Today’s talent market is unlike any other in history, with many referring to it as the Great Talent Race. Employees have more opportunities than ever before, and they aren’t afraid of taking them.
Looking at macro-economic trends, there are two key factors driving the intensity in the talent market:
First, the unemployment rate is the lowest it has been in 15 years, meaning those that want jobs have them. This makes recruiting talent difficult as new employees must be poached away from other companies.
Second, job openings have climbed to record highs, meaning that there are a very large number of jobs to fill. Employees looking for new opportunities have a large selection to pick from, making recruiting and retaining talent even more challenging.
The world has changed, and it is harder to attract and retain talent than ever before.
Winning the race for talent
70% of employees say it’s important to them to work for a company that engages in corporate social responsibility, per a recent Fidelity study.
Further, according to a Cone study, 75% of employees would take less pay to work for a socially responsible company. Social impact programs not only help recruitment efforts, but they also have a significant effect on retention as well – a big concern today, when the competition for top talent is more intense than ever before, and attrition is employers' biggest talent-related cost center. Data shows that companies with giving and volunteering programs have 2.3 times the employee retention rate than those without one.
To win the talent race, employers must prioritize purpose as they do profit. Employees expect it, even demand it. Winning companies see the rise of corporate citizenship as the competitive differentiator that can simultaneously boost employee loyalty internally and enhance employer brand externally.
It is critical when developing a social impact strategy that you focus on taking action. Employees don’t need to look far to find examples of companies making statements that aren’t backed by action. Oftentimes those companies are questioned and challenged doing more harm than good to their reputations. In the age of social media and the speed at which information can travel, it is critical organizations back their words with action, or they risk their efforts doing damage to their brands.