The Talent Wars – are you being sucked into an arms race?
Companies and organisations competing for the best talent is nothing new.
The phrase 'The War for Talent' was coined in 1997 in a study by Steven Hankin of McKinsey & Co and refers to the ever-shifting landscape around attracting and retaining talented employees.
In the job market, specifically referring to the SAP job market that Integrate ERP specialises in, the war for talent has become increasingly intense since the start of the economic bounce-back ‘post’ pandemic.
The backdrop to the emergence of companies ‘warring’, or more politely ‘competing’, for the best talent has, historically, had influences stemming from changing demographics.
An example of this being an increased demand for highly skilled workers, due to expanding economies, confronted with a decrease in population.
When the COVID-19 global pandemic struck, lots of companies had to make cuts, redundancies, furlough and reduce costs to weather the storm, so they could re-emerge intact.
Now that the world is emerging from what has been a trying and testing couple of years, companies are clamouring to re-hire those employees they had to let go.
More than this though, lots of companies that had SAP Programmes planned and signed off, with budgets in place, pre-pandemic, have waited until it is both safe and fiscally sound to kick off programmes, upgrades, enhancements etc.
Here's the issue
All these companies are vying for the best talent, and everyone is wanting to hire the same people - at the same time. The job market is ‘popping’.
It is now commonplace for an SAP Professional looking for a job to have three, four, five, even more solid job offers at the same time. This is a great time for SAP Professionals to be in the ‘driving seat’, that is for sure!
So, how should companies react to this seismic shift?
What tools are in your arsenal?
The most obvious ‘pull’ factor is inflating salaries and paying through the nose to lure your target employees.
Sure, this will work… for a while. Until the next company that is 'at war' with you offers an extra bump on the salary, or a signing on bonus. Or, until a major recession hits and companies look for a way to cut costs. Those over inflated six-figure salaries are in the spotlight now!
Our thoughts, here at Integrate ERP, are that you should definitely pay competitively, but prioritise the following;
Time to hire: how long does it take from identifying a need, to making an offer? More than four to six weeks for a permanent hire… and you are losing out.
Work /life balance: Ensure prospective employees understand fully what you offer. Do you offer a 4-day week, a hybrid model, flexible hours? Don't just tell the candidate, why not get some of your newly onboarded staff involved in writing endorsements, or even involve them in the recruitment process, so prospective employees can hear first hand how great your culture is!
The notice period and counteroffer: Don’t simply cross your fingers and hope that your next hire turns up after their one, two or three months’ notice period, as they will likely have had lots of other opportunities come across their table, possibly even a counteroffer from their current employer. Our advice? Consider inviting them into the office, or for a social with the rest of the team. Get their company laptop, mobile phone, credit card, home office set up spend sent out to them quickly, to cement the relationship. Book dates in diaries and keep in constant touch with them.
TLDR: Don’t simply 'throw' money at hiring people. It is likely that you won’t secure and - importantly - RETAIN the best talent. Candidates who are constantly seeking the next pay bump will hop at the very next chance.