Randstad Enterprise’s 2023 Talent Trends Report, has found that despite an uncertain economic environment, business leaders are focused on driving long-term value and business impact by increasing talent engagement, satisfaction, productivity, and retention, following the hiring frenzy of the last two years.
The report surveyed over 900 C-suite and HR leaders in 18 markets, including the UK, on their talent and career development priorities for the year ahead.
This year, nearly twice as many talent leaders (77 per cent) say their talent acquisition strategies are more about total value creation for the company than achieving cost savings – compared to 45 per cent of respondents in the 2022 edition of the Talent Trends Report. In the UK specifically, 68 per cent of talent leaders say the same, compared to 60 per cent last year.
“With the tumult of the pandemic behind us, employers are returning to focus on the opportunity to transform how they retain their people and attract new talent through a more people-focused, mission-driven work experience,” said Mike Smith, chief executive of Randstad Enterprise.
Moreover, 88 per cent of UK leaders say the goal of their company’s talent strategy is to have a measurable impact on business performance, the highest level since before the pandemic, representing a shift in thinking to business value. 72 per cent of organisational leaders in the UK also recognize the importance of workforce agility.
Acquiring the right talent is still challenging. Nearly half of all respondents (42 per cent) say talent scarcity remains one of their biggest pain points or is having a negative impact on their business – the highest number in the history of the Talent Trends Report. Talent leaders in the UK in particular are feeling the pressure of talent shortages, with over three-quarters (76 per cent) saying the same – the highest of all countries surveyed.
Given ongoing talent shortages, especially for those with high-demand skills, many companies seek to re-train existing resources to move into those crucial roles. More than three-quarters (76 per cent) of leaders are increasing their focus on skilling and career engagement, while 56 per cent plan to increase spending on internal talent mobility platforms. In the UK, this figure is less, with under half (44 per cent) of talent leaders expecting to do this.
All of these factors point to another key trend: the need for businesses to differentiate by delivering an outstanding talent experience, spanning initial attraction and engagement, hiring, development, internal mobility, career transition, and retirement.
Overall in the UK, 86 per cent say their organisations are more focused on the talent experience and are investing in several areas to improve how they attract and retain talent. These methods include making diversity, equity, and inclusion (DEI) a central part of their talent strategy as cited by 64 per cent of respondents, conducting internal audits to map the candidate experience (60 per cent), creating talent communities to engage and nurture future talent (56 per cent), or using technology to improve engagement (52 per cent).
“Many leaders are taking a more people-centric approach, focusing on the talent experience to ensure their teams have the support and resources to grow professionally, while evolving their organisations to be well equipped to address any business fluctuations or other obstacles. Their ultimate goal is to be a more agile organisation where people are empowered to reach their full potential, in turn delivering a better return for the business due to a greater alignment between workforce strategies and business priorities,” said Smith.
