July 2022
TALENT TRENDS
TABLE OF CONTENTS
3 REMAINING COMPETITIVE IN THE CONTINUED BATTLE FOR TALENT
6 FUTURE OF WORK: HOME VS THE OFFICE
8 CAPITALISE ON A DIVERSE TALENT POOL
10 ESG: IMPLICATIONS FOR TALENT
WELCOME Over the last six months as we have begun to rebound from the pandemic, we have seen several evolving trends across the global resourcing and talent market. Firstly location. The shift to remote working has led to changing perceptions about the workplace and the most efficient and suitable balance for remote work. Every company is different and the right hybrid model will vary depending on the individual requirements of its teams and the employees that sit within those. Secondly the market is now strongly candidate driven. Some candidates are often considering multiple opportunities at the same time and this is affecting salary levels and fuelling candidates’ aspirations for flexible working.
TALENT INSIGHT . EXECUTIVE SEARCH . RESEARCH & ASSESSMENT
1
Thirdly we continue to see a natural trend towards increased diversity, equality, and inclusion (DEI) as our clients look to retain and attract expert knowledge and skills. Diversity and inclusion are paramount when retaining and attracting employees and demonstrating organisational culture and goals. Finally, a commitment to ESG is incessantly important. Talent is increasingly influenced by a firm’s integrity and wider positive impact. Grant Harrison, Director & Senior Analyst at GreenBiz Group believes that “employees’ expectation of an authentic, transparent and data-driven commitment to tackling the climate crisis is here to stay.” 1 In this publication we explore the ‘battle for talent’ and the challenges facing senior leaders as they fight to attract the best talent pools. Findings from the Visier Deloitte People Cloud Survey, 2022 showed that 70% of executives believe that with better people data, they could make decisions faster and address retention, workforce planning and talent attraction more effectively. The report finds that in today’s talent market, retention is not just an HR problem but a serious–even existential–business concern. 2
TALENT INSIGHT . EXECUTIVE SEARCH . RESEARCH & ASSESSMENT
9 2
REMAINING COMPETITIVE IN THE CONTINUED BATTLE FOR TALENT: LOCATING TALENT IN YOUR EXISTING AND FUTURE WORKFORCE The pandemic has accelerated a change in labour market dynamics. Companies are having to flex and adjust to keep up. In a PwC survey in June 2021, almost 90% of executives said their company was experiencing higher turnover than normal. This is also referred to as "The Great Resignation". There is a burden on companies as they face growing pressure to increase wages in the fight to find and retain talent. Candidates currently have higher salary expectations and are often attracted to a career move when incentivised by increased compensation and flexibility. A candidate could previously expect a 5-10% uplift in salary when moving roles however now we are seeing an increase of as much as 15-20%. Our clients are increasingly asking us to guide them on salary levels. We collect live, real-time global salary data so we can accurately advise on compensation at various levels and for different industries. Thorough research saves time and money, ensuring that you get to, and retain the right talent. Julia Connor, Client Director at Taylor Osborne
While the acceleration of working from home has exposed a larger talent pool, companies have had to rethink operation and management strategies. Skill shortages and geographic constraints remain significant barriers to hiring.
TALENT INSIGHT . EXECUTIVE SEARCH . RESEARCH & ASSESSMENT
3
Companies are being forced to revaluate their job descriptions and prioritise skills, needs and wants for a new hire to bring someone on board. Transparency, brand awareness and candidate care have become essential in hiring strategy, preventing ghosting, an increasing problem in this competitive market. Looking at the global market, it is likely that skills development and the flexibility to hire beyond commuting distance or overseas, where necessary, will become increasingly important. Through access to a global talent pool, teams and workplaces have become more distributed. Although technology can enable employees to work without geographical restrictions, there are other challenges that come with that like onboarding, team collaboration and legal implications.
TALENT INSIGHT . EXECUTIVE SEARCH . RESEARCH & ASSESSMENT
4
We have benchmarked employment considerations and legislation across different geographies to assist our clients with their hiring strategy and provide insight into external candidates. The regulatory environment is challenging in some locations. Those who work remotely from a foreign country may be bound by the local employment rights in the host country because they are working from that location. Therefore the talent may be located there but legal restrictions make it difficult to hire from that area. In summary, we expect hiring demand to remain strong. Competition for talent is intense. It is fundamental that companies are increasingly transparent in sharing information as they compete for this talent. Clear information enables better processes including fairer pay, more diverse, qualified applicants and a more engaged and productive workforce.
