According to the " Data Emploi Territoires " barometer conducted by Adecco in the pre-Covid era, nearly one out of two companies indicated that they were experiencing recruitment difficulties. This phenomenon has continued to intensify over the past two years and companies must redouble their efforts to find and retain talent. This is what we call the War for Talent. What explains these recruitment difficulties? What strategies should be put in place?
A few reminders about the "War for Talent"
The concept of "talent wars" was first coined by the international consulting firm McKinsey in 1997. It describes the difficulties companies have in recruiting and retaining qualified employees . The main reason given for this is demographic change, which has led to a shortage of certain skills or a shortage of staff in a given geographical area.
Since then, the term "Talent Wars" has been commonly used throughout the various changes in the labor market. It now refers to the competition between companies to recruit and retain top talent, which parallels talent retention strategies.
A War for Talent Created by a Shortage
The war for talent has its origins at several levels.
The first reason for a talent war is the shortage of manpower. This is not a new phenomenon, but it has intensified significantly since the health crisis. As we mentioned, it is about the lack of manpower:
- on a geographically defined territory;
- in a particular sector of activity.
According to a study conducted by Korn Ferry, there could be a shortage of 85.2 million skilled workers worldwide by 2030. The sectors most affected by a labor shortage are health care, construction, logistics, security, social and support services and engineering. Since the covid, there is also a shortage of workers in the tourism and hotel sectors.
There are several reasons for this shortage in the labour market.
First of all, there is a mismatch between the skills present on the market and the real needs of companies. On the other hand, the required skills are constantly evolving. They are rapidly becoming obsolete and companies have difficulty predicting future needs.
HR strategies for effective talent retention
To wage this war for talent, companies, and especially HR management departments, must implement new techniques and methods to attract and retain employees. To be relevant and effective, these new strategies must be thought out and integrated into the company's overall HR strategy. Here are some examples of HR action levers.
Recruitment
A modernization of recruitment processes is needed in many companies. According to a study conducted by the recruitment firm Michael Page at the end of 2019, a recruitment process takes an average of five weeks, or even longer for managerial positions. A smoother, faster, digitalized process is a positive experience for candidates.
Working conditions
Employer branding is a key element in a company's recruitment strategy.
The Covid crisis has shaken up the organization of work and potentially accelerated changes already initiated. Flexibility, for example with the generalization of telecommuting, is an organization that has convinced many employees. This retention lever allows for a better balance between private and professional life. More generally, more flexible working conditions that are more attentive to employees' needs guarantee a positive and attractive employer brand.
Skills Management
Effective skills management, including training with development prospects, mobility, transfer of skills, contributes to a positive and dynamic image of the company. Thanks to a follow-up of the employees, the HR departments are aware of the personnel movements and can thus better anticipate and ideally slow down the departures of the company's talents.
Wages policy
Compensation policy is often the subject of debate when reconsidering the attractiveness of a company. In a context of war for talent, companies are often forced to align themselves, or even offer more attractive compensation packages, in order to attract employees who would then no longer want to go elsewhere.
But beyond monetary recognition, employees also expect more responsibility and autonomy in their work. This fosters employee commitment and responds to the quest for meaning that they are increasingly seeking since Covid.
Streamlining the HR Fonction
As you can see, HR professionals are now faced with new challenges. Their function is taking on a new dimension, since it is no longer just a matter of managing human resources (well), but above all of managing human resources better than other companies.
The HR function, traditionally known as an administrative function, must now act by turning towards the external environment and take on the role of marketer. Indeed, the strategies implemented are similar to marketing strategies where the employer brand must take on its full meaning at the human resources level.
