most challenging year taxpayers and tax professionals have ever experienced.”
Employees feel more empowered than ever to take control of their lives, and they are reassessing what’s truly important to them. After multiple challenging seasons, tax professionals may be inclined to take advantage of the competitive talent market and explore outside opportunities that offer a better work-life balance, higher compensation, or a more comprehensive benefit package. To mitigate this, managers and firm owners should implement creative retention strategies to keep hard-working talent feeling appreciated and less inclined to explore new job opportunities.
Following are some data-backed, future-proofed tips to revamp your firm’s post-tax season retention strategy to keep top talent on-staff.
Offer competitive salaries
Competitive salary remains a key priority for talent. This is especially true as rising inflation rates and expensive gas prices may make employees feel like their current salary isn’t giving them the same bang for their buck. In fact, per LHH’s 2022 Readiness Index, a global study on how ready workers in the financial sector feel for the future of work, financial motivation is the biggest driver of people getting ready for their next opportunity.
If salaries have not been increased recently, now is a great time to consider performance-based salary increases to reward work well done or even cost-of-living adjustments to accommodate for inflation. Managers and firm leaders should do this proactively and quickly. Don’t wait for employees to ask for an increase. Many may not be willing to wait when they know they have better options elsewhere. This is especially true in places where new legislation on salary transparency is being introduced, allowing job seekers to see salary ranges on job postings.
Conventional and unconventional benefits and perks
Benefits are also an important factor in keeping employees happy. Talent’s priorities change from year to year, as they experience different life events, such as starting a family or moving further from the office. Subsequently, it’s imperative to review company benefits regularly and make necessary updates to ensure they are still appropriate to the company’s mission and employees’ changing needs. For example, prior to the pandemic, benefits like catered lunch were enticing; now, two years later, hybrid work arrangements, flexible schedules and wellness stipends have grown in popularity.
Career growth and learning opportunities are also vital offerings for employees, particularly those newer to the workforce who have largely missed out on traditional in-person relationship building and learning opportunities due to the pandemic. This lack of connection and training has left some employees feeling stuck or behind in their careers; the aforementioned Readiness Index revealed 34% of Gen Z respondents feel like they cannot use their existing skill sets at work, due to a lack of in-person workplace connections and training opportunities. Employees who don’t feel like their skill sets are being leveraged in a meaningful way, or who don’t feel supported when it comes to honing their skills, are at greater risk of becoming disengaged. Implementing continuing education programs and providing upskilling opportunities can help get workers up to speed and feeling more confident in their capabilities.
Additionally, LHH Recruitment Solutions’ 2022 Compensation & Workforce Trends Survey found that 54% of hiring decision makers have turned to upskilling current employees within their organization as a retention tactic. Employee education goes a long way and can serve your firm and its employees well, both for the short-term post-tax season and for the long-term.
Other traditional benefits such as increased time-off post-tax season and bonuses are still important to employees, too. After putting in long hours and hard work throughout the season, a merit-based bonus can serve to make sure high-performing employees feel valued. If budgets are tight, extra vacation days or even perks as simple as catered meals (or comped meals for those working remotely) and gift cards are also great ways to show appreciation.
The balance of culture and flexibility
A positive and welcoming culture can be the determining factor for employees who are deciding whether to stay at their current position or leave to go to a competing firm. In fact, 65% of hiring decision makers said they believe employees are drawn to a company through a good workplace culture, per the Compensation & Workforce Trends Survey. Investing in a positive culture can have a significant impact on retention, particularly for smaller firms that may not be able to match the sky-high salaries or signing bonuses offered at larger firms. Particularly after the last two challenging years, employees are no longer tolerating cut-throat, stressful working environments. If managers create a culture of collaboration, purpose and work-life balance, employees will feel more compelled to stay long-term.
Flexible work hours are another benefit that has grown in popularity because of the pandemic. People want to work when, where and how they wish. Measuring productivity via traditional measures, such as hours worked, is slowly becoming less of a barometer of success. Instead, output and results have become more accepted and necessary in some cases. For example, working parents may need to log off or sign on at different times to accommodate their children’s schedules. Allowing employees to set and work their own hours not only helps employees create work-life balance, but also signals they are trusted to accomplish their work without constant oversight.
Lastly, mental health in the workplace has become an increasingly pressing topic of conversation, particularly due to the tumultuous circumstances of the last two years. Mental health impacts employees’ job performance and overall satisfaction. Exhibiting empathy and creating a safe space for employees to have candid conversations about their mental health must become a priority. Businesses can demonstrate mental health is a priority by implementing mental health days, designating time for workers to unplug and do something to benefit their well-being, and offering flexible working hours that accommodate for employees’ preferences and needs. Proactively having these types of programs in place will not only help employees recover mentally from a demanding tax season, but also ensure they are ready for the busy season to pick up the following year.
It is inevitable that tax season will bring additional work and stress. Still, by putting an increased emphasis on the employee experience — from addressing pain points to understanding desires and needs and ensuring a positive work environment — firms can keep top talent on staff for many tax seasons to come. Amid an ongoing labor shortage, employees have more leverage than ever; leaders who focus on their employees’ satisfaction will future-proof their firms against challenging and stressful periods.
