Will you be able to find the talent you need to be successful? Many call the frenzy to find qualified workers a “War for Talent,” because if you don’t attract and retain the best and brightest, your business will not prosper and may not even survive! The dotcom era of the 1990s precipitated an unprecedented war for talent and that talent war is back with a vengeance, but also with a twist. IT, banking, and engineering jobs never experienced the high unemployment rate that other sectors did, meaning talent searches in those areas remained competitive throughout the recession. Now, as the economy experiences robust growth and new jobs are being created, the war for talent is becoming even more heated. The new war for talent isn’t so much about filling positions as it is about finding the right talent to propel a company forward in a dynamic economic environment.
Jobless Numbers and Employee Shortages
In June, the jobless rate fell to 6.1% (down from 6.3% in May), which is the lowest it has been since 2008. This, along with the 288,000 new jobs created in June, should mean good news for job seekers. But the gains in the economy have also created a battle for talent that can get downright vicious. Economic growth has created new positions in the fields of science, technology, engineering, and mathematics (STEM) that remain unfilled due to lack of qualified talent.
Unemployment rates for IT and accounting jobs remain extremely low as compared to overall national job numbers. The Department for Professional Employees reports that STEM unemployment rates hover between 3% and 4%. Unemployment rates for highly skilled positions such as software developers, electronics engineers, and computer hardware engineers have dropped even lower. This lack of qualified talent has created a super-competitive hiring scene in these fields.
The New York Times recently reported that battles for new talent in the banking industry have created dilemmas for junior bankers, some of whom get recruited by rival firms up to 18 months before the new position begins. Interviews sometimes require candidates to miss work with little notice, and the long lead-times before beginning new jobs often mean candidates must ignore their current employer’s requirement that they resign once they have accepted a job at another firm. Banks themselves have tried to make jobs more desirable by extending contracts or offering additional time off.
The Right Person for the Job
Eighty-one percent of businesses that hired or tried to hire during the last quarter said they had trouble finding qualified talent to fill available positions. With competition becoming increasingly fierce in the marketplace, finding the right person for the job will depend on a company’s ability to engage young workers. Some have decided to opt out altogether, choosing instead to start their own businesses or work for smaller companies with less corporate pressure. Others place high value on job security, work environment, and leadership models when choosing an employer. Companies that want to attract and retain top talent will also need to review their compensation and incentive programs. Many companies will need to make substantial adjustments if they want the top performers.
Ultimately, attracting the right talent will depend on a company’s ability to understand and engage the new generation of business leaders. Top talent is a rare commodity and companies will find that the best and brightest may be difficult to retain. Offering better compensation packages while also listening to their ideas, providing room for self-management and growth, and creating a positive employment culture may be the keys to winning the war for talent.
