Today there is a War for Talent. Just google that and you will see article after article with that in the title. There are a ton of metrics that HR professionals are looking at and constantly trying to figure out how to stay ahead of this. But for organizations where people are the product, this is a huge deal because people are the business. But more importantly, the BEST people are your competitive differentiation. But the game has changed over the last few years and finding and retaining people is more important than ever.
So why is this a big deal now?
It used to be that you only looked for another job when you needed a job. Either you lost your job or you hated it so much that you went looking for another job. The other thing that changed is that the definition of loyalty is not what it used to be. After several economic crises and changes in the market (2000 tech bubble and 2008 housing market crash) employees learned that just because you were loyal to the company did not mean your job was secure. Employees are not as loyal as they used to be. In fact, 25% of Millennials believe that staying at a job for seven months indicates they're loyal; Boomers believe that number is five years (Ultimate Software.) And by the age of 35, 25% of workers have held five jobs or more. For workers ages 55 and older, 20% have held ten jobs or more (CareerBuilder.) People are now more open than ever to a new job and in fact, 51% of workers who currently have a job are either actively seeking, or open to a new job. This means fully 71% of all workers in the U.S. are "on the job market.” Employers no longer have the power, employees do. So there is more competition to find, hire and keep the best resources that are the key to your organization.
How are some of the best organizations tackling finding and keeping talent?
They are fighting for talent and fighting to keep talent with a broad talent strategy that includes,
1. Hiring the Best Talent Faster Than the Competition
The days of having your pick of the litter of great candidates are over. Remember, if they are a great employee, you can bet you are not the only one trying to court them and convince them that your organization is the best place for them. It is no longer the "why should we give you a job", now it’s the "here is why our organization will be a great place for you to build your career." This means we have to think about our hiring process a little different that we might have in the past.
2. Managing Performance for Employee Growth
There is a myth that you need to give people more money so they feel appreciated and stay with your organization. The truth is 89% of employers assume that their employees leave for more money elsewhere, but only 12% of employees actually earn more from their next company. What many don't realize is that praise and commendation from managers was rated the top motivator for performance, beating out other noncash and financial incentives, by a majority of workers (67%) (McKinsey.) So how are your employees recognized or promoted? Does it happen at random intervals? Do managers regularly review the performance of their people and teams and if so, how is this balanced across the entire organization?
3. Developing Talent and Planning for Succession
41% of employees said they would need to leave their current employer in order to advance their careers. (Towers Watson). Great leaders aren’t born, they are built. And when you think about the next great leaders within your organizations, where will they come from? It is key for organizations to identify their top performers to groom and coach to become the next leaders of the organization. Do you know what the average tenure is of key roles in your organization? Who are the current key leaders and if they left the firm who is the next logical person to step up? Many organizations do not have a plan for this and when there is a key opening in leadership they are forced to look outside. That can take key time because new leaders must first learn the business before they are ready to lead.
4. Leveraging Technology to Manage Talent
I just spoke with an organization that was managing their potential candidates in an excel spreadsheet. That’s not going to help anyone win the war for talent. Look at it this way, no one would enter a war without the latest weapons and technology, so why would you do so in the war for talent? Remember what is at risk in this war: your ability to attract, develop and retain top talent. The good news is there is no shortage of cutting-edge technology for managing talent.
This post is based on the just released book, Deltek Special Edition, Talent Management for Dummies. For more information, download the full book here.
Make sure to register for the remaining webinars in the series
June 16 Finding Qualified Talent Fast
July 21 Retaining Top Talent
August 9th Investing in Your People
September 14 Leveraging Technology to Manage Talent
Read more by Michelle. Connect with Michelle on LinkedIn.