We are in a race for talent and the winners will be the organisations who recognise that it is a war, and who can design, implement and execute a talent attraction and retention strategy that is fit for purpose – it has to be a competitive advantage!
- There are more retirees than youth – more 80 year olds than 5 year olds.
- 50 Years ago – there were 2 workers for every non worker.
- In 15 years time – the prediction is 1 worker for every 2 non workers.
The Office of National Statistics (ONS) showed that the number of UK job vacancies in this period last year was the highest on record since 2001; at 777 000!
(low point of 432 000 in May 2009 and an average of 603 000 from 2001-2017)
In August 2017 the ONS showed the UK employment rate as 75.1% (the proportion of people in work aged 16-65) – the highest since comparable records began in 1971.
Every sector and Geographic location is experiencing growth – whilst skills are in decline.
For example- there is a shortfall of c30 000 engineers in the UK alone.
The government short skills register has grown from 30 skills to 73 in the last year.
Total fertility rates, which can be defined as the average number of children born to a woman who survives her reproductive years (aged 15-49), have decreased by approximately half since the 1960s.
Europe is ageing. On average, each woman has 1.58 children. This is substantially below the 2.1 children needed to sustain the current population (and therefore workforce) level.
The number of foreign tech job applications are down 50% since the EU referendum vote.
The number of foreign recruits in the UK candidate pool has halved since Brexit – a worrying trend in a country where 10% of workers, including a third of those in the all-important tech industry, are international
The latest net migration figure of 246 000 was 81 000 lower than the 327 000 recorded in March 2016 (ONS).
By 2025, Millennials will make up 75% of the global workforce.
Nearly 33% of new hires look for a new job within their first 6 months on the job. Among Millennials this percentage is even higher – and it happens earlier!
Only 32% of talent leaders considered retention as a top priority (LinkedIn recruitment trends)
Analysis of salaries of 42 500 entry level jobs from more than 770 organisations across the Uk show that entry level STEM roles within the software development or engineering could see an increase of wage by 19% to £30 973 and 17% to £30 37 respectively, making these the highest paid entry level roles in the country (Korn Ferry 2016)
Approximately only 1% of candidates / applicants are hired – Lever 2017 (Inside the recruiting Funnel: Essential Metrics for StartUps and SMBs 2017)
We are heading into the “Perfect Storm” – where supply and demand are heavily biased towards the candidate – why should they choose to work for you?
You can no longer buy talent; you can only sell to them – the candidates are your customer. Are they always right? Are you catering for their needs?
- Company Culture
- Is talent a cost or an investment?
- Is talent a HR problem or a business problem?
- Is your talent strategy aligned with your business strategy?
- Are your line managers adequately trained?
- Is your interview process fit for purpose?
- Is your social media strategy fit for purpose?
- How effective is your retention strategy?
If we accept that talent is the principle differentiator for a company’s success in a global, complex, extremely competitive and dynamic environment, then you have to ask the following question.
What are you doing to ensure that you have access to that talent?
- Are you asking that question?
- What are you doing about it?
- Ignoring it is not a solution!