As the competitive job market proves its staying power, many industries continue to suffer from labor shortages and retention challenges. With more opportunities than ever before, the demands and expectations of the workforce are changing, forcing companies to reassess their benefit and culture offerings to remain competitive. To ensure operations are not negatively impacted by […]
As the competitive job market proves its staying power, many industries continue to suffer from labor shortages and retention challenges. With more opportunities than ever before, the demands and expectations of the workforce are changing, forcing companies to reassess their benefit and culture offerings to remain competitive. To ensure operations are not negatively impacted by these persistent issues, leaders must act now to mitigate these challenges by finding ways to effectively communicate who they are, what they believe, and what they offer as an employer.
Prevalent pain points in recruiting & retention
There are four prevailing pain points in recruiting and retention today that contribute to ongoing labor-shortage challenges, with the most obvious being the state of the current job market. Businesses are finding it harder than ever to remain highly competitive in an environment where the pool of experienced, skilled laborers seeking new opportunities is getting smaller. To make matters worse, potential hires have more options than ever before. This puts companies across industries in direct competition with each other and applies pressure for leaders and hiring managers to remain well-informed of ever-changing and sometimes “trendy” benefits and perks. Wages, for example, are a leading driver of an employee’s decision to accept a job offer or remain at their current company. Across the board, from fast-food establishments to financial institutions, entry level wages are rising as the demand for workers increases. Leaders must remain aware of what competitors and industry peers are paying their workforce to ensure they are finding, and keeping their top talent. Lastly, the rate of turnover continues to rise for many, as the workforce is constantly seeking opportunities for better pay, more benefits, and greater flexibility. This continues to be highly disruptive to operations and costly for employers to find and train new talent. These challenges, unfortunately, aren’t going anywhere, so companies must seek to make systematic changes to stay ahead of the curve. Below are some recommended strategies to deploy in [the year ahead] to effectively navigate these pain points.
Improve your communication
Communicating your expectations properly to prospective hires and current employees will build a strong foundation of transparency and trust. For starters, when seeking new talent, make sure that the job expectations you are sharing are accurate, clear, and all-encompassing. This applies to the job description, the way you define your culture, and day-to-day expectations for the role. This ensures you are hiring someone with the right skillset for the job and avoids any frustrations from employees that feel they were misled. Beyond job descriptions, these rules should apply to your marketing materials as well, from your website to your social media platforms. All these materials should paint an accurate picture of your culture and the nature of your work. When it comes to retention, ensuring communication goes two ways is key, especially with the abundance of opportunities in the marketplace that threatens to attract your workforce to competitors on any given day. Conducting regular “stay interviews” is a great way for managers to identify and address any frustrations or desires from employees before they consider leaving. Your people should take an active role in shaping your culture to ensure that you are fostering a pleasant and positive work environment for all, and regular check-ins are invaluable in making sure your employees feel heard.
Enhance your culture offerings
When it comes to fostering a culture that remains competitive in the marketplace, you should start by asking yourself some vital questions. Do my employees value the benefits I offer? Are we living up to the way we define our culture externally? Reflection is the first step in making pivotal changes to attract more talent and keep your current workforce happy. This is another area where listening to feedback from your employees is crucial, especially in an environment where the needs and wants of the workforce continue to evolve. Through methods like input sessions and surveys, companies should seek to refine the employee experience in ways that meet employees’ needs, while identifying recurring language and employee desires to re-articulate their culture in job descriptions and external channels. This ensures that current employees see the change they want to see, while also improving your chances of attracting likeminded prospects. One group that should not be overlooked in this process are your board members. Since they form the governing body that oversees the direction and performance of all areas of your organization, it only makes sense to ensure they are taking an active role in the creation and maintenance of your culture.
Automate & outsource
While the above methods are great strategies for addressing labor shortages in the long term, many companies are seeking short-term solutions to their staffing woes. That’s where automation and outsourcing come in. Automation is a great way to address administrative tasks so that your current employees can focus on value-driven work and avoid being overwhelmed. For example, tools like chatbots can collect and organize customer or prospect information quickly, improving efficiency and streamlining operations. There is also more complex software available for functions like accounting that can improve reporting accuracy while saving companies time and money. Outsourcing is another great opportunity to ensure you have access to professionals while avoiding the cost and disruption of turnover. Operations like auditing, human resources, and information technology are commonly outsourced to combat a lack of experienced and skilled talent. Recruitment and retention will continue to pose challenges for leaders in the year ahead, but they are essential to successful business functions. Taking proactive measures to appeal to the right talent and maintain a content workforce will help you to combat and avoid the common pain points of the labor shortage and thrive in competitive markets.
Joanne Vadala is director of talent management at The Bonadio Group.