Navigating an Uncertain Labor Market
The labor market continues to be uncertain as we enter 2023. What can companies do to maximize retention and acquisition?
The trucking industry will likely see a continued slowdown in driver recruiting as demand continues to normalize in 2023. Growth positions will slow but there will still be demand for key, professional positions. Companies will try to keep their key people on the books even if their businesses slow down.
Among the biggest concerns for CEO’s heading into 2023 are workforce issues. According to a survey by the Conference Board, talent ranks #1 for CEO’s. While some industries have slowed their hiring, many companies still need to add workers as fast as they possibly can. The talent pool continues to be very tight. According to the Bureau of Labor Statistics, there were over 11 million job openings at the end of December 2022*. As a result, there will continue to be intense competition for top-level candidates. This means that it becomes even more important for companies to do everything that they can to retain the key people that they have.
Our Talent Solutions team has been helping firm clients manage their talent during these post pandemic times. Here are some areas where we have seen the most impact in both retention and attraction of talent.
- Review compensation companywide
In a market as competitive as this it is vital to know that your current compensation structure is in line with the current market. When salary reviews are done on a regular basis useful insights are gained into how overall compensation may impact employee engagement, retention, productivity, and growth.
- Succession planning
Companies sometimes put off succession planning when times are uncertain, but at time that could be a mistake. Having upheaval in a company’s Senior leadership can, when times are as challenging as they are now (supply-chain issues, rising costs, talent issues) create a significant competitive disadvantage. Having these planning conversations, not only regarding senior leaders but with employees across the entire organization, will assure that employees are seen as vital contributors, leading to better retention.
- Consider a more flexible workforce model
One of the top considerations that our Search consultants hear as we interact with candidates is workforce flexibility. This impacts not only your ability to attract talent but significantly mitigates attrition. Improved productivity, satisfaction, and employee mental health are just a few of the advantages in considering a more flexible model. For drivers, consider
- Prioritize Wellness
The Covid-19 pandemic has illustrated the importance of wellness for many in the workforce. Having benefits that promote mental health, physical health and financial health will create a competitive advantage as it relates to both employee retention and attracting new talent. While salary is still a strong driver for most employees, do not dismiss the importance of these wellness benefits.
- Re-recruit your own employees
Companies need to protect the valuable assets/staff they already have. Organizations that invest mostly on external recruitment are missing a key directive, which is making sure they are aware of what is driving employee satisfaction. Set up regular conversations with staff or send out surveys to gauge employee satisfaction. Stay on the lookout for new and creative benefit offerings that will appeal to your group. It’s much easier to keep the people you have, than having to find someone new.
These strategies for increasing retention and acquisition are straightforward, but not necessarily easy to put in place. The key is commitment at the senior levels of the organization. And given that employees are still looking at their options, the time is now to put strategies in place.
*US Bureau of Labor Statistics Job Opening and Labor Turnover Survey
Bob Pavao Robert.pavao@claconnect.com
Search Consultant, Talent Solutions 781-402-6333
Quincy, MA
Bob is a senior search professional with a progressive track record of matching exceptional talent with transportation and logistics entities of all sizes across the country.
He has substantial recruiting knowledge in finance and operations. He brings this knowledge and passion to his clients and partners with CLA. His focus is to improve organizational operations and function in a servant-leader capacity
Andy is a CPA and trusted advisor with 15 years of experience providing tax, accounting, assurance, and consulting services to transportation industry owners and operators. He is a tax principal with CLA in the Minneapolis, MN office. He also consults with high net worth individuals and owners of closely-held transportation businesses on