Home Business Staff Retention a Top Concern for Over Half of Businesses Amongst Tough Recruitment Landscape

Staff Retention a Top Concern for Over Half of Businesses Amongst Tough Recruitment Landscape

by maria
gawdo

New research from LHH unveils new recruitment and retention challenges facing businesses

  • Businesses risk a knowledge drain as over half of L&D leads fear losing skills due to ageing workforce
  • Nearly half of HRDs struggling to recruit talent, with 50% claiming their recruitment practices are out of date
  • 8% of workers have quit their jobs due to lack of training, while nearly a third complain of taking on new responsibility without training or support

London, United Kingdom,LHH, the world’s leading talent development and career solutions company, reveals the immediate retention and recruitment challenges facing businesses. Staff retention is one of the top three issues facing businesses according to HR Directors, with 53% claiming that business leadership is concerned with this.

LHH conducted a study with HR Directors (HRDs), Heads of Learning and Development (L&D leads) as well as 2,000 employees on the challenges facing businesses in 2022 and beyond. The study uncovered issues surrounding both the recruitment and retention of talent within organisations.

Businesses are facing a growing skills gap, not just in the changes brought upon by the pandemic, but as key talent exits the business. For example, over half (55%) of L&D leads believe that businesses are at risk of losing certain skills due to an ageing workforce.

Nearly half (47%) of HRDs admit that it’s hard to recruit new talent to close this gap, and the study pinpointed several reasons for this. 43% claim that in the current market recruiters are not presenting them with suitable candidates for vacancies. 50% even went as far as saying that their organisation’s recruitment and assessment processes are outdated and not fit for purpose. These challenges are also compounded by an uncertainty about what skills are needed in the long-term; almost a quarter (23%) of L&D leads admitted they are not confident about what skills the business needs in the next five years.

Redeployment and Retraining to Avoid Redundancies

In the face of these recruitment challenges, businesses could be missing out on the opportunity to upskill or redeploy existing talent. The research found that over a third (39%) of L&D leads believe that there is too much focus on hiring new talent as opposed to retraining current employees – a sentiment shared by 48% of HRDs.

Many organisations are already taking this step, with 49% of HRDs claiming that they are primarily focused on retraining current employees in order to meet the skills gap. 60% of L&D leads are also actively training younger workers within their organisations to ensure no knowledge is lost due to an ageing workforce.

In many cases these efforts to upskill could help businesses avoid having to make redundancies. In fact, over half (57%) of HRDs said they are looking into retraining or redeployment as an alternative to redundancy wherever possible. A further 15% expressed that they want to use these methods to stave off having to make redundancies, yet do not have the resources to do so.

Commenting on the findings, JC Townend, CEO of LHH UK and Ireland said: “Recruiting challenges have hit their ‘perfect storm’. The changes accelerated by the pandemic mean that the needs and skills requirements of many organisations have shifted, with many in unchartered territory. Combine this with a tight labour market and the unique retention challenges facing businesses after nearly two years of remote working and many businesses are being left with a huge skills gap.”

“It’s therefore positive to see that some are actively looking within the business to upskill, retrain or redeploy existing talent that they already have. This will help both fill key new roles while also improving retention as employees feel their companies investing in their development. These findings are a positive step in the right direction, although we’d like to see a higher proportion of businesses explore this as a viable option.”

Workers Demand to Be Retrained

Retraining and redeployment can improve issues with staff retention.

When we asked employees how their career had been impacted since the start of the pandemic, 20% said that their role has changed but that they have not received any training from their employer. A further 32% have taken on extra responsibilities without a promotion or extra support.

8% of workers said that they have actually handed in their notice in the past 18 months due to being denied a training request, with a further 14% saying this has caused them to seriously consider leaving their job.

“There appears to be a disconnect with the needs of the business and the support being offered to employees.” JC Townend adds. “Our research indicates companies know that retraining and redeploying workers is required to meet recruitment challenges, but the employee research indicates that they are not getting the support and training they need to do this. Business leaders need to be working closely with L&D leads and HRDs to ensure they are properly retraining and redeploying employees with ample support.”

About LHH

At LHH, we exist to help people, teams and organisations find and prepare for what’s next. Our end-to-end HR solutions future-proof organisations and careers all over the world. Through Advisory, Career Transition & Mobility, Insights, Learning & Development and Recruitment Solutions, we enable transformation, and our job is never done because there’s always another tomorrow to prepare for.

We make a difference to everyone we work with, and we do it with local expertise, backed by global infrastructure and industry-leading technology. LHH’s over 8,000 colleagues and coaches span over 60 countries worldwide, working with more than 15,000 organisations, a majority of Fortune Global 500, and nearly 500,000 candidates each year. Together we address needs across the entire talent journey, helping organisations build their capabilities and individuals build brighter futures. There is a world of opportunity out there. Let’s get to work.

LHH is a part of the Adecco Group, the world’s leading talent advisory and solutions company, headquartered in Zurich Switzerland.

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