How to bridge the gap between the budget you have and the talent you need

Let’s get set for a successful 2023

Welcome to January’s newsletter.

The press has been awash with stories of an economic downturn of late but with the residue of the pandemic still affecting the way people work, the world of HR finds itself in a unique position.

Forces collide like never before as we sail into uncharted territory, but your people people will be pivotal in getting you through to the other side. Here’s why.

What the talent squeeze may mean for you

On one side, inflation and the threat of recession put pressure on budgets but on the other, a reduction in the workforce pool and high demand for cutting-edge skills means competition for talent in some areas still remains hot. This against the backdrop of cost of living concerns which cause some to play it safe and stay put where they are.

How can you employ and retain the people you need while cutting your cloth accordingly? Getting this right means you’ll have the strength and agility to succeed through a recession and then pull ahead when the turnaround comes. Get it wrong and your business may not survive.

Regardless, stay committed to strategy

It’s important to note that it’s not all doom and gloom. In many sectors, the employment market is starting to soften and the economic slump looks like it won’t be as long or as deep as first forecast.

Regardless of what unfolds as we move forward, this is clearly not a time to be shelving strategy. It’s a time to invest so that we have the best people in place when things improve. We need to be wary of making hard and fast decisions which affect the long term, when the landscape may shift again.

Slashing budgets and other short-term thinking won’t deliver the performance you’re looking for.

So go beyond salary like never before

We know that high performance goes hand in hand with:

• A true sense of purpose.
• Genuine equality, diversity and inclusion.
• A partner in their career.
• Flexibility and respect for the whole person.
• A sound company culture.
• Reward and recognition that mean something.
• An environment that supports mental and physical well-being.

None of these things are likely to make a dent in your salary budget but they will be instrumental in making sure you have the people you need to meet your goals.

How your HR department will need to evolve

Being dynamic, starting the conversation and steering it towards a vision, the transformation starts in HR. Switching up from an administrative hub to a source of empowerment for all your employees, they’ll develop the systems and IT solutions that will enable flexible working, recognition and career development.

Is your HR department ready? Who will be there to direct them?

Delve deeper?

Find out about the six key skills your HR department will need to have in place in the?blog this month.?If you’re in a place where you’re feeling stuck between a talent shortage and budget cuts, arrange a?call with Kerry today.