Hiring and Retaining Talent Biggest Concern for U.S. Firms
Finding and retaining talent is the top concern for firms in the U.S., according to a new joint survey conducted by Deloitte and the International Society of Certified Employee Benefit Specialists (ISCEBS). In fact, the survey shows that a shortage of skilled and talented workers has even surpassed rising health care costs as the most pressing concern for employers.
In keeping with Deloitte’s findings, a global survey conducted by McKinsey also shows that recruiting talent is the number one priority of executives. No other global trend is considered nearly as significant. But as recruiting talent becomes a high priority for firms, competition is also heating up. Nearly half of those polled expect intensifying global competition for talent. Respondents also believe increasing competition will have a major effect on their companies over the next five years.
Executive search firm, A.E. Feldman, says despite recent market volatility, demand for qualified talent remains robust and competition is intensifying in a number of fields. Accounting jobs, infrastructure finance jobs and risk management jobs are among the existing opportunities. Attorney jobs are also available for candidates with expertise in trusts & estates, tax, M&A, securities, bankruptcy and the environment. Additionally, A.E. Feldman’s industry experts see significant emerging opportunities in renewable energy as well as data center efficiency.
Nearly 75% of the 413 U.S. human resources professionals surveyed by Deloitte indentify talent as their top concern. Recruiting and retention efforts even beat rising health care costs (71%) as major concern this year.
“Clearly, talent management is the top organizational challenge – higher than managing the cost of total rewards, especially health care,” said Tim Phoenix, a principal in Deloitte’s Human Capital service area and Co-Director of the survey. “We find that HR organizations around the world are becoming increasingly business-driven and strategic, shifting their focus from HR administration and cost reduction to long-term ROI and growth in a way that directly impacts the bottom line.”
As competition for human capital heats up however, employers must strike a balance between wooing talent and controlling costs. Deloitte finds that in an attempt to achieve that balance, companies are abandoning the traditional vertical “corporate ladder” approach and are addressing their long-term workforce needs through a more flexible “lattice” employment model. Under this model, Deloitte states that professionals are able to write their own ticket and take advantage of a broadening range of job options and structures.
The customization of rewards strategies is being driven by a number of powerful trends, including the shrinking pool of talent, the increasing impact of technology and the evolving of expectations of qualified candidates, according to Dick Kleinert, a Principal in Deloitte’s Human Capital service area and Co-Director of the survey.
