Workforce dynamics are changing. In a tight labor market and rapidly changing work environment, how can an organization remain competitive in recruiting and retaining talent? What role can the board play?
Trends in recruiting and retention
Knowledge is power, and understanding the dynamics of the marketplace will help inform decisions affecting a company’s workforce strategies. Following are some of the latest issues affecting workforce hiring and management:
- Human resource integrated systems: Organizations are pulling together collaborative medians that incorporate HR, finance and technology. These integrated systems allow HR, management and the board to gain a detailed understanding of recruiting efforts, training, compensation, workforce demographics and more.
- Retention of top talent: What millennials value can be drastically different from what baby boomers prize, so understanding how to attract and retain a multigenerational workforce can be difficult. Companies need to identify which age groups hold the talent they need and adjust their recruiting efforts and benefits packages accordingly.
- Labor shortage and employee tenure: Low unemployment rates notwithstanding, one reason it’s difficult to find qualified talent is tenure. On average, employees who are 25 years old and under stay at their jobs for 5.1 years; those who are 55 years up to retirement age stay at their jobs for 10 years. In other words, people aren’t staying in one job for their entire professional lives.
- Leadership development: Employees want to grow as they develop their careers. Many middle market companies are carving out learning and development tracks, making sure progress is tied to performance. This can benefit the individual professional as well as the organization as a whole.
- Succession planning and workforce management: If a company’s potential leaders understand that they have mobility within the current organization, this can be an extremely powerful retention tool. But it takes planning to identify the roles as well as the individuals to fill them, and careful alignment of the two.
- Individual motivators: Different people view benefits differently, and their views may change at various stages of their lives and their careers. From compensation to health care, companies are redesigning benefits to offer packages that reflect each individual’s changing needs.
- Talent experience: How a company connects its own core values with those of its employees helps to determine the professional growth of the workforce.
- Relevant results and data analytics: This is an area where board members can really help management. To be part of the solution, board members have to connect with HR, IT, finance and management. Understanding the demographics of the company will help management and the board make informed decisions.
- Diversity and inclusion: More than just a program, diversity and inclusion should be embedded in the company culture. Boards can set their own goals for inclusion and work with management to meet them.
Learn additional trends in talent recruitment and retention—and the role of the board regarding workforce issues.