Talent shortages have only become more prominent in 2022. According to the U.S. Bureau of Labor Statistics, roughly 4.3 million workers quit their jobs in January after the trend started in 2021– and there isn’t an end in sight. Growing skills gaps also make it more challenging to find talent and promote within. So, what can business leaders do to meet their workforce needs during this talent shortage? Retain, reward, renew, and recruit!
Retain: Reflect on Why Employees Are Leaving
A talent shortage is an ideal time for employers to look inward and reflect on the current state of their company. If you’ve had employees leave recently, can you identify a pattern in the reasoning behind their departures? Can you acknowledge a recent trend or change in the industry that your company has not yet adapted to?
Determine a few key factors for why employees are leaving your company, in particular, and the workforce, in general. Then, meet with your management team to discuss areas of opportunity for retaining employees and providing a more stimulating work environment. Start with re-evaluating the incentives you offer to attract talent in the first place.
Reward: Re-evaluate Compensation Plans
Compensation significantly impacts a candidate and an employee’s willingness to work for a company. Aside from salary, compensation packages should include various other incentives that promote a positive work-life balance and provide value to your employees.
An article from Forbes suggests that “sign-on bonuses, stock options, tuition reimbursement, 401(k) matching up to 6%, unlimited PTO, sabbaticals, child/older adult care assistance, monthly gas vouchers, and fitness memberships are ways for employers to stand out in the crowd and appeal to top talent.”
Renew: Focus on Professional Development
Current employees are often the best candidates for promotions and filling new positions because they have already been embedded in the culture and have an established interest in the organization. To overcome talent shortages in the industry, consider reskilling and upskilling your existing team.
A source from Mckinsey states that 53% of respondents believe that building skills within your organization are the most valuable actions to close capability gaps in the next year. The key, however, is to invest in professional development programs that effectively offer employees the proper training to succeed in the role and advance in the company. If employee retention and long-term success are your goals, internal mobility should be a high priority.
Recruit: Enlist the Help of a Professional Recruiting Agency
If finding fresh talent is what your organization needs, it will take more than a job listing to find the best candidate for the job. With the talent shortage showing no signs of waning in the near future, qualified candidates will be picky about the positions they apply for. This means it’s important to fine-tune your recruiting strategy to ensure your company is competitive and more appealing than competitors.
Partnering with an experienced recruiting agency can offer you a competitive advantage by providing insight into effective recruitment strategies, industry-standard compensation packages, and their pool of top talent. We specialize in finding the exact type of talent you need to fill the holes in your team. To learn more about how we can help you overcome talent shortage challenges, read the 5 Recruitment Strategies for Hard-to-Fill Positions.