“The Great Resignation” is sparking different calls-to-action for everyone. For employees, it’s validation that their perspective shift during the pandemic is shared with their peers, and that they have the power to choose better company cultures. For companies, it’s a wake-up call to update their company culture and hiring processes for the modern worker.
TechUnited:NJ CEO Aaron Price sat down with RSM subject matter professionals Marni Rozen, Director, Management Consulting and Jennifer Hartman, Human Capital Management Consultant to discuss these seismic shifts in recruiting. RSM serves clients during the entire employee lifecycle, from recruiting talent to onboarding to succession planning and offboarding. They focus on the future shape of what Human Resources (HR) can look like, asking questions such as “How can companies foster more employee engagement as working culture shifts?”
Read below for Rozen and Hartman’s insights on the current talent landscape and the future of recruitment & retention.
What is contributing to the Great Resignation?
The four main factors contributing to the Great Resignation are unemployment, job openings, turnover, and hiring. These factors are intertwined, and have been experiencing a major flux in recent years, creating a hot hiring market that favors the employee. In November 2021, 4.53 million Americans quit their jobs, leaving a record amount of jobs open for new prospects. Because of this increased demand, prospective talent can be very selective about where they want to land.
The pandemic has sparked a shift in employees’ priorities. Workers are placing more focus on work-life balance, company culture, and company values now more than ever before. Talent knows their worth, and aren’t willing to settle in a work environment that doesn’t align with their values.
What are some creative approaches companies are taking to land and retain talent?
“Culture can be both a selling point, and also the differentiator for retaining talent,” says Jen Hartman. There needs to be more investment in understanding the importance of company culture, now more than ever.
The turnover rate in the technology world is up to two times higher than most other industries. The shift to remote work is not unique for technology businesses, so they are forced to push even further to differentiate themselves to the talent pool. This includes inflated base salaries and improved equity packages. But in addition to better compensation, understand the value proposition for your workforce. For example, the nature of work in the tech industry often leads to worker burnout. If engineers on your team need focus time, don’t throw meetings to them throughout the day. Do what you can to create a supportive and thoughtful culture.
How do employers attract and support a more diverse workforce?
“Diversity is becoming paramount for organizations to think about,” notes Marni Rozen. DE&I (Diversity, Equity, and Inclusion) is a growing HR focus. According to Forbes, companies that invest in a culturally-diverse workplace are 33% more likely to outperform companies that don’t. One of the top ways to attract a diverse workforce and retain employees is to create clear career growth paths.
“Gen Z is thinking about career advancement, but it’s not just the linear model…it’s about talking through skills, and how to move laterally,” says Jen Hartman. Talent today doesn’t just want a good welcome package, but a continuous investment in their future.
Employers today now have the ability to open up their talent pool globally, but putting structure in place to track tax compliance is crucial. Attract the best talent by demonstrating your business’s follow through plan for success. Share the options for continued growth, education, mentorship, and support with your new hires as well as your long-term pillars.
How can companies move beyond the “five year plan” question for candidates?
It’s critical for leaders to understand that career development is an ongoing process. Companies should start focusing more on development as an ongoing process of mentorship, rather than a set goal. Ask candidates what their passions are, which skills they want to develop, and what gives them energy. Show them possibilities in your company that they may not have previously envisioned.
Thanks again to RSM for powering this post! For more content on the future of work, follow TechUnited:NJ on all platforms: