There are still talent shortages, so don’t get caught lacking

In 2023, talent and skills shortages dominated headlines. Similar to what happened with the pandemic, just because it’s been going on for some time doesn’t mean it’s over, and organisations must still be equipped to manage issues.

Retention should be on every employer’s mind amid a tight talent market. The ability to hang onto skilled workers is what can make or break a company. According to leadership specialist Anna Glynn, retaining valuable employees requires more effort than just wages and benefits.

“In today’s job market, retaining top talent requires more than just pay and perks. Creating a psychologically safe and positive working environment, where workers feel valued and supported by their peers and leaders should be the top priority. Offering regular feedback, development opportunities and a clear long-term career trajectory further reinforces the organisation’s commitment to employee growth,” Glynn commented.

“Empowering workers with autonomy over the tasks they do, where and with whom is also essential for retention. Recognising and rewarding employees for their contributions cultivates a sense of appreciation, too. These strategies not only enhance employee wellbeing and prevent burnout but also foster a culture of engagement and satisfaction, which encourages retention even amidst a tight talent market.”

Talent attraction should also take top priority, as you want to stand out from the crowd. Not everyone has the capacity to offer competitive wages with inflation and cost-of-living troubles being felt by everyone. This is where other offerings can help employers to distinguish themselves from the rest.

Glynn continued: “Every worker has unique priorities, and competitive wages aren’t always the primary factor in their decision to join an organisation. When looking to attract top talent, a compelling employee value proposition (EVP) should address the needs of employees.”

“Top talent are looking to work for an organisation where they can align their individual purpose with their employer’s mission so they can derive meaning from their roles. Many want employers who foster their development and empower them to reach their full potential, so organisations must offer avenues for ongoing learning, growth, and development through both formal and informal methods. Your EVP should emphasise the autonomy that can be provided in their roles, which may or may not include flexible working arrangements. Workers also want to be part of a supportive and inclusive work environment that can demonstrate how their wellbeing will be a priority so they can feel good and function well when on the job.”

Engagement is a crucial aspect of a happy worker. By maximising employee engagement, leaders can help to keep them thriving and satisfied.

“Employee engagement significantly influences job satisfaction and organisational commitment. When employees become disengaged, the likelihood of turnover increases, which is a concerning trend on the ride in Australian workplaces. Disengagement often stems when employees feel they lack sufficient resources or when their demands become overwhelming, leading to burnout, which can also escalate turnover rates,” said Glynn.

“Engaged employees can serve as advocates for your organisation, sharing positive experiences with potential candidates and enhancing your brand. Moreover, engaged employees are more likely to demonstrate high levels of productivity, creativity, and innovation, which can contribute to the organisation’s success and attractiveness to prospective employees. Furthermore, new talent are looking for supportive work environments [that] empower their employees to be at their best through engagement initiatives.”

There are various ways to drive engagement. According to Korn Ferry, the top five are:

1. Strong strategic compass
2. Abundant growth opportunities
3. Sense of worth with effective rewards
4. Measure of employee autonomy
5. Supportive and inclusive community