Our Human Capital Resources practice regularly meets with business owners and executives, as well as their advisors, to discuss their evolving talent needs. Based on these conversations, we’ve observed five key recruitment and retention trends for 2020, and beyond.
1. Employer branding is a critical tool for attracting quality candidates.
Company reputation matters. Over 75 percent of job seekers research an employer’s brand and reputation before they apply for a position. Top companies inspire purpose, respect their employees, and promote a team-oriented culture. They are also able to articulate their cultural values and promote them externally via a clear message about who they are and what makes them unique, giving them an advantage when it comes to attracting top talent.
2. The candidate hiring experience can be make or break.
Positive first impressions can go a long way in the interview process. A candidate’s experience – good or bad – can ultimately impact their decision whether to accept an offer. Research has shown that companies that develop a strong positive hiring process realize 70 percent improvement in the quality of their hires. All stages of the interview process should reflect a positive message about the company and the employee experience.
3. Don’t overlook soft skills.
Soft skills are becoming increasingly important in the hiring process. Companies are seeking executives who possess not only the right technical skills for the job, but also the emotional skills (EQ) that will help them integrate seamlessly into the culture and be an effective leader. These skills include collaboration, problem-solving, and communication. Many companies have found success with using online personality tests such as the Predictive Index to measure these characteristics in the interview process.
4. Having a strategy to retain your top employees is essential.
Research shows that 58 percent of employees have actually taken a pay cut for a more positive work culture, and 80 percent of employees would prefer more benefits over a salary increase. Companies need to recognize that for most employees, it’s about much more than money. Employees need to feel appreciated and invested in the business. Companies should devote time to understanding these motivating factors and implementing strategies to retain their top executives. Some techniques include executive training, group retreats to energize the senior team, new company growth initiatives, additional benefits, and the opportunity to earn more compensation based on company profitability.
5. Millennials are evolving the definition of job satisfaction.
Data from the Pew Research Center shows that 35 percent of all employees currently in the workforce are Millennials, and they do not see themselves staying at their organizations for the long term. Millennials also tend to favor companies that offer flexible work hours and the opportunity to work with “great people.”
In addition, 83 percent of Millennials (as well as 80 percent of Generation Z) believe the definition of a company’s success needs to go beyond simply making a profit; companies should promote diversity, make a positive impact on society, develop innovative products/services, and prioritize their employees’ career development.
Employee loyalty must be earned, and the vast majority of Millennials are prepared to move – and move quickly – for a better workplace experience. Companies looking to attract and retain Millennials must find ways to keep them challenged and meet their needs. This is important not only for short-term workplace cohesion, but also for creating a strong talent bench for future executive leadership.
The job market in 2020 remains strong, and it is an employee’s market. Companies must find new techniques to attract and retain top talent, continuously challenge their current employees, and showcase why they are the best workplace.
How Kreischer Miller Can Help
1. Retained search for all of your executive hiring needs.
As you seek to round out your executive team and bring on future leaders, we can help you find the talent for President, CFO, COO, CTO, HRO, Plant Manager, Operations Lead, Marketing Lead, Sales Lead, and similar searches. Our personalized approach and vast network will locate the right fit for your organization, whether your plan is to hire senior team members, or find someone who can develop into a senior role.
2. Tools to aid your executive retention strategies.
Kreischer Miller has access to compensation reports that provide accurate privately-held company compensation data. We can offer you cost-effective compensation reports for your location that you can use to ensure your compensation packages for key personnel are competitive.
3. Assistance with future finance department leaders.
In addition to our placements in the C-suite, we are positioned to help you secure up-and-coming talent across your entire finance department, including Controllers, Financial Analysts, and Accounting Manager-level talent.
Contact our Human Capital Resources team for more information on this topic.