The Impact of Shifting Talent Pools on a Changing Labor Market
On the latest episode of Kantata’s Professional Services Pursuit Podcast, our hosts Brent Trimble and Banoo Behboodi discuss how the professional services talent pool is shifting, both in terms of what employees expect from the organizations they work for and the values they want to see when applying to work at a new company. This episode highlights recent research by McKinsey & Company, which reveals more and more individuals are leaning towards contract work or running their own business as opposed to taking a more traditional career path. This blog is a snapshot of some of the key themes of the episode, focusing on the three main drivers behind the shifting labor market. You can listen to the entire 30-minute episode or read the transcript here.
Why is the Talent Pool Shifting?
In reference to what McKinsey calls the “The Great Attrition,” co-host Brent Trimble lays out a few reasons behind the current state of the labor market and why businesses are experiencing such a high degree of change. One reason is that individuals in the workforce are reshuffling — they’re not only leaving their current position, they’re leaving their current industry entirely and starting a brand new career path. The second reason behind the shifting labor pool is the gravitational pull of temporary, contract, or consultant-like work, which is pulling people away from full-time employee roles
- More Flexibility
When it comes to how employees think about flexibility, co-host Banoo Behboodi says, “ultimately they’re doing what they’re doing because they’re looking for either more flexibility, more meaningful work, compensation or a healthier work-life balance…we seem to have stepped into a completely revolutionized way of looking at what workplace flexibility means.” Working remotely has become the norm, with talent spread across locations, time zones, and even countries. Employees want flexible schedules and options outside of the traditional expectations of commuting to an office and reporting Monday through Friday, nine to five. - Healthy Work-Life Balance
Core to the change in the labor market is a fundamental shift in how people approach a healthy work-life balance. People want to be able to both work and take care of responsibilities at home without the fear of burn out. Brent refers to this evolution as people “reassessing the demands of life…re-evaluating and maybe looking at all this time that traditionally they would have spent either commuting or on business travel and now saying, let’s fill this with something else.” Being able to work not just remotely, but work for yourself or on a contract-basis gives individuals some time back that they did not have before. They are looking for jobs that allow them to have a healthy and balanced life outside of the “office.” - Opportunities for Career Advancement
In today’s market, individuals expect the opportunity to learn, evolve, and advance within an organization. Banoo points out that “one of the top motivators is career development and advancement and what companies are doing for them from that perspective…There should be paths for individuals that are comfortable being individual contributors to also make career advancements.” In McKinsey’s research, 41% of individuals being surveyed chose to leave their job due to lack of career advancement opportunities. You have to be willing and eager to invest in your employees if you would like to attract and retain top talent.
How to Adapt to the Changing Labor Market?
Nearly all industries are feeling the impact of the shifting labor market. While the task of adapting to new expectations and shifting values may seem daunting, Brent provides three suggestions for where to start.
- Sharpen your traditional employee value proposition and provide career development options.
- Build a non-traditional value proposition — flexibility, personal relationships between employees, positive and engaging culture, and different forms of career progression — and make it more personal.
- Broaden your talent sourcing approach, looking at people with non-traditional backgrounds.
Want to Learn More?
If you’re interested in learning more, you can listen to the entire 30-minute episode or read the transcript at this link. Subscribe to the The Professional Services Pursuit Podcast for expert advice, trends, and best practices surrounding professional services.