Walk the Tight Rope: Managing Economic Realities and Talent Concerns | DCR Workforce Blog

Walk the Tight Rope: Managing Economic Realities and Talent Concerns

By all accounts, the economy has slowed down across the globe and no one really know when it will pick up again. Business leaders today are expected to hit better earnings, quarter by quarter and keep shareholders happy by keeping the share price steady or going north. Most business leaders are consumed by concerns involving productivity and growth, natural resources, labor markets, the evolution of global financial markets, the economic impact of technology and innovation and urbanization. They’re also gearing up to cater to global consumers in a new era of global competition. In all this, they’d better not ignore the needs of their workers.

According to predictions, the overall rate of return on investments is set to drop in the coming years, affecting employers both big and small. This could put even more pressure on leadership teams that are already struggling hard to balance their talent needs with the talent availability in the job market. The time is now for these leaders to realize the effect these economic conditions are bound to have on their workers and their retirement plans. Businesses need to ignore the expectations set by past experiences and performances – and forge a new future for themselves and their teams based on the new economic conditions.

Understand the new economic situations

There are new economic situations that true leaders must consider for their employees if they want to keep top talent:

  • Corporate profits may not continue on a growth trajectory, buoyed by the expansion of global markets, lower borrowing costs, lower taxes and efficiency gains from automation and global supply
  • Lower returns on investments usually divert the funds to other uses. This would mean that companies strapped for funds will find it hard to attract, engage and retain workers with the right skills.
  • Demographic shifts and lack of required skills are affecting employment growth, which is unable to sustain a strong growth.
  • Emerging markets are building stiff competition and new margin pressures, even as businesses are expanding into new markets and diversifying into new sectors.
  • Few individuals are able to retire on their savings or pension funds, even as life expectancy is rising requiring them to plan for longer post-retirement periods.
  • Finding a job for some workers with low-level existing skills becomes difficult as the skills they possess are outdated and not required by the job markets anymore.
  • Company-specific skills and institutional knowledge accumulated over the years make them the best choice for roles in training, customer service, advice and mentoring.
  • Millennials get upset with the growing challenge from senior workers making it harder for them to grow and increase pay.
  • Employers may find that post-retirement workers prefer jobs that offer flexible or part-time work hours, or even work from home, to conserve their physical energy.

Businesses may find that their ability to retain talent hinges on the value they offer to their workers. Nothing qualifies more than work hours and retirement plans, even for the younger crowds, to achieve this goal. Most people have little or no time and mental energy to research retirement investment options or portfolio allocations.

To engage their employees and to ensure that their workers prepare to face the financial conditions of today’s economy, employers could help them plan their retirement better and advise them to stop investing in plans that offer diminishing returns. Not only will this approach help workers prepare better for the new economic realities and their future survival – but it will also help savvy employers become immune to the pressures in finding, engaging and retaining workers with in-demand skills even in the face of stiff competition.

While balancing the needs of the business with the needs of employees can feel like walking on a tight rope, it’s something that must be faced head-on to stay competitive in these changing times.

What is your company doing financially to retain top talent?


Disclaimer:
The content on this blog is for informational purposes only and cannot be construed as specific legal advice or as a substitute for competent legal advice. They reflect the opinions of DCR Workforce and may not reflect the opinions of any individual attorney. Do contact an attorney for advice specific to your issue or problem.
Lalita is a people/project manager with extensive experience in operations, HCM and training and development across industries like banking, education, business consulting, BPO and information technology. She believes in a dynamic approach to life and learning as change is the only constant.