The UK is currently struggling to recruit the right talent for the right roles. Coming out of the period of uncertainty and a revolution in the way of working that we’ve felt since the pandemic, 76% of firms questioned by the British Chambers of Commerce reported difficulties in recruiting.
This struggle to find the best talent combined with the tough economic times currently facing the UK highlight the importance of effective talent management. Making sure that the right person is in the right role and that businesses are able to keep their top talent is going to be crucial to a firm’s ability to not only survive the recession, but also bounce-back quickly. Businesses need to take steps to streamline their resourcing efforts proactively and rationally rather than making hasty knee-jerk decisions.
Talent effectiveness and retention
Recruitment challenges are forcing businesses to think differently. They’re having to look at ways to cover the necessary work and, in some instances, restructure responsibilities. But they’re also starting to look at how they can make sure they keep their high performers and safeguard their future in the business.
Employee turnover rates vary depending on industry, with the technology and banking sectors averaging around 18%. Those statistics on their own wouldn’t be a cause for concern but when combined with a longer time frame for filling the roles, on average 36 days from interview to offer, it can lead to a talent management nightmare. Not only that but it can take a new employee 1-2 years to achieve the same levels of productivity as an existing employee.
It’s logical, then, that businesses should be looking at capitalising on their top talent. McKinsey surveyed 600,000 workers and found that high performers are 400% more productive than average ones. Focusing on that subset of talent to ensure their progression, support and engagement is essential to business success during tough economic times.
When it comes to retaining talent and maximising their performance, learning and development is pivotal. Not only is it valued by the employees themselves with 93% of employees stating they would stay at a job longer if it invested in their learning and development, but there’s also a significant business benefit. When comparing that to the negative impact a low performance employee makes – with the cost of disengagement and absenteeism reaching £13.49 billion to the UK economy – it’s obvious that managing poor performance has to be part of an overarching talent effectiveness strategy.
Streamlining resourcing efforts
Streamlining traditionally brings the idea of redundancies and reduced numbers. While that may end up being an unfortunate reality in some situations, streamlining can also mean looking at how resources are managed. That could be not automatically replacing roles on a like-for-like basis or looking internally for promotion opportunities instead of undertaking an external recruitment process. Additionally, organisations can look at streamlining their recruitment process to be as quick and efficient as possible, allowing them to recruit the talent they really want as recent studies have shown that the top candidates are usually off the market in 10 days.
Introducing technology and automation where relevant, robust job adverts, strong employer branding, defined screening processes and a clear onboarding process are ways to ensure the talent you do recruit are suitable and ready to go.
Looking to the future
No-one quite knows what the future holds with Britain on course for its fastest return to a recession since the mid-70s. That level of uncertainty can cause panic and bad decisions, however with the economic climate and unique labour market entering an era unlike the past, what organisations need to remember when thinking about future plans is that talent needs to be at the heart of every decision.
Talent effectiveness is about putting the right person in the right job at the right time. Using their strengths to an organisations advantage. That may involve tweaking job responsibilities or tailoring a way of working but that flexibility and robustness is what will see a business through tough economic times.
In the aftermath of the Financial Crash of 2008 there was a detrimental impact on talent attraction during the bounce back, caused by the large-scale cutbacks that were made. Employers need to learn from those mistakes and keep talent effectiveness and performance development at the forefront of their minds. Making sure that top performers are utilised fully, duplicated roles are streamlined and resources are continually evaluated to be fit for purpose will be crucial in the coming year.
One way to evaluate just that is through our Resourcing Effectiveness Assessment. Delivered by our specialist consultants this audit provides a detailed analysis and recommendations to maximise your resources and workforce planning.
Contact us to find out more.