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Future Of Work: The War for Talent Is On, Can Companies Head Off The Loss Of Talent?

byCecilia Amador de San José
June 18, 2021
in Workforce
Reading Time: 4 mins read
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Future Of Work: The War for Talent Is On, Can Companies Head Off The Loss Of Talent?

Reports have found that companies are likely to experience higher levels of resignations in the next 6-12 months. 

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  • 85% of HR decision makers believe the war for talent has grown more competitive over the past 12 months. 
  • Reports have found that companies are likely to experience higher levels of resignations in the next 6-12 months. 
  • To head off talent losses, companies need to respond to current worker needs and demands, including better pay, growth opportunities, and flexible work arrangements.  

Recent reports have found that companies are likely to experience higher levels of resignation in the next 6-12 months. This is prompting companies to rethink their talent attraction strategies and prioritize retention strategies, including raising wages, strengthening company culture, and offering flexible work arrangements.  

In its recent report, “Recruitment, retention, and culture: assessing the pandemic’s impact” XpertHR Cendex found that “more than one in three (31.8%) organisations expect to see more resignations in the next 4-6 months, while just under a quarter (24.8%) of organisations anticipate more employees leaving over the next 7-12 months.” 

As a result, Cebex argues that “the role of HR has extended far beyond administrative and compliance capabilities”, as employee expectations and priorities have changed.  

HR leaders are in a unique position where they can directly impact an organization’s success in the future; HR departments will need to spearhead positive change and put employees first.  

There’s a Hiring Boom in the Horizon 

Cebex believes there’s a hiring boom in the horizon as vaccine rollout pushes forward, as countries emerge from lockdowns and restrictions, and as business confidence returns.  

While 2020 was marked by mass redundancies and pay cuts, 2021 will be marked by hiring opportunities.  

While new job opportunities are good news and a strong sign of economic recovery, Cebex found that “85% of HR decision makers believe the war for talent has grown more competitive over the past 12 months.” 

This means the war for talent is on; and it is very much a key challenge for organizations looking to hire now and in the future.  

Can Companies Head Off the Loss of Talent? 

The war for talent is as much about talent attraction as it is about talent retention.  

“Successful organisations have long understood that an engaged and motivated workforce makes for a better bottom line and the current crisis has only reinforced the value of human capital. As business leaders look to recover and rebuild from the events of the past year, winning the war for talent will be as much about nurturing and motivating existing employees as it will be about hiring new candidates.” 

Over the past 18 months, many workers stayed put in their jobs due to successive lockdowns, mass redundancies, and deep economic uncertainty; however, the time has come for many to move forward and rethink their employment situation as the job market opens.  

To head off the loss of talent, some companies are responding to employee needs and demands. So, what do employees want? 

  • Seven out of ten (69.6%) organisations in the UK rated flexible working as the biggest priority among candidates,  
  • Two thirds (66.9%) said the organisation’s work from home policy was the leading consideration.  
  • Pay ranked third place (55.5%) on candidates’ wish list. 
  • Nearly a third (30.4%) of UK organisations reported candidates demanding more money; at the same time 41.2% of organisations said candidates had grown more realistic about salary expectations since the onset of the pandemic.  

Companies that respond to this by increasing salaries, allowing for flexible work, and implementing permanent remote work policies will likely come out on the winning side of the talent war.  

Those, however, like that expect employees to return to the office full time and are threatening with pay cuts for employees that work remotely are likely to see an exodus of talent. A risky move, considering the percentage of workers leaving for new opportunities is at its highest level in more than two decades.   

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Tags: Career GrowthFUTURE OF WORK®
Cecilia Amador de San José

Cecilia Amador de San José

Cecilia Amador de San José, Senior Associate Editor of Allwork.Space, is based from wherever her laptop is. She enjoys traveling and visiting new flexible workspaces.

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