What’s Next in Talent Retention and Acquisition
By Pam Thornton
The white-collar job market that spiked a boom during the pandemic, is now experiencing a slowdown and being coined as “The Big Stay.” Current job openings are less than the 9 million reported in 2023. With hiring on the decline, employees are likely to choose to stay in their current positions rather than risk a job switch that might not offer a significant increase in pay and job title. This trend is helping to reshape how companies’ approach both talent retention and acquisition.
Is it realistic to believe that this period of low attrition is going to be here for a long time? Many people believe that the” Great Reshuffle 2.0” is right around the corner. If history repeats itself, this period of low attrition will be followed by a period of high attrition. We’re starting to see some early signs of this very phenomenon. According to LinkedIn, nearly 85% of people in the U.S. are still considering changing jobs in 2024. People may be apprehensive to take the leap, but the thought is definitely on their minds.
If we’ve learned anything over the past 5 years, it’s that when we need to shift gears, we need to do it fast. Historical trends show that attrition rises as confidence in the economy improves. Employees who have felt “stuck” during the pandemic may consider job changes as the economy stabilizes. It’s not a matter of IF my friends, it’s just a matter of WHEN! The only way to prepare is for companies to have a plan for the WHEN.
We need to balance the priority of talent retention and acquisition to be successful now in anticipation of what inevitably is to come.
Talent Retention Strategies
Companies should be shifting their focus from retaining employees to actively enhancing their retention strategies. Investing in employee growth through innovation and talent development should be the main priority. By providing opportunities for ongoing education and skill enhancement, companies can foster long-term loyalty among their workforce, which not only helps in retaining employees but also in building a stronger company culture. With a less urgent need to focus on employee turnover right now, organizations should explore directing more resources towards specific retention strategies.
Talent Acquisition Trends
The challenge of finding high-quality talent and the fact that we have a shallow talent pool remains, which continues to make it difficult to find the right people when we have open positions. Some companies are focusing more on local hiring rather than global recruitment, particularly as return-to-office policies push employers to seek candidates who are willing or able to work on-site. However, having too narrow a localized approach could jeopardize access to the best talent, especially in specialized fields where expertise might be geographically dispersed.
This period of “The Big Stay” offers businesses an opportunity to strengthen their internal culture and carefully plan their future workforce needs. We should be taking the opportunity now to be prepared for what the future holds. You don’t want to find yourself in the position of asking: “Why is it taking so long for us to hire people?” Or “Why are so many good people leaving?”
By taking some simple steps now, companies can be in a stronger position to retain and attract the right people for the inevitable next reshuffling of talent! What steps is your company taking to adapt to the changing landscape of employee retention amidst the “Great Reshuffle 2.0?”