What it does signify is that the economy and the workforce will be different down the road, with Baby Boomers retiring, Gen Xers taking their place, and Millennials on the rise. Likewise, other factors – technology, globalization, education, training – are changing the way we do business and how many jobs are performed every day. Those are not new ideas, and savvy companies and managers are keeping an eye on all aspects of the longer-term horizon.
In the shorter run, one of the biggest challenges facing HR professionals in 2015 is talent management – specifically, recruitment and retention of talent; put another way, finding the right candidates for the right jobs, and keeping those employees happy and employed by a firm over as much of that longer-term horizon as possible.
It may be easier said than done.
Return of the Buyer’s Market
Last year (especially the latter part of 2014) may have proved to be a tipping point, as unemployment dipped to 5.6% and hiring finally reverted to pre-recession levels, according to a recent article from CDI Corp. Indeed, labor gains last year reached heights not seen since 1999.
Although companies are now in growth mode, many of them are having difficulty with retention – particularly in the professional sector, where jobs have become more plentiful and competitive. As one recruiter put it succinctly: “…many employers are still laboring under the same processes as they did when it was an employer-driven market.”
Some of the outdated practices include an overly long hiring process, inadequate (for the market) salaries and compensation packages, and an inability to “sell” the company, its brand and opportunities for advancement and development.
The article suggests that corporate recruitment and retention strategies will need to be reviewed this year “from the top down” in order for employers to retain their appeal to current employees, potential hires, and even contract workers.
A Talent Shortage (Believe it or Not)
A shortage of appropriate talent for (mainly) highly skilled jobs presents another persistent challenge for recruiters. A piece published in Forbes in late 2013 discusses the costs entailed in finding talented employees, especially in smaller firms that don’t have the resources of a Fortune 500 company.
A recurring theme cited here and in other studies about retention points to dissatisfaction with career development opportunities at many firms as a primary reason that employees don’t stay for the long haul. It creates an interesting paradox when companies don’t want to make significant investments in employees who they feel might leave in a more plentiful job environment; and staffers feel they need to look elsewhere when their employer won’t provide adequate training for them and invest in their future.
A Matter of Trust
Perhaps Billy Joel didn’t realize he’d be describing the talent-management environment of 2015 when he wrote that lyric some years ago, but it applies.
The Forbes article offers some helpful suggestions to help resolve the recruitment/retention debacle faced by hiring managers: employers need to focus their recruitment efforts on potential hires who are committed to the organization’s brand and culture; and employees need to know that the company will add value to them, and not just the other way around. Today’s job-seekers are looking for a meaningful and supportive workplace environment even more than a hefty salary.
In a job market that’s becoming more and more candidate-driven, companies really do need to take a good, hard look at their recruiting, hiring and retention practices in the coming year. Otherwise, they’re in danger of becoming just another revolving door or a stepping stone on the career path of an employee who may be a rising star – for another firm.