Work gets done through the action of people. That’s why winning the war for talent, and especially the professional talent that is able to leverage expert knowledge and state-of-the-art nonhuman capital, is critical.
A national survey reported this month by the Society for Human Resource Management indicates 80 percent of companies expect to face talent scarcities in 2017. Moreover, it’s not just in niche technical fields such as IT any longer. The talent shortage has become a more general feature of our economic landscape over the past two to three years.
HR strategies for addressing these issues include: sharpening the employer brand in order to attract talent; investing in high-potential development programs to retain and groom the talent you already have; and focusing on ways to attract particular segments of the workforce, e.g., millennials, older workers and diverse candidates.
In smaller firms, HR resources are very limited, so key leaders must play an even larger role in HR duties. It’s their vision, attitudes, actions and attentions that will do most to determine the quality of the talent they attract. So, let’s look at the shortage issues and consider the implications for leadership.
Deconstructing shortage issues
n Pew Research reported that over 10,000 baby boomers would be retiring every day for the next several years. But there is more to this generational theme. Among them, some boomers will delay retirement due to financial considerations, but also because they simply prefer to stay active longer than older adults in previous generations. Moreover, highly educated boomers tend to be more tech savvy than stereotypes suggest.
n As unemployment rates fall, people have more choices. Millennials are more likely than boomers or Gen Xers to leave if they don’t see near-term opportunities on the horizon. Recent Korn Ferry research found that 73 percent of job switchers cited “lack of challenge” as the prime reason for leaving (not money).
n Employers complain about a lack of basic skills (computer skills, reading and math), but they’re even more concerned with a dearth of the applied skills needed to operate the business and build productive capacity: critical thinking and problem solving; leadership; written communication; and teamwork and collaboration. Most achievement-oriented workers are eager to build these competencies.
Adaptive leadership action
Leadership is about connecting with people, engaging them in purposive action, helping them see their role and significance, and understanding their needs for challenge. The tighter the market for talent, the more these leadership actions make a difference. By doing this, you give those you lead reasons to care and stay, and opportunities to stretch and grow.
Get past aging stereotypes. We are a culture that overvalues youth. As we know, there are as many differences among older adults as there are between them and their younger peers. Be pragmatic about what needs to be done and managed, and what kinds of collaboration are needed. Evaluate candidate potential based on substantive capabilities.
Invest in development. Get leader-development coaching and human resource consulting help along the way. This external expertise can be more valuable in any case, but especially in a small firm. Adopt a developmental attitude by first applying it to yourself, then promoting it with those you lead. It attracts talent, and frames challenge and capacity building.
If you focus on these three priorities as a leader, your identity and the culture you engender will define and deliver on your employer brand. It will feel authentic, attractive and energizing to those you hire. They’ll want to stay and be a part of what you are doing and building, especially if you provide room for them to cultivate their own voice and identity as a part of the vital whole.
William P. Macaux is principal of Generativity LLC, an East Greenwich-based management psychology consultancy specializing in leadership and organizational development.
