Practical thoughts on the talent drought

“Tens of thousands of jobs remain unfilled across the Triangle – more than 64,000 in fact – according to new data. And across North Carolina there are many more open jobs than applicants, reflecting a national labor mismatch with more than 11 million jobs going unfilled."- NC jobs mismatch: Openings exceed number of people looking for work—WRAL

Financial capital is generally plentiful and well-managed, but talent is increasingly scarce and is often poorly managed. For the foreseeable future, talent capital, not financial capital, will constrict growth. While some bristle at the term " human” or “talent capital", the moniker fits perhaps better than any other time in history. "Capital" is an investment, to be protected, nurtured, and grown. Without a talent pool, no boats rise.

The talent drought is projected to worsen through 2030 and will impact every business and institution, whether blue collar or white collar... skilled trades or healthcare...education or agriculture…food service or fintech.

(For an excellent article by EMSI on the factors of the sansdemic, click here)

So what can savvy leaders do to mitigate the risk and impact? There is no easy "one size fits all" solution to the challenges this environment presents but below are some areas for People (and other) leaders to proactively manage.

Mind your Culture

When asked about culture, leaders often respond with something about the company's mission, vision or values. Truth in fact, it is really about the behaviors and practices that enable employees to "fit in", be successful, and move up in the company. Culture permeates every touchpoint in the employment relationship. It is inextricably interwoven in recruiting, hiring, selection, development, career paths, mentoring opportunities, compensation practices, work policies, Diversity, Equity, and Inclusion goals, and many others. There are countless sources that outline that career growth, a sense of purpose, company reputation, and community involvement are all increasingly important factors to job candidates when deciding where to work. Culture, and therefore talent practices, needs to be aligned with the strategic imperatives of the company by supporting the right behaviors for success. While many companies measure employee engagement, engagement is really a byproduct of culture. Measure and improve culture in order to increase engagement, performance, and retention.? Even if some employees leave, they may find that the grass isn’t really greener and return.? In fact, your offboarding practices, including exit interviews, can reinforce a culture of valuing and respecting talent.

Be Agile in Talent Strategy, Acquisition, and Development ?

The past 18 months have demonstrated the importance of agility for organizations, for human resource departments, and for individuals.?We have drastically changed the way (and where) we work, and that ability to pivot remains paramount.? True talent strategy is enmeshed in understanding “where the magic happens” in the organization. Analysis such as Strategic Activity Mapping can assist in identifying critical roles and capabilities that disproportionally impact organizational performance and success.? This allows for the identification of potential risks to the business fueled by lack of development, competencies, or succession plans to support future growth, as well as risk mitigation for business disruptions.? Regular review of organizational structure ?ensures alignment with goals and removes unnecessary “drag” on delivery, which supports career growth, productivity, and engagement.? Workforce planning and targeted workforce development provide a future focus in terms of fueling business growth, but also professional growth through new skill acquisition and learning opportunities. Be vigorous in the development of job descriptions and success profiles... often, job descriptions contain "stock" requirements (like a college degree or 5 years experience) that really aren't material to success in the role. This unnecessarily makes the talent pool more shallow. There are an increasing number of programs and funding to assist employers with new skill acquisition and new labor force candidates, especially with underrepresented candidate groups, and local Workforce Development organizations will be happy to help. On-the-job training support, apprenticeships, and similar programs present a win-win for candidates and employers.

Understanding where the “world of work” is going, tapping in to appropriate resources, and modifying practices quickly and effectively will be a competitive advantage that fuels both organizational results and the type of working environment that supports talent growth and retention.

Evaluate and Inform Performance Improvement. No, really.

Volumes have been written about performance management and why everyone hates performance reviews. There are an endless number of models, systems, constructs, and opinions.?Regardless of which tool or program an organization uses, focus on behaviors and activities that align to organizational goals as well as those that outline individual development and career goals.?Make it less about the “check the box” event for forced rankings and more about desired outcomes. Equip managers and supervisors to have meaningful conversations by providing tools and training to facilitate progress and advancement- AND by modeling those behaviors yourself.?Research has repeatedly shown that people often leave their manager, not their organization. Invest in those who lead teams and include team development in their own performance metrics.

“Performance” also goes beyond the individual.?Establish robust and relevant human capital analytics and dashboards to inform faster and better quality business decisions, including competency shifts and development plans. And, with the staggering shifts and changes in businesses, the labor market, communities, resources, and thought leadership, this is an excellent time to engage in some HR self-reflection.?Consider a functional diagnostic to assess the strategic alignment to company goals and to the talent that supports achieving those goals.?Ensure the function is staffed and organized to support PEOPLE in capability-building and performance results…that policies, programs, and procedures designed to support the culture needed to succeed…that achievement is accelerated and growth is enabled…and that HR Operations are on solid ground.?As with other facets of life, you can’t take care of others if you don’t take care of yourself. In order to provide the best support, the People function needs to be healthy and aligned.

Need help navigating??Give me a call.

#talentdrought #thegreatresignation #culture #engagement #performance #retention #boomerang #workforcedevelopment #strategicactivitymap #hrdiagnostic #hrfunctional assessment #ANKURA #CAWD #EMSI