Market Changes and Trends
Change is inevitable! I can recall attending a meeting early in my career about an organizational restructuring the company I worked for at the time was about to begin. The restructuring involved centralizing a vast majority of positions and the meeting was about how human resources would be realigned to support the new structure. The executive who led the meeting made a statement that if some team members were not excited about the changes that were about to take place to sit tight because things would change again. And he was right! About two years later we went through a merger and several lines of businesses were restructured. Once again, the HR function was realigned to support the new structure. From my experience as an HR professional, each time there was an organizational restructure or change, it impacted our people and their decision to stay or leave. For some, the change brought about wonderful growth opportunities, a promotion, or the ability to relocate, and for others, it created a sense of uncertainty, or job loss.
The pandemic we have experienced for almost three years now has brought about a lot of change – for both employers and employees. At the height of the pandemic, many employers were eliminating positions, reducing staff, and learning how to adjust to a remote workplace. Two years later, we are in the mist of exponential growth and an employment market of less than 3.5%. Within two years, the pendulum has swung from an employer market to an employee market. Many employees are stepping back, reevaluating what makes them happy and pursuing opportunities that resonate with their purpose and values. Their perspective of work has changed and feeling connected to an organization’s mission, personal fulfillment and flexibility are at the top of the list. For employers, one of the biggest challenges has been not just finding talented people, but for the talented people they want, who may have several options and offers, to pick them as their employer of choice. And while a competitive salary and benefits are necessary to attract talent, it is not surprising that the alignment of an employee’s values with an organization’s values is one of the most powerful decision making factors. That same value alignment is also why many employees choose to stay with an employer. The bottom line is employees are less likely to entertain a conversation with a search firm or explore a new opportunity if they feel connected to the people and purpose of an organization.
The labor market will continue to change and thus the pendulum will continue to swing back and forth, from employer to employee market. Retaining exceptional people will always be important to organizations, regardless of the direction the pendulum swings. And regardless of the direction the pendulum swings, there are a few strategies that will help employers attract and retain their greatest asset – their people, during the best and most challenging labor markets:
Openly communicate and share information. Information is power and people want to feel empowered. Employees like to feel they belong, know what is going on, and contribute to the organization’s success. Being left out of the information loop makes people feel powerless and creates an opportunity for stories to be created. Make sure people know where you are going as an organization and the role they play in helping you get there.
Align employee values with organizational values. Use the interview process to discuss values and what gets the person excited about coming to work and doing his/her work. Asking questions like, “Tell me about a time you were so enthralled with what you were doing that time just seemed to fly by” or “Give me an example of something you did that was so much fun, it did not seem like work?” Studies have shown that when an individual’s work is aligned with their passion and values – the sky is the limit!
Grow your people! Find out what your employees are interested in, their career aspirations and support their growth. People want to be stretched and have opportunities to learn and develop new skills. Retaining talented people means helping them see a future within your organization – and a path to achieving their career goals and aspirations. Talented people will begin to explore other opportunities when they feel their dreams cannot be achieved where they currently work – or start to feel stagnant. Regular check-ins with employee are a great way to have proactive conversations about training and development opportunities, learn about the employee’s career interests and develop a plan to help get them where they want to be – and feel they are being supported along the way.
Organizations have a tremendous ability to influence talented team members to join and stay on their team. It requires being intentional about who you are as an organization, being clear about where you are going and understanding the talent you need to ultimately get you where you want to be. The recruiting and selection process becomes a combination of hiring people who not only possess the knowledge, skills, and abilities you are looking for, but resonate with your organization’s values and purpose – and can see themselves being a part of helping you achieve your vision. To quote from the book, Love ‘Em or Lose ‘Em, by Beverly Kaye and Sharon Jordan-Evans, “As folks are given more power to create, make decisions, and truly affect the success of the team, their job satisfaction (and your odds of keeping them) will go up. At the same time, your ability to compete successfully and accomplish your business goals will increase. You have phenomenal power to yield. Try it and see what happens.”