Austin, TX – April 19, 2023: Economic uncertainty and rapid digital transformation have left businesses scrambling to reconfigure talent plans in a tight labor market. According to Beamery’s report, “Navigating The Changing Talent Landscape,” the biggest talent challenges U.S. business leaders foresee in the next 12 months include: determining flexible workplace models (66%), closing skills gaps (59%), quickly adapting talent approaches to changing market conditions (58%), and attracting and retaining Gen Z workers (53%).
Talent mobility can reduce attrition, but barriers remain for employers
Retaining top talent is a major concern among business leaders, resulting in 72% worrying about talent loss. However, less than half (49%) think their businesses actually understand why people leave. Business leaders estimate that, on average, 35% of talent loss could be prevented through better talent mobility initiatives that allow talent to move more freely within their organization.
However, before talent mobility can be properly addressed, certain barriers must be overcome. Such hurdles include: a lack of visibility into internal opportunities for candidates (51%), a lack of intra-organizational networking and collaboration opportunities (47%), and existing bias of what an internal candidate can or cannot do based on their current role (46%). Given such concerns, 81% of business leaders think that today’s employees would say it is easier to get a new job externally rather than find a new internal role.
A skills-first hiring approach closes crucial gaps, but business leaders still need convincing
Businesses are also struggling to find the skills they need to be successful, with 59% of leaders reporting increasing skills shortages as one of their biggest talent challenges. Three quarters (75%) think a skills-first approach to hiring, which focuses on a person’s capabilities and competences more than their formal education and time spent in a previous job, can better support business growth in their organization. An overwhelming 87% agree that skills-first hiring can better align the needs of employers and employees, but more than half (51%) feel a change in mindset among leaders and hiring managers would need to evolve in order to enable such an approach to talent.
To attract and retain tomorrow’s talent, address their needs today
In order to support business growth, 74% of respondents say it is of the utmost importance to attract, develop and retain the next generation of talent (Gen Z). However, only 57% say business leaders fully understand what the next generation of workers want from work. The majority (85%) say the demands of Gen Z have fueled a much-needed rethink of how work works in their organization, and 97% think adapting talent approaches based on the needs and expectations of Gen Z will have a positive ripple effect across all generations of workers.
To address the next generation of talents’ expectations, areas that need to adapt include: providing collaborative workplace design (66%), implementing flexible benefits and rewards (64%), developing more engaging internal communication (64%), creating a culture where every employee is treated fairly and equally (62%) and providing self-directed learning opportunities (62%).
“Employee demands for both flexible work and clear insights into career growth opportunities persist, but an uncertain economic climate is making it difficult for leaders to effectively plan for their talent needs,” said Abakar Saidov, co-founder and CEO of Beamery. “As retention issues and skills shortages continue to plague businesses, the competition for talent means leaders need the widest talent pool possible – and the capabilities to identify the skills they need. Those who embrace a skills-first approach will be able to uncover previously overlooked talent, ultimately strengthening their workforce.”
713 interviews with Business Leaders in the UK (255), US (253), Australia (103) and Germany (102) in organizations with 1000+ employees across all sectors were conducted during October 2022 by Insight Avenue.