As we approach the end of the year, it is a crucial time to evaluate the challenges we face and the opportunities we have for growth as we enter a new year. In the current hiring market, there is a competitive talent landscape with skill shortages, a workforce that is more skeptical and less engaged than in previous years, and a pressure to control costs within most organizations. This environment puts stress on a company’s effectiveness and can hinder overall success if not addressed and managed.
To overcome the current workforce environment and build an effective HR strategy for the new year, our HR Consultants recommend focusing on the following four areas:
1. Leader and management effectiveness. Many people question whether leaders are made rather than born. At FGP, we believe some employees have an innate ability to lead, but most employees and leaders need consistent practice and skill-building to become accomplished and competent leaders. Skills to continuously develop include how to hold themselves and others accountable, providing valuable feedback to promote growth, adapting to change, building and developing teams, and showing recognition, appreciation, and empathy for the team. Organizations need leaders who can motivate, retain, engage, coach, and develop their teams.
2. Organizational Culture. Company culture is essential to attract, retain, and engage talent within your organization. An engaged workforce also comes along with other competitive advantages, including customer satisfaction, innovation, and profitability. Areas that can determine the state of your company culture include core values, leadership, relationships, authenticity, and overall employee satisfaction. These aspects can be evaluated through surveys or interviews with employees. After establishing a baseline, an action plan can be created to implement or improve company culture.
3. Compensation and Pay Transparency. Salaries have been rising continuously since the pandemic, and if organizations have not adjusted accordingly, they are most likely not competitive in their recruitment or retention of employees. Based on a survey from Mercer, organizations are projecting merit increases of 3.5% on average in 2024. Pay transparency is not something that we see disappearing anytime soon, so developing an approach that will put you ahead of the federal or state requirements will promote a culture of trust and ultimately help you to attract candidates and retain employees. A compensation study is a great way to start this process.
4. Individual Development Plans and Progression. According to a LinkedIn Report, internal recruiting will be an important factor shaping talent acquisition over the next 5 years. This means there needs to be further emphasis on developing talent that is already within the organization and communicating the opportunities that are or may become available. Areas to invest in include skills-based learning opportunities, individualized development & career plans, and building a growth mindset within the organization.
At FGP, our team of HR Consultants are dedicated experts in these areas and can help you and your team have a successful 2024 and beyond. Whether it is a compensation study, your next great hire, or your next career move, FGP has the solutions to help achieve your goals.