TALENT INSIGHT . EXECUTIVE SEARCH . RESEARCH & ASSESSMENT
5
FUTURE OF WORK: WORKING FROM HOME VS THE OFFICE We asked our network about the future of work including working from home vs the office. All respondents had been offered flexible working by their employers, with a third working 2 to 3 days in the office and the remainder from home. If given the choice, three quarters of the respondents would like to continue to work in a flexible capacity. A recent Bloomberg article explored hybrid working and found that while employees appear to concentrate on productivity and face time, they also prefer more flexible options than the structured hybrid ones on offer. Priorities differ depending on circumstance with personality traits, commuting concerns and childcare responsibilities defining the requirement to be at home or in the office. The majority of those consulted showed a preference for two days in the office with most choosing to separate these days.
3
Firms need to invest in technology and office space to allow for fully flexible working. Less desk spaces and more collaborative working spaces.
TALENT INSIGHT . EXECUTIVE SEARCH . RESEARCH & ASSESSMENT
6
OUR SURVEY RESULTS
Hybrid - 3 days in the office 2 at home Hybrid - 2 in the office 3 from home Hybrid - full flexibility In the office full time Working from home full time 0
10
20
30
40
50
OFFICE VS HOME WORKING Consumer Goods 14%
Director 11%
Associate 22%
Professional Services 43%
FS 22%
Healthcare 21%
INDUSTRY
TALENT INSIGHT . EXECUTIVE SEARCH . RESEARCH & ASSESSMENT
Manager 67%
LEVEL
7
A London law firm recently announced that it would pay employees 20% less than their current salary if they chose to work from home on a flexible basis. However we found that ninety-four percent of those that we surveyed do not think it is fair for companies to cut salaries if people are not based in the office full time.
I do not feel it should be a blanket requirement within a company. Various factors should be considered regarding the role you are in/ work that is being performed/ overlap with direct and indirect teams. Flexibility should be on both sides.
It is likely that formal or informal hybrid working will remain commonplace for some time, however we have started to see a growing number of clients reinstating working full time from the office due to the drive for greater productivity, shared knowledge and a sense of culture. We feel the strong hiring demand and competition for talent mean some companies are having to compromise on their desire for a return to the office to compete in the marketplace.
TALENT INSIGHT . EXECUTIVE SEARCH . RESEARCH & ASSESSMENT
7
CAPITALISE ON A DIVERSE TALENT POOL We have all seen a natural trend towards increased diversity, equality, and inclusion (DEI) as clients look to retain expert knowledge and skills whilst enhancing productivity, building a competitive advantage, and improving their profitability. We think it is important not just to look at race, ethnicity, gender, age and social class but to recognise unique skill sets, such as life experiences and education. It is also important to identify and break down barriers to reach a neurodiverse pool of talent. Many of the algorithms and automated recruitment software tools are missing opportunities. Recent findings in the Guardian showed that some of these new “robot” tools discriminate and use criteria unrelated to work to “predict” job success.
4
As we have seen there is more competition for best-in-class talent. Diversity, inclusion and culture are intrinsically linked to this. In DiversityQ’s article, neurodiverse inclusion is shown to boost productivity, innovation, and lower staff absence. 5 When neurodiverse individuals are able make use of their strengths, instead of trying to overcome challenges, they can spot huge opportunities and find quick, effective solutions to problems.
TALENT INSIGHT . EXECUTIVE SEARCH . RESEARCH & ASSESSMENT
8
When Taylor Osborne interviewed female employees from a selection of corporate companies last year, the overriding response was fear of unconscious bias and assumptions about their capabilities. Many women are still unable to obtain leadership roles because of discrimination, however encouragingly in 2021, the proportion of women in senior management grew to more than 30% and is gradually trending upwards. In terms of talent attraction our research shows that employees are prioritising greater work-life balance and better personal wellbeing over renumeration. They seek a diverse and inclusive organisation. It is evident that building a diverse bench of talent will accelerate growth, encourage creativity, facilitate innovation, and lessen exposure to the risks of global volatility.
TALENT INSIGHT . EXECUTIVE SEARCH . RESEARCH & ASSESSMENT
9
ESG (ENVIRONMENTAL, SOCIAL AND GOVERNANCE: IMPLICATIONS FOR TALENT ESG (environmental, social and governance) has become a business priority and is defining hiring strategy. A present and intensifying climate crisis has triggered demand for skills that encourage a more circular economy. As employers look at ways to reduce their environmental impact, the right people and meeting of ESG objectives will require new ways of working, new roles and new talent. MSCI’s ESG data shows that top employers, as measured by employee satisfaction and attractiveness to talent, have significantly higher scores than their peers. Millennials and Gen Z, who place considerable importance on sustainability and the environment, are expected to comprise 72% of the global workforce by 2029. This will become ever more important in attracting and retaining talent, helping companies to improve employee satisfaction and to attract prospective employees. As the demand for talent increases, there will be a need to create and expand a diverse talent pool with appropriate training and experience to meet ESG objectives. The Chartered Financial Analyst institute (CFA) surveyed over 15,000 current university students and new graduates from 15 markets. Nearly nine in 10 respondents said it was important for them to work in an industry that makes a positive societal and environmental contribution. The CFA stated, “it is now incumbent on companies to adapt to the new realities, such as ESG and hybrid workplaces, in order to attract and retain the young talent we need to help lead us out of the pandemic.”
TALENT INSIGHT . EXECUTIVE SEARCH . RESEARCH & ASSESSMENT
10
The World Economic Forum suggests that organisations that are looking to attract, reskill and retain talent need to be accountable, promote and support ESG objectives and a culture that considers the 6
wider community. This clearly needs to be balanced with broader commercial goals and communicated in an appropriate manner. ESG is broadly defined and whilst environmental and social aspects are of rising importance for candidates, governance aspects can sometimes be seen as less of a priority. We have on-going discussions with our clients on how we can support them to develop and attract these essential skills to support their ESG objectives and believe this will become ever more important in hiring strategies.
TALENT INSIGHT . EXECUTIVE SEARCH . RESEARCH & ASSESSMENT
11
HOW CAN TAYLOR OSBORNE HELP?
JULIA CLARKE Managing Director
We understand talent. We take a consultative research-led approach to bring data to life allowing us to accurately assess talent, competitors and trends across regional and global locations. We can create bespoke solutions for your HR and talent needs.
JULIA CONNOR Client Director
Please contact us: Julia Clarke, Managing Director Email : jtaylor@taylorosborne.co.uk Julia Connor, Client Director Email : julia.connor@taylorosborne.co.uk Susanna Clark, Head of Insight Email: susanna@taylorosborne.co.uk
TALENT INSIGHT . EXECUTIVE SEARCH . RESEARCH & ASSESSMENT
SUSANNA CLARK Head of Insight
PLEASE CONTACT US: LONDON OFFICE Tel: +44(0)203 693 3825 Email: louise@taylorosborne.co.uk SCOTLAND OFFICE Tel: +44 (0)1738 472141 Email: louise@taylorosborne.co.uk GENERAL ENQUIRIES: admin@taylorosborne.co.uk
TALENT INSIGHT . EXECUTIVE SEARCH . RESEARCH & ASSESSMENT
REFERENCES 1 https://www.greenbiz.com/article/winning-war-esg-talent-era-distrust 2 Deloitte People Cloud Survey, 2022 The Future of People Management | Moving from data to insights and action 3 https://www.bloomberg.com/news/articles/2021-12-30/the-flexible-hybrid-work-schedule-thatemployees-actually-want 4 https://www.theguardian.com/us-news/2022/may/11/artitifical-intelligence-job-applications-screenrobot-recruiters 5 https://diversityq.com/what-every-company-will-need-for-neurodiverse-inclusion/ 6 https://www3.weforum.org/docs/WEF_Towards_a_Reskilling_Revolution.pdf https://www.marshmclennan.com/content/dam/mmc-web/insights/publications/2020/may/ESG-as-aworkforce-strategy_Part%20I.pdf
TALENT INSIGHT . EXECUTIVE SEARCH . RESEARCH & ASSESSMENT