Despite ongoing economic uncertainty – and the possibility of a recession – most C-level leaders report that their companies are nevertheless having trouble filling open positions. Employee recruitment and retention remain at the forefront as a race for talent takes hold in 2022.
We asked C-level executives across Evanta communities what they think is causing the talent shortage and what they’re doing to combat it. Here is what 700 leaders told us about talent issues and the impact on their outlook for the remainder of the year and beyond.
What’s Causing the War for Talent?
71% of C-level executives say that their organization has more open positions now than in years’ past, and only 21% report that the current level of open roles is about the same. When asked what they attribute this to, it’s nearly a tie between supply and demand being out of balance (58%) and the evolution of the new world of work (57%).
For the 14% of executives who said there was another cause, these are some of their responses:
Employees have experienced a better way to work and have inverted the control hierarchy.”
Employees are cycling more than in the past.”
Nothing is quite as normal, and it’s hard to attribute it to anything specific until the dust settles a bit.”
How Long Will It Last?
40% of executives think the talent shortage “will remain this way for the foreseeable future.” Almost one-third (28%) believe this phenomenon will last for 12 months or more.
What About the Economy?
When asked if they believe that finding talent will be an issue even if there is a recession declared later this year, 65% of executives said yes, the talent shortage will still be an issue.
What Are Companies Doing to Recruit Employees?
With regard to their main challenge being recruiting or retention, nearly 60% of executives say that recruiting new employees and retaining current employees are equally challenging right now. They cite promoting company culture (82%) and offering flexible work arrangements (79%) as the top two ways they are recruiting new employees.
Interestingly, the top 3 recruitment strategies are the exact same as what executives reported they were doing in our Great Resignation survey in October last year.
How Are Companies Retaining Employees?
There are clearly three top strategies executives are focusing on to keep current employees: offering more flexibility (72%), improving company culture and employee engagement (71%) and reviewing compensation (70%).
Is This a Sequel to the Great Resignation?
We asked C-level leaders if they were thinking about the war for talent differently than the Great Resignation. Here is a sample of their comments:
Yes, the Great Resignation felt more knee-jerk. This feels like a sustained period of change — different demographics wanting different things, crazy packages being offered, etc.”
For a company that believes strongly in office culture, we are trying to compete against many organizations that offer a more flexible work environment. We actually believe that a recession may help us.”
Every candidate that we interview has multiple offers. Very difficult to be aggressive and still stay within my budget. The budget hasn't changed, but everyone's expectations have changed.”
Certain (not all) industries are booming from pre-pandemic business levels. With the looming recession, I see the economy slowing and therefore job loss happening. Similar to the pandemic, not all industries will be hit the same, so it is difficult to estimate how the talent race will go.”
If you are a C-level executive navigating the war on talent, explore an opportunity to collaborate with your peers or join a community at Evanta.com.
Based on 700 responses to Evanta’s Community Pulse Survey, July 2022.