🪢 Talent Tug of War

For anyone following the U.S. Bureau Labor Statistics, it may appear to be an employer’s market.

However, Workday’s Global Workforce Report was released on Tuesday and it comes with an ominous subtitle - “Restoring Trust Before Your Top People Leave”.

So what exactly is happening in the workforce? Let’s take a look.

1H 2024 in Review

Application Rates

Hiring is recovering, but the job market is still tough. The report highlights some pretty wild numbers.

• 19 million job requisitions (+9% YoY)

• 173 million job applications (+31% YoY) 😱 

• 13 million offers and agreements (+9% YoY)

• Referrals increased by 30% 

So we have jobs and accepts climbing at a steady rate, but more applications than ever before AND more referral hires than ever before. Sounds like an absolutely brutal time to be applying for jobs.

Using AI and ML for hiring

With more applications than every before, how the heck are recruiters managing to get through them all? If at all…

They’re using AI. In fact, AI is replacing most of the first stages of the hiring process including

1. Screening resumes

2. Assessing candidates

3. Conducting initial interviews

So we have more candidates than ever, more tools to review them than ever, but are still taking referrals over applicants more than ever. Are the tools failing us or are we failing candidates?

Attrition Rates of Top Employees

High-potential workers are more likely to leave. Even though the job market is still tough, freezes are showing signs of thawing and top performers have been white-knuckling it until they can comfortably leave.

Who’s a flight risk?

• Healthcare

• Communications, Media, and Technology (is 150% MORE LIKELY TO LEAVE than 6 months ago - wild)

• Public Sector

Why are they leaving?

Burnout, mostly. One in four employees within an organization are at high risk of burnout.

How to keep your employees?

It’s pretty simple. You hire smart people. Smart people have options (even in a tough job market). Why the hell are you their #1 option?

According to the data, there are some proven tactics to restore trust and increase retention.

1. Generate a bigger sense of accomplishment and meaningful work

2. Offer flexible and hybrid working

3. Offer the right rewards at the right time in their tenure

4. Allow and encourage internal mobility

TLDR

The global workforce landscape in 2024 is complex. While high application rates might suggest an employer's market, the increasing attrition of high-potential employees tells a different story. We're seeing a paradox where hiring processes are more automated than ever, yet personal connections through referrals are gaining importance.

Key takeaways:

1. The job market is competitive, with applications far outpacing job openings.

2. AI is revolutionizing hiring processes, but may not be solving all recruitment challenges.

3. Top talent is at risk of leaving, particularly in sectors like Healthcare and Tech.

4. Burnout is a significant factor driving employee turnover.

Moving forward, employers need to focus on creating environments that not only attract but truly retain top talent. This means going beyond competitive salaries to offer meaningful work, flexibility, appropriate rewards, and opportunities for growth within the organization.

As we navigate this evolving landscape, it's clear that the most successful companies will be those that can balance technological advancements in hiring with a genuine focus on employee well-being and development.

The challenge for leaders is clear: restore trust, create value for your employees, or risk losing your best talent to those who will.

That’s all for now, pals. See ya next week.

Eryn