Competition for talent after the Great Resignation: How private companies are winning

Amid economic uncertainty, people continue to be an organization’s greatest asset. Attracting and maintaining talent is crucial to building trust, delivering on the organization’s strategy and values, and achieving growth. Prioritizing your people is key, no matter the economic or geopolitical circumstances.?

Even in today’s disruptive environment executives remain laser focused on—and confident in—their ability to drive growth. In our most recent PwC Pulse Survey: Cautious to confident, executives, especially public company Chief Human Resource Officers (CHROs), told us they are responding to return-to-work expectations, the impact a hybrid workforce has on talent and knowledge building strategies, and attracting and retaining talent with the specialized skills needed to help the company meet its growth goals. And while these priorities are relevant to private and public companies alike, private companies are facing today’s business and workforce conditions—and the opportunities they present—in unique and meaningful ways.?

Private companies are typically hit harder by a recession, as they do not always have the same access to capital as public companies, or the same diversification of customers, suppliers and bankers. Although a majority (92%) of private company executives are moderately or very concerned about macroeconomic conditions—they still remain focused on implementing growth strategies to appeal to employees—and it appears to be paying off.?

According to the same PwC survey, only 34% of private companies are very or moderately concerned about the slower-than-expected return to on-site work, compared to 69% of public companies. This confidence is due in part to private companies being able to offer a more flexible work environment for their workforce. With remote opportunities catered to individual employee needs, private companies breed a close-knit workforce and a culture of opportunity, providing more access/visibility to executive leaders and an environment where close working relationships can flourish. As a result, fewer private company leaders (60%) say they are worried about resignations and “quiet quitting” than their public company peers (77%). When you consider that private and public companies are competing for talent in a very tight job market, it’s remarkable to see how connecting with colleagues and leadership can give private companies an edge.?

Here are four ways private companies can not only keep that edge, but deepen trust and continue winning the war for talent:?

1. Invest in technology to help drive efficiencies?

Building a strong digital foundation can improve talent retention and acquisition. Standardizing processes on popular digital platforms can help organizations attract experienced workers who want to continue using familiar systems and leveraging leading practices, and it can help standardize training and onboarding processes – efficiencies that benefit even the largest private companies.?

As private companies continue to evaluate their remote-work policies, new and more advanced technology can help them stay competitive in the market. Providing technology that employees can leverage to automate previously time consuming tasks is appealing not only for attracting new and more digitally-focused talent, but it’s also a benefit for your current employees who may be feeling pressure and fatigue from dealing with disruption.?

2. Provide continued learning and upskilling opportunities for your people

Upskilling your workforce is important to create diversity of thought and expertise and can strengthen how employees feel about being an important part of today’s private company experience. At our firm, and specifically within our Private practice, we've rolled out My+, a personalized experience to promote our people's growth and development in areas that are of interest to them. Through My+, our people have an opportunity to chart a customized career path that is tailor-made to support their ambitions and sense of purpose. Whether it be expanding their skills with another team through a short-term rotation or supporting a strategic initiative, our people are empowered to take ownership of their careers through new projects while growing with the firm. Wearing multiple hats in a given role can be a familiar concept for employees at private companies, who are well-positioned to gain valuable skills outside of their immediate responsibilities. Empower your people to acquire these skills—tailored to your organization’s needs and goals—that improve engagement and retention—and accelerate adoption of your digital transformation.

3. Take the pulse of your employees and don’t be afraid to change?

As employees’ needs and expectations change, the value proposition to attract and retain them changes too. Asking for feedback from people at various levels at the company, no matter your seniority, on a regular basis, helps you gain a better understanding of what is most important to different groups of employees at any given time. Both informal and formal feedback are helpful, however, keep in mind that feedback is only useful if you can document it and use it to enact changes that will enhance their workplace experience. Private companies have an advantage—they can be more agile to create the changes that their employees need—whether they’re at the individual level or the organizational level. Being heard creates tremendous value for employees and fosters a culture that allows them to reach their fullest potential.?

4. Lead with transparency and purpose to build trust

Employees are also interested in working for a company that is transparent about what it stands for. Private companies and family-owned businesses often have a unique advantage of an inspiring leader who is devoted to the mission of the organization and? supported by a value-driven culture. Those are the leaders that employees want to follow—and loyalty only grows when your people are working towards a greater goal with those they care about. Be sure to communicate often with your people about your company’s vision, purpose and values and how your organization upholds those values in every decision and action it takes. Help your employees at every level understand the role they play in driving your purpose and be honest with them about your organization goals and what it will take to achieve them. Some of your best champions are the informal leaders embedded in the organization that can rally around your values.?

Prioritizing talent attraction and retention cannot be overlooked. Even during times when many work environments are tense due to market volatility, economic conditions and politics – companies will need to fight extremely hard to win over the limited pool of available candidates, who often want to feel that they are part of something bigger than their individual roles. Private companies are uniquely positioned to foster trust with employees given their value-driven culture, flexibility, and environment to chart a career path that is unique to each individual. Regardless of where the economy is headed, private companies can stand out from the crowd by continuing to prioritize their people and creating a work environment and experience that helps them feel engaged, driven and included.?