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“A red alert is flashing for employers. Many are ignoring it.”

That’s a headline from Business Journal, and I completely agree.

I’m sure it’s behind a paywall, so some highlights here:

  • A tight labor market is the new normal, and it’s because of “math, missed opportunities, and misaligned policies.”
  • Businesses need to be prepared for a workforce with fewer employees.
  • Employers need to be prepared to pay more for top talent because that talent will be harder to come by.
  • Talent planning needs to be looking 5 years ahead to ensure long-term viability, even though the pressure is to just focus efforts on surviving the year ahead.

Their 3 tips for addressing the issue:

  1. Rethink your hiring practices.
  2. Develop a workforce plan.
  3. Be flexible.

I agree with all of those AND will add a critical 4th:

4) DON’T BACK OFF ON DEVELOPING YOUR TOP TALENT AND TEAMS.

When tightening the purse strings, leader and team development are often some of the first line items cut.

Retaining Talent In A Tight Labor Market | Cynthia Farrell | 110 West Group

The ramifications of cutting these dollars are that your top talent will leave–because for them, the job market will remain awash in opportunities, including those where their employer will invest in their careers.

And as top talent leaves, your teams will fall into dysfunction.

If you want to not just survive the next year but thrive for the future, don’t back off on developing your top talent and teams. You will reap the dividends.

Which of these ideas do you think is most important for facing down the talent shortage? And what other ideas do you have?

PS–I’ve got a deep well of high-impact approaches for developing leaders and teams, all of which scale to meet my clients where they’re at. If you need help, drop me a note, and let’s chat.

#leadership #talent #talentshortage

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