Despite ongoing economic uncertainty – and the possibility of a recession – most CHROs report that their companies are nevertheless having trouble filling open positions. Employee recruitment and retention remain at the forefront as a race for talent takes hold in 2022.
We asked CHROs across Evanta communities what they think is causing the talent shortage and what they’re doing to combat it. Here is what nearly 200 HR leaders told us about talent issues and the impact on their outlook for the remainder of the year and beyond.
What’s Causing the War for Talent?
75% of CHROs indicate that their organization has more open positions now than in years’ past, with only 19% reporting that the current level of open roles is about the same as past years. When asked what they attribute this to, many CHROs believe that the supply and demand for workers is out of balance (59%). Other causes cited not far behind are the evolution of the new world of work (55%) and a continuous cycle from the Great Resignation (53%).
For the 16% of HR leaders who said there was another cause, these are some of their responses:
Also a catch-up following downsizing during COVID as business demands ramp up.”
It’s a rethinking/reflection of the employee value proposition.”
The supply and demand are out of balance for certain skills.”
How Long Will It Last?
33% of CHROs think the talent shortage “will remain this way for the foreseeable future.” Close to an even percentage of CHROs believe this phenomenon will last for 12 months or more (26%) or for 6-12 months (24%).
What About the Economy?
When asked if they think that finding and recruiting talent will be an issue even if there is a recession declared later this year, 58% of HR leaders said yes, the talent shortage will still be an issue.
What Are Companies Doing to Recruit Employees?
With regard to whether their main challenge is recruiting or retention, 61% of CHROs say that recruiting new employees and retaining current employees are equally challenging right now. They cite promoting company culture (84%) and offering flexible work arrangements (79%) as the top two ways they are recruiting new employees.
Interestingly, the top 3 recruitment strategies are exactly the same as what HR executives reported they were doing in our Great Resignation survey in October last year.
How Are Companies Retaining Employees?
There are three, clear strategies CHROs are focusing on to retain current employees: improving company culture and employee engagement (83%), reviewing compensation and benefits (76%) and offering more flexibility (75%).
In a similar vein to recruiting, the top 3 retention strategies are the same as what CHROs told us they were focusing on in our Great Resignation survey in October 2021 – except that reviewing compensation has moved up to the second area of focus from the third spot previously.
Is This a Sequel to the Great Resignation?
We asked CHROs if they were thinking about the race for talent differently than the Great Resignation. Here is a sample of their comments:
Slightly. We have to redefine our attraction and retention strategies and build a value proposition that takes employees’ whole lives into account. That was something we honestly did not focus on, and it showed. People made decisions with their feet.”
The Great Resignation came primarily as a reaction to people realizing that you should ‘work to live’ not ‘live to work’... So if you address people’s ability to get the right balance and be flexible around their life needs, we are hoping to stem attrition.”
The Great Resignation was a cultural shift that we can’t control. The war for talent is a competitive endeavor that we can affect.”
There will be a long-term labor shortage, and we have to compete at a higher level… A recession will only be a temporary time out from the labor shortage.”
If you are a CHRO navigating the war on talent, explore an opportunity to collaborate with your peers or join a community at Evanta.com.
Based on 180 responses to Evanta’s Community Pulse Survey, July 2022.
by CHROs, for CHROs
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