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When a top executive resigns from a company, it’s always big news. In today’s business world, these resignations are becoming more and more common. The talent pipeline is the cause of this destabilization, and it must change! What would this change look like? That’s what we’re going to discover.
What Is the Talent Pipeline?
The talent pipeline is a term used to describe the process by which companies identify, recruit, hire and train new employees. When a company needs to fill an available position, it normally starts with a job posting on a job board.
From there, candidates apply for the job using their résumé and cover letter. Those who move forward in the process then take a screening test and conduct interviews with hiring managers or human resources professionals.
It aims to discover the ideal person for each function in your firm. But this isn’t always easy when so many applicants and hopefuls are vying for each post.
Many companies are struggling with this problem because of a significant shift in the workforce: Most millennials no longer look for traditional jobs that offer stability but instead want flexibility and freedom from bosses over everything else. As a result, they’re more likely to leave their jobs sooner than previous generations at similar ages (eight years compared with ten years).
What Makes a Great Talent Pipeline?
The best talent pipelines are built on solid relationships. They create opportunities for candidates to get to know the company and its culture to make informed decisions about whether it’s right for them. And they provide opportunities for employees to develop their skills by working with other departments or taking on new roles within their current team.
The best talent pipelines are also built on an open and transparent hiring process. Candidates should know what’s expected of them throughout the interview process, from applying online to submitting all required documentation for their application to be considered. And once they’ve been selected as a candidate, they should be kept informed about upcoming steps in the interview process at regular intervals: when they’ll hear back from recruiters about their status (either “we’re still interested” or “we have another candidate”), when they’ll hear back from hiring managers about whether there are any more interviews scheduled, etc.
Why do Employees Leave?
When a candidate resigns, it’s not just the manager who feels the loss. The organization loses productivity and revenue, and its replacements take time to ramp up. It’s essential to understand why employees leave so that you can prevent it from happening again.
There are several reasons why people resign from their jobs:
1. Because they can.
Leaving a job used to be stressful; it isn’t anymore. The cost of changing employment has drastically decreased. There is significantly less shame attached to having a gap in your résumé. Due to the current labor crisis and the increased acceptability of remote work, employees in numerous industries feel convinced that they can find a job anywhere, whenever they are ready. Thanks to word of mouth and social media sites, they have more information about the labor market than ever before, so they don’t need to rely on traditional recruiting resources. They’ve seen friends and coworkers leave and survive, believing they can, too.
2. Poor Management
Employees leave for a variety of reasons, one of which being poor management. And it’s not just about micromanagement. It’s about how a manager treats people and how they communicate with them. Do you know what your managers do to their teams? Are they creating an environment that is conducive to growth? Or are they stifling innovation? If you want to know why people leave, ask them. Talk to your employees about their experience with managers, and see what they say.
3. Because they are exhausted.
Because they are exhausted, companies don’t always realize how much stress they’re putting on their employees until they get burned out and quit. Each year, Gallup asks workers about the sources of stress at work, and in 2014, “work overload” was by far the most common source of stress at home or work — with 33% of respondents citing it as one of their top two sources of stress at home or work. By comparison, only 13% said they felt overworked at home or work in 2010 — when the Great Recession was still fresh on people’s minds.
4. Low salary or benefits
Even if you work for a company that offers adequate pay and benefits, other factors may make your salary lower than what you want it to be. Maybe the company is not doing as well financially as you’d hoped, or they don’t offer any bonuses or stock options (which can be attractive to many employees). The point is that many companies have issues with retaining employees simply because they aren’t paying enough money. If this is the situation in your organization, now is usually an excellent time to ask for a raise.
5. Lack of Progression Opportunities
The number one reason employees leave their jobs is a lack of progression opportunities. According to research, 70% of people who leave their job do so because they feel undervalued and unappreciated. They don’t feel like they’re being allowed to progress and don’t see their work’s long-term value.
6. Unfair Treatment by Managers or Colleagues
Employees like to be treated fairly and know when they’re not. When your company doesn’t deal with harassment, bullying, or favouritism quickly and effectively, it sends a message that such behaviour will be tolerated, making employees feel uncomfortable, insecure, and unappreciated.
Why do Some Employees Return?
According to research, employees who resign from a company often return to it. The reasons vary, but here are some of the most common:
- The employee was unhappy at the company and felt they needed to quit to preserve their self-respect.
- The employee was unhappy at the company but also felt that no other job would be better.
- The employee wanted more money, but after being out of work for a while realized that there were other things more important than salary.
- The employee wanted more responsibility, but after being out of work for a while realized that there were other things more important than responsibility.
- The employee needed change to grow professionally, but after being out of work for a while realized that there were other things more important than professional growth.
How your leadership can lower resignation/ how leadership can improve retention
Regarding employee retention, several factors can affect whether or not an employee decides to stay with your company. Leadership is a critical aspect of employee retention. Managers and leaders must understand how their actions and decisions impact employee retention.
Here are some ways that leadership can impact employee retention:
- Leaders who understand what their people want and need and how to encourage them are more likely to keep them.
- Be aware of your team’s values. You should know what your employees value, what they feel strongly about, and what they care about. This will assist you in determining how to connect with them on an emotional level.
- Be understanding of their needs. If one of your employees has been through a difficult situation in their personal life (e.g., divorce), you may give them some time off to deal with it without worrying about work issues. Empathy is essential here – don’t just assume that everything is okay because they aren’t telling you otherwise.
What to Change
Talent loss is a severe problem, but it doesn’t have to be catastrophic. It’s not too late to change the way you think about turnover and develop a new strategy for keeping top performers in your company. Change the way your talent pipeline functions by changing:
- The hiring process
The hiring process has long been a brutal experience. It’s when candidates have to prove themselves over and over again.
The typical hiring process is flawed because it is built for firms unsure of what they want. If you’re interviewing people for a job, you should know exactly what that job entails before you even start recruiting.
- Candidate Experience
The candidate experience is often overlooked, but it’s a vital part of the recruitment process. How candidates feel about their experience will directly impact their thoughts about your company.
Candidates need to feel like they’re being treated with respect and professionalism throughout their application process. This means that recruiters should respond promptly to any communication from candidates and treat them with care and courtesy.
- New capabilities for new demands
Previous employment experience is still the most crucial consideration in hiring decisions. Many firms brag about being progressive hirers, but job descriptions have scarcely altered and are still based on archaic criteria.
CEOs firmly set in their long-standing success playbooks do not survive in turbulent times. In reality, most company executives desperately need new talents to keep up with today’s changing expectations.
- Don’t forget EQ
According to research, EQ (emotional intelligence) is a better predictor of success than IQ at the C-level. Most leaders ascend to the top because they are intelligent but frequently fail at the top because they cannot effectively influence their organization.
Leaders that foster a culture of inclusion and have an open mind about career advancement are frequently the most effective.
It IS TIME For a Reset
Talent assessment necessitates development, not revolution—boards cannot be expected to pick a CEO without conducting interviews. However, there must be a paradigm shift in how judgments are made based on new criteria. More data, faster processing, and more involvement with the candidate are all required.
The following are some particular modifications that can be done to pivot the talent assessment process:
RESET JOB SPECIFICATIONS
Job criteria and position descriptions should be revised to include resiliency, flexibility, curiosity, and inclusive leadership attributes. Previous experience should not be over-indexed. Many eligible and skilled individuals lack experience, yet this does not preclude them from success. Consider what they can and will do.
- RESET THE PROCESS
Talent evaluations are frequently repeated as individuals advance through their careers, but they are also performed at the start of a new profession or role.
If you’ve never conducted an assessment with someone before, start fresh. This means that if you’re using a survey or other tool that asks respondents to rate themselves on specific attributes, don’t look at those results from previous assessments.
- RESET DECISION-MAKING DATA
Reset data for decision-making to include additional psychometrics, analytics, and predictive data. Previous experience should not be substituted because it explains what a candidate has done or mastered. However, knowledge should be used cautiously because it does not account for the person’s new environment.
- RESET THE CANDIDATE EXPERIENCE
Restart the hiring process from the beginning to ensure a great candidate experience at every stage. Maintain constant communication with the organization and convey the value proposition. Instead of five-hour interviews, try a series of dialogues and exciting interactions.
The job market and employee expectations have never been higher, and recruiting strategies are evolving to find and attract top people. However, to prosper in today’s talent market, companies must modernize their approach to talent assessment.
Although boards and investors profess to have a talent sniffer, they haven’t kept up with the changing dynamics in evaluating top CEOs. It is past time to reconsider how we select leaders for the future.
What to Look for in a Talent
In an increasingly competitive hiring market, it’s critical that your company can attract top talent. But as the talent pipeline changes, what do you need to look for in a candidate?
Before you hire, consider the following critical questions:
- What’s the right culture fit? Hiring passionate people who want to get stuff done is critical. And they won’t stick around if they’re not passionate about their actions.
- What’s their technical skill set? They must have at least some experience with the tools they’ll be using on the job. If they don’t have experience, that doesn’t mean they aren’t good candidates — it just means there will be an onboarding period where you’ll need to help them learn how things work in your company.
- How does this person handle stress? Stress and pressure come with any new job, but if someone doesn’t take stress well or has a history of burnout, it could be an issue down the road.
Talent is the fuel for innovation and growth in businesses of every size. But to build a strong talent pipeline, you need to understand what drives your best employees to perform. If you don’t have this insight, you won’t understand why your current tactics aren’t working or where and how they can be improved.