The labor market is in the middle of a seismic shift. A lack of qualified workers has complicated the hiring process. This, in turn, has put increased pressure on retention. In the new economy, you’ll see increasing value from investing in your current workforce rather than seeking outside talent.
The main driver behind this strategy realignment is a trend that has become known as the “sansdemic,” a term that describes a system-wide lack of qualified workers. As a result, employers will face a smaller pool of potential job candidates, making it harder to find good talent.
An estimate delivered by Korn Ferry suggested that the global labor shortage could reach 85 million workers by the start of the next decade. In dollar terms, this could reduce annual revenues of companies worldwide by $8.5 trillion.
This change will put significant pressure on your operations. Finding talent will become difficult. As a result, holding onto to high-performing staffers will reach the top of many firms’ HR priorities.
Beyond counteracting the impact of the sansdemic, a focus on retention has other key benefits.
Here are some of the other reasons why it’s better to invest in your current workforce over outside talent:
Your Team Performs Better
An added investment in your current team will lead to an upgrade in performance. Your employees will have additional skills to apply to their day-to-day tasks. Meanwhile, increased retention rates will create more stability. It will be easier for coworkers to develop efficient routines and deliver consistently on an ongoing basis.
You Have More Information
New hires represent an unknown. You try to gather as much information as possible during the recruiting process. However, you can only garner so much from resumes, research, and job interviews.
In contrast, your current staff is a known quantity. You know their strengths and weaknesses, giving you the information you need to get the most out of them. You won’t face a time-consuming learning process or run into surprise personality roadblocks.
Your Organization Gets More Flexible
Some staff development efforts might seem redundant at the time. Employees learn skills that they might not use in their everyday efforts. However, this investment gives you additional optionality. You can quickly move team members into new roles because they have the necessary abilities.
In this way, devoting resources to your current staff gives you additional flexibility. You can quickly respond to market changes, without the time-consuming and costly process of seeking outside expertise. This lets you stay nimble, able to jump onto any opportunity that comes your way.
You Build a Great Leadership Bench
Upskilling your team doesn’t just help in the near term. It also creates significant long-term value. As higher-level positions become available, you’ll have desirable candidates already available in-house.
Recruiting Gets Easier
Yes, the sansdemic is going to make recruiting more difficult. And, sure, that means you’ll want to keep more of your current staff. But that doesn’t mean that you’ll never need to hire from the outside ever again. Even in a changing labor market, you’ll still need to locate great candidates.
A focus on developing internal talent can actually help on the recruiting front as well. You’ll develop a reputation for taking care of your employees. This will boost your employer brand and make you a target destination for career-minded candidates.
Reach Out to PrideStaff Bend Today
As you look to overcome the labor crisis engendered by the sansdemic, a strong recruiting partner will become critical. A top staffing agency, like PrideStaff Bend, will give you the edge you need to thrive.
Contact PrideStaff today to get the most out of your team-building efforts.