New research from Lattice, a leading people management platform for businesses with people-first cultures, has revealed that 39% of HR leaders believe labour shortages are here to stay for up to two to three years. In addition, 59% of workers say that the pandemic has made them more likely to quit their jobs.
“We’re entering a period of existential reckoning when it comes to the balance between work and our lives,” said Jack Altman, CEO at Lattice. “The tables are turning, and employees have a real opportunity to exercise bargaining power. In response to this ‘Great Reshuffle’ and unprecedented global disruption, HR leaders are having to seriously rethink how they attract and retain staff in the short and long term.”
As HR teams reassess their people strategies in line with the Great Reshuffle, 57% of HR leaders agree that there are not enough skilled staff available to plug the current vacancy void. And limited talent means that candidates are in a unique position to negotiate higher pay than before. In response, HR teams are getting creative and over half of HR leaders (53%) say they have or are planning to recruit freelancers or contractors to address the shrinking talent pool.
“This research study shows that pre-pandemic approaches are no longer applicable and businesses have a new opportunity to rethink how work works. First is revaluing the importance of a positive culture in attracting and retaining talent. From purpose and filling in the ‘why’ behind work to creating a trusted community built on equality and collaboration, and giving staff the tools to grow, will together help create a positive differentiator.
“The second key factor is the need for authentic connection between employers and employees. HR leaders cannot optimise purpose, community or growth in a vacuum. Ongoing, iterative change, based on what staff are telling you, is the crux of how HR leaders can build an effective people strategy for today and tomorrow,” added Altman.
These findings are revealed through Lattice’s Rethinking Work: Attracting and Retaining Talent in an Employee-Led Market Study, which surveyed over 2,000 full-time workers and over 200 HR leaders from multiple business sectors in the UK.