The Shifting Job Market: How to Attract and Retain top-notch Talents in an Employee Driven Job Market

 

In the business, different eras seem to usher in different focus. The 80s was the shareholders’ primacy, followed by the management theories: total quality and continuous improvement in the 90s and social responsibility for the early 2000s.

 

Today however, we are in an era where the employee is said to be king. Think with me for a moment, ‘how many of you have been trying to fill a particular position or role and cannot seem to find the right talent despite the various resumes, LinkedIn profiles and graduates you’ve interviewed?

 

Well, I know a few employers myself who despite having interviewed a number of seemingly well qualified employees cannot seem to find the ideal fit to fill the open role.

 

Leaving one to wonder, what is the issue with the current job market? Is it that there are no qualified employees or are people not willing to work any more or what really is influencing the job market trend?

 

Just like farming seasons, one might be tempted to argue that we have come to that season where it’s now the employee’s turn to call the shot. But before you embrace that notion although true, consider the impact of the pandemic, and how people’s lives have had to shift.

 

In addition to working from home, some parents have had to rethink their work schedule so as to accommodate homeschooling their children, others taking care of a sick family member, still some have moved to sub-urban areas where housing is more affordable given the virtual work status, while others employees have decided it’s time to focus on their health and well being.

 

Evidently, the pandemic has impacted not just lives, as we know it but has also brought about a shift. The shift from shareholder primacy to an era where the employee is the King is upon us.

 

Whether this shift is man induced like all other before, or certain ideas or ensues the pandemic it is unclear. Nevertheless the shift is upon us, and for the business owner your #1 focus is and remains how to attract, develop and retain the most qualified employees? As such, those who build their businesses with this market shift in view will have a competitive edge.

 

All things considered, one could argue that the employees are central to your business growth.  After all, economic tells us that labor– human capital is one of the scarce resources that warrant efficient and effective management if your business is to succeed.

To best understand the current shift, here is a statement from Nasdaq CEO, Adena Friedman, “The best path to sustainable earnings growth and corporate success is to attract and retain great talent, to provide value-added products and services to our clients, and to have positive and productive supplier relationships. Therefore, the two concepts–creating shareholder value and creating community value – go hand-in-hand.” Friedman’s thesis was simple: companies are not left to choose between their shareholders or society. They must serve both.”

 

Understand the Shift

Understanding that we are in an employee driven job market is a great start. Meaning that regardless of whether you are an employee seeking employment, or a business owner seeking the ideal candidate—today’s employment market presents us with opportunities that were unimaginable in pre-pandemic times.

 

For instance, depending on the nature of your business, you now have access to some of the most qualified individuals in the world. If you are in need of a digital marketer, you can now hire people from other states or countries for a fraction of what you could hire the marketer from your chamber of commerce network.

 

The Future of Work is here. Read More

 

Undoubtedly, the pandemic has been a catalyst for certain shifts we are experiencing today because many employees have had a chance to explore and examine what really matters to them.

 

Equally, businesses have had to rethink purpose, values, and culture in reorganizing how they might go about attracting, developing and retaining the right candidate to win and thrive in a precarious market environment.

 

According to McKinsey, aligning your business around these 6 strategic areas: purpose, values, culture, structure, decision-making and talent will differentiate you and position your business to attract the right employee or employer depending on who is looking.

 

It goes without saying that if you can build a brand that’s keen on growth and more specifically focused investing in her people’s growth, then you are likely have an edge over your competition. In this case growth serves as the key driver in attracting, developing and retaining top-notch employees who are willing to work for you with their blood sweat and tears.

 

 

So how might you go about attracting qualified talents for your business?

 

To start, accept that if you are ready to grow your business you’ll need the right expertise and now is the best time to attract some of the most qualified candidates.

 

In his book Scaling Up Compensation, Verne Harnish the Scaling Up guy details how you can leverage compensation as one of your tools to curve out a strategic advantage to advance your business forward.

 

Below are some of the key ideas he shares in his recent book. In my view some of these ideas are quite telling for a market that has shifted to become ‘an experience value based delivery’.

 

• Be Different: Align compensation with culture and strategy.
• Fairness not sameness: Create a framework of coherent and flexible pay structure.
• Easy on the Carrot: Be flexible and adopt an evolving compensation along the growth, and the growth cycles among other contributions.
• Gamify Gains: Leverage technology through play to elevate reward systems and build an engaging culture.
• Profit Sharing: Get your employees to think like owners through profit sharing.

 

In a nutshell, times have changed, and the reality that the employee is king is frankly quite refreshing. Meaning that both the employer and the employee now have to negotiate on a somewhat equal footing.

 

Why compensations can be daunting and yet an easy variable to move around as a strategic leverage. Consider that compensation is one of your biggest expenses, thus; designing compensation packages that are unique to your organization and culture can help attract, develop and retrain the best talents for a wining and thriving business.

 

 

Conclusion

 

While the new business shift offers more freedom and autonomy for the employee, it has also introduced more complexity in the business world. Leaders of business, CEOs, must thus communicate with effectiveness and swiftly when even the slightest of changes occurs or are expected.

 

The reason for this is that perception is reality. Thus if for whatever reason an employer is perceived in a negative right, say for instance; is said to be biased or out of compliance say in Diversity Equity and Inclusion (DEI) policies, this can negatively impact the business abruptly and dramatically.