By Kara Jorvig

Ask any CEO what keeps them up at night, and chances are good you’ll hear the same answer: People.

Despite significant advances in artificial intelligence, all businesses need a high-performing team to create and deliver their products and services. Regardless of company size and industry, attracting and retaining the right people on that team is critical to success.

Building those teams is increasingly difficult.

In April 2021, just over a year from the start of the worst recession in U.S. history, 4 million people quit their jobs, according to Labor Department data. We’re watching in real-time as many employers struggle to fill openings even as unemployment remains significantly elevated from pre-pandemic levels.

In one recent survey by Randstad Sourceright, 40 percent of HR leaders said their companies have been negatively impacted by a scarcity of talent, including roles in IT, human resources, finance and accounting.

The situation is unlikely to reverse anytime soon. By 2030, Korn Ferry predicts there may be more than 85 million unfilled jobs worldwide because companies can’t find enough skilled workers.

The cost is huge. If this forecast comes true, companies could be missing out on nearly $8.5 trillion in annual revenue. In the U.S. alone, the labor shortage could cost businesses $1.7 trillion in unrealized yearly revenue.

At Allegro Group, we expect human capital to be the scarcest resource in business over the next 20 years. Leaders must act now to set their organizations up for success.

 

Step 1: Create a strategy to attract talent

With competition for talent at an all-time high, businesses need a high-performing talent acquisition team to consistently attract the people their organizations need to succeed.

Traditional methods for finding and selecting new team members— posting a job opening and running old-school interviews — are outdated. To succeed in today’s employment market, those responsible for talent acquisition need to think outside the box.

This means testing different options to see what works best for you and your organization. For example, businesses with a long view may find value in building deep relationships with local schools and universities to create a pipeline for tomorrow’s talent. Exploring new community and industry relationships is another great way to cast a wider net.

At Allegro Group, we focus on developing personal, long-term relationships with emerging and established talent. That way, we maintain a deep network of high performers and understand when a new opportunity is likely to be a good fit for their personal and professional goals — as well as their skill set.

When it comes time to conduct interviews, finding the right balance between evaluating and engaging a candidate is key. In today’s market, candidates are interviewing you as much as you are interviewing them.

The motivations of next-level leaders and team members are likely far different than those of your hiring managers and executives, which means traditional interviews aren’t going to work. It is critical to be aware of the values and motivators of the people you are interviewing. Plan your interview process in a way that allows you to talk about what is important to them, as well as to your organization.

 

Step 2: Build and maintain a solid employment brand in true alignment with your culture

You can’t recruit what you want; you can only recruit what you are.

Today’s top performers are looking for more than a paycheck. They want to become part of an organization that shares their values.

This means different things to different people. Some people are looking for a family-first culture, for example, while others are attracted to organizations with a deep commitment to community and civic engagement.

There is great diversity in terms of preferred corporate culture, but one thing is nearly universal: People hate a phony. What you promote as your employer brand needs to match the lived experience of the people in your organization.

That’s why there is a clear link between an organization’s leadership team, marketing and talent acquisition. The leadership team needs to define the organization’s desired culture and then consistently measure and manage to that culture. The marketing team needs to communicate and promote an employment brand in alignment with that culture. And the talent acquisition team needs to execute searches and onboarding to support that culture.

One powerful exercise is to conduct a survey of your internal team to understand their perception of your employment brand. Ask yourself: Does this match the stated vision? Then, look for opportunities to measure external perceptions as well.

 

Step 3: Provide intentional development plans for people inside your company

It’s not enough to simply attract talent. Successful organizations also invest in ongoing development for their teams. This is vital to long-term success; as they grow, businesses need to ensure that they don’t outgrow their leadership.

At Allegro Group, we begin with the first step in our A-Framework: Awareness. Think about your business goals. Where does your organization aim to be in the next five to 10 years? What are the leadership competencies the business will need to operate at that level?

With that awareness, you can begin to build your development plans in alignment with the business goals. This will ensure that you are developing the right level of leader within the organization to grow and innovate in the ways that the business will need.

A lot of businesses focus on employee retention. But retention doesn’t mean anything unless you’re investing in and actively developing your people. Retention without development creates stagnation.

The labor market is shifting and changing at one of the fastest rates we’ve ever seen. Strategic leaders are positioning themselves and their organizations to stand out from the crowd.

Allegro Group’s mission is to give value-centric leaders the opportunities, tools, networks and confidence to stay in the game and thrive in this dynamic market. We know that success will require a fresh approach to human capital – one that equips individuals to level up their personal and professional goals.

If you’re ready to seize the opportunity, give us a call.

 

Kara Jorvig is the founder and CEO of Allegro Group, a premier consulting, organizational development and talent acquisition firm. For nearly 20 years, she has partnered with CEOs and executive teams to help them assemble, activate and accelerate their A-Teams. For more from Kara, follow her on Instagram @kara.jorvig or LinkedIn @KaraJorvig and visit karajorvig.com.