HR leaders say that “keeping top talent” is HR’s No. 1 stressor and what’s keeping them up at night, according to a new survey of more than 500 HR decision-makers.
Isolved third annual survey of human resource leaders released this week found that costly sourcing, hiring and training are motivating organizations to not only keep the high performers they currently have, but to also upskill and reskill them to fit company needs.
In fact, 98% of respondents said upskilling and reskilling their workforce is important, with 58% indicating they currently have a skills gap at their company.
“Businesses always try to find the employees who are truly impacting the organization positively or have the potential to with the right people and programs,” said Amy Mosher, Chief People Officer at isolved, a human capital management and cloud-based payroll company.
“When the job market fluctuates between abundance and scarcity almost weekly, developing driven people is a necessity,” Mosher said. “The questions HR leaders need to ask themselves are: who are their best and brightest, what do they need to be successful and how can we keep them engaged and thriving?”
The survey found 51% of HR leaders feel employees are less motivated than they were a year ago and an equal amount expect that retaining talent will be even more difficult this year. One way that companies are trying to increase motivation and engagement levels is through learning-and-development programs. Another is to minimize burnout. Nearly half (46%) are providing flexible work arrangements and 37% have implemented strict policies around responding after work hours.
Despite interest and investments in employee retention, economic uncertainties have many companies preparing for worst-case situations, the survey found. In fact, 53% of HR leaders said they had reduced their workforce in 2022 or plan to in 2023. Further, 52% of companies have already reduced their discretionary budget this year.
Just 21 percent of companies said they are playing the “wait and see” game and will address headcount and discretionary budget if the U.S. enters a recession, the survey said.