Recruitment and retention have been a major challenge for companies in all sectors over the past five years. Despite low unemployment rates in many countries, companies need help attracting and retaining top talent. This article will explore why recruitment and retention have been problematic and what companies can do to address these challenges.
It’s no lie that the United States experienced a massive layoff earlier this year. But let’s look at the other side of the coin. What makes employees want to seek a job or leave their current position? The answer is more complex than it seems.
Today’s generations (Gen Z and Millenials) seek more than just a good salary and work environment. That’s just the basics.
It is true that now companies give more incentives and benefits than before. But when you see the reality and enter companies with “great benefits,” everything becomes different, and sometimes it turns out to be a lie.
Another important aspect is that we are facing a recession, an economic and social part that does not benefit employers and employees.
Recent studies show that 55% of interviewers, commented that the recruitment process has become more and more difficult. Many companies do this to get the needed talent, but employees find it tedious to follow many protocols and be rejected multiple times.
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1. The War for Talent
Competition for top talent has become increasingly fierce in recent years. As technology advances and industries evolve, the demand for workers with specialized skills and experience is growing. This has created a “war for talent” in which companies compete for a limited pool of qualified candidates. As a result, companies need help attracting and retaining top talent.
As a result, many young people are now challenged to specialize in many areas for a better chance of finding a job.
2. The evolving Workforce
The workforce is changing, with younger generations entering the workforce and older generations retiring. Millennials and Gen Zers have different expectations and priorities than their predecessors, and companies must adapt to these changes to attract and retain top talent. This means offering flexible schedules, professional growth and development opportunities, and a positive work-life balance.
It has been proven that home office work is better than going to an office. It is also proven that burnout exists and that it can be solved with fewer working hours and still give the same results.
Young people are looking for a balance rather than giving their life to a job. They are looking for a way to live a quieter life without being in a hurry and providing the best of themselves.
3. Lack of Engagement
Many employees feel disengaged from work, leading to lower productivity, higher turnover, and decreased job satisfaction. Businesses need to create a positive work environment that fosters engagement and motivation. This means giving employees a sense of purpose, providing opportunities for growth and development, and recognizing and rewarding their contributions.
4. Insufficient Compensation and Benefits
Compensation and benefits are important factors in attracting and retaining top talent. Companies that offer competitive salaries, comprehensive benefits packages, and other perks are more likely to attract and retain the best employees. Companies must be willing to invest in their employees to make them feel valued and motivated.
As I mentioned at the beginning of this post. It’s not just about giving a living wage; it’s about providing a competitive salary commensurate with the candidate’s skills and abilities.
Many companies offer a salary below the competitive salary to “reduce costs” when the only thing they will achieve is that in a few months or less than a year, their new employee will leave because they cannot grow since they did not offer a competitive salary from the beginning.
5. Poor Company Culture
Company culture is another important factor in attracting and retaining top talent. Employees want to work for companies with a positive, supportive culture that values diversity, inclusion, and collaboration. Companies should create a culture that fosters open communication, encourages innovation, and empowers employees to take responsibility for their work.
Being in companies with a healthy organizational culture means you will deliver the best results because your environment allows you to do so. The opposite happens when many problems occur, and your performance is different.
You can do things differently!
Recruitment and retention have been problematic for companies in all industries over the past five years. Competition for top talent, changing workforce demographics, lack of engagement, inadequate pay and benefits, and poor company culture are reasons companies need help attracting and retaining top talent.
To address these challenges, companies must adapt to the changing workforce, create a positive work environment, offer competitive pay and benefits, and foster a positive company culture. In this way, companies can attract and retain the best employees and position themselves for success in the future.
One thing young people are looking for is to lead a balanced life. To have the availability to use their free time as they want and to work the hours necessary to achieve good results. Time is now more valuable, and it is proven that young people prefer to travel and see the world to continue learning and growing. It is not a bad thing; you can use it to your advantage and find incentives to motivate them to keep working.