The recent phenomenon of the “Great Resignation” has collided with a pre-existing skills gap in many industries. This perfect storm is forcing companies to re-evaluate their employee retention strategies. Employees are seeking better work-life balance, competitive compensation, and opportunities for growth. Meanwhile, a lack of qualified candidates creates significant hurdles in filling open positions.
Understanding the Great Resignation
- A recent study by Microsoft found that 73% of employees worldwide are considering a job change. While the pandemic undoubtedly played a role, factors like burnout, lack of career development, and inadequate compensation are also driving this trend.
- U.S. Bureau of Labor Statistics data shows that quits reached record highs in 2021 and 2022, particularly in industries like leisure and hospitality, healthcare, and technology.
The Skills Gap Challenge
- A report by ManpowerGroup indicates that 69% of employers globally are struggling to find the talent they need. This skills gap exists in various sectors, from skilled trades to tech and cybersecurity.
- The World Economic Forum estimates that by 2030, up to 85 million jobs could be displaced by automation, while 97 million new roles will emerge that require different skillsets.
Invest in Employee Well-being
Offer flexible work arrangements, robust mental health resources, and competitive benefits packages to create a work environment that prioritizes employee well-being.
A Randstad study found that 78% of employees would be more loyal to their company if they offered flexible work options..
Prioritize Career Development
- Provide opportunities for training and upskilling to help employees stay relevant in their field.
- Offer clear career paths and mentorship programs to demonstrate a commitment to employee growth.
LinkedIn’s Learning Report indicates that 75% of learners on their platform say that learning and development is important when deciding whether to stay at a company
Foster a Positive Work Culture
- Create a culture of open communication, collaboration, and recognition.
- Value diversity and inclusion initiatives to attract and retain talent from all backgrounds.
A Deloitte study found that companies with strong inclusion practices have a 21% higher profitability than those that don’t [7].
Closing the Skills Gap
- Invest in Reskilling and Upskilling Existing Workforce:
- Leverage internal talent by providing training programs to bridge skill gaps within your company.
- Explore Apprenticeship Programs:
- Partner with educational institutions to develop apprenticeship programs that create a pipeline of skilled workers.
- Embrace Diverse Talent Pools:
- Consider candidates from non-traditional backgrounds and invest in programs to help them transition into new roles.
The Great Resignation and the skills gap are complex challenges, but by adopting a proactive retention strategy and investing in your people, you can mitigate their impact. Building a positive work culture, prioritizing employee well-being and development, and closing the skills gap through internal and external initiatives will empower your company to thrive in the ever-evolving talent landscape.
