We are soon in the midst of 2016, economic growth seems to be increasing at a dynamic pace and the human capital retention continues to be a daunting challenge for many HR professionals.
In a late study observed by the Society for Human Resource Management (SHRM), a question was asked for the HR professionals : What are the biggest challenges you foresee over the next decade? The study demonstrates a fascinating conclusion that more than half of the respondents (51%) indicated human capital acquisition as the answer.
Why human capital acquisition seems to be a vital issue? Flush of information, change in workplace dynamics, evolving internet change and lifestyle changes have all led for organisations to rethink on their talent acquisition strategies and more so, on retaining the key talent within companies.
Challenge #1 : The Thriving Flush of Employees Turnover
A survey held towards the end of 2015 showed remarkable result. As many as one-third of the workforce is planning to transition to other career options within the next semester. This is a wake-up call for many HR professionals across the globe.
Anyone can now easily access a plethora of job vacancies simply from their smartphones and notebooks. Hence, its time companies gear up their initiatives to meet employee demands and facilitate talent retention objectives. Also hiring right for the cultural fit is a major challenge for HR managers.
Challenge #2 : Higher Demand of Talent for Specific Skilled Jobs
Retirement issues have been a critical point of worry for HR professionals through years. Hence, need to get new talent on board is of immediate concern and talent acquisition strategies have to fortified pillars of strength with the new generation (millennials) reigning the workplace of the future. Home health aides, for instance is predicted to be 48% higher over the next seven years.
A 2015 study in U.S specifically shows some jobs that are difficult to find the right talent. These include – skilled drivers, teachers, accounting and finance staff, engineers, nurses, technicians, trade workers and many more.
Challenge #3 : Qualified Talents are in demand
Recruiting new talents is not burdensome, however a critical question arises : Are the new talents having similar or even higher competencies, productivity and engagement levels than the Baby Boomers and Gen Ys?
Here are top three top reasons why HR professionals find it difficult to recruit new talent on board:
Challenge #4 : Demand for Higher Wages
The increasing cost of living leads to employees/workers demanding better pay to meet their lifestyle choices. This leads for companies to carefully consider budget allocation and only hire the qualified talent in demand.
These challenges are not just associated with the realm of HR but also impact workings of the team and all related stakeholders involved with the company. Therefore, an intensive discussion about these challenges and critically addressing them is a need of the hour. Hire right and compensate right has to be the strategy adopted by organisations to set pace with the momentum of change.