As we approach the mid-way point of 2023, it's become clear that one of the key areas where businesses need to focus their attention is talent.
With hiring slowing down across the globe, finding the right talent has never been more important, and many organizations are pivoting to a skills-first hiring approach to meet the needs of the business.
Linkedin’s 2023 Global Talent Trends Report highlights how changing workplace values, the economy, and labor market trends are transforming hiring and the future of employee programs around the world, in four fundamental ways.
Hiring is slowing down around the globe, yet HR leaders must continue to add new skills and competencies to meet business needs and ensure the organization remains competitive.
These constraints have changed how HR leaders are sourcing talent, forcing them to be more resourceful and focused on specific skills that meet the immediate needs of the business, rather than broad roles.
LinkedIn data shows that organizations using skills data to find talent are 22% more likely to receive InMail acceptances and 60% more likely to make a successful hire than those that don’t rely on skills as part of their hiring process
"Focusing on skills and past experience and performance is a much more accurate predictor of success and will lead to stronger, more diverse teams that have both the breadth and depth of skills to deliver” says Stacy Donovan Zapar, founder of The Talent Agency.
Reduced headcount and hiring pauses make retaining existing employees a priority.
According to the 2023 Future of Recruiting Report, when an employer is highly committed to internal hiring, employees stay at that company 60% longer.
However, employees remain more likely to look for an external role than internal one due to two reasons, according to LinkedIn VP of Talent Development Linda Jingfang Cai.
"Job openings are easier to find, and they often provide bigger pay bumps. Even when employees do prioritize internal roles, they can get discouraged by internal-hiring processes that are often clunky, and it can be hard to demonstrate transferable skills. On top of that, their companies often won’t pay them the same as someone hired from outside."
According to the Global Talent Trends Report, employees in the U.S., Canada, India, the U.K., and Australia are just as likely to seek out internal roles as external roles when they’re looking to advance.
Even with internal mobility increasing in some countries, it’s still not top of mind for most employees.
This presents organizations with the opportunity to foster more mobility and retain talent by publicizing internal job opportunities and clearly articulating what skills are required for internal moves.
Despite swings in the labor market and economic uncertainty, employees’ top three values have remained unchanged, with compensation, work-life balance and flexibility at the top of the list
However, data also suggests that organizations need to look beyond typical job attributes to attract and retain top talent.
Notably, upskilling and professional advancement are trailing the top three closely.
Organizations can gain a strategic advantage over their competitors by advertising the various opportunities of growth available at the company, to both candidates and employees.
People want to know what it's really like to work at an organization, and whether it matches their expectations for growth and advancement.
According to LinkedIn VP of Global Talent Acquisition Jennifer Shappley, the values alignment between employers and employees only works if organizations are effectively and authentically communicating what they stand for.
Data from the Global Talent Trends Report shows that companies that help employees learn skills on the job can expect a nearly 7% higher retention rate, saving organizations thousands in hiring costs.
While many organizations are setting up learning and development (as well as internal mobility) programs as a way for employees to build new skills and stay agile, not all workers are taking advantage of those internal opportunities.
We also know this can help organizations attract the next generation of leaders and most diverse generation, Gen Z.
That’s because they are almost 50% more likely to value moving up the ranks when compared with their Gen X counterparts, but considering they’re first-generation professionals or young people who started working during the pandemic, they simply may not be aware of the opportunities and learning programs available to advance their career.
Gen Z need help to connect the dots between skill building, internal mobility opportunities, and career growth — which can help you build a pipeline of talented, diverse future leaders.
Thrive career wellness can help your organization transition to a skills-first talent strategy, seamlessly. Here are just some of the benefits and features of introducing Thrive’s innovative platform to your employee development programs:
Thrive makes it easy for organizations to map, identify and develop the critical skills and competencies they need to grow.
By providing individualized, one-on-one support to each of employee, Thrive enables your employees to develop the skills they need to succeed in the future of work and continue to grow their contribution to your organization.
Book a demo to see exactly how Thrive can help your organization adapt its 2023 talent strategy.
In conclusion, talent acquisition and retention have emerged as critical focal points in 2023. Organizations worldwide are shifting towards a skills-first approach, leveraging data to source talent and build stronger, more diverse teams.
Internal mobility remains important, but companies must address the limitations that drive employees to seek external opportunities. By promoting internal job openings and clearly communicating required skills, organizations can foster a culture of internal mobility and retain valuable talent.
Furthermore, businesses should go beyond traditional values and emphasize upskilling and professional advancement to attract and retain top talent. By effectively communicating values and offering growth opportunities, organizations can gain a strategic advantage over competitors.
Learn why leading organizations are working with Thrive to support their employees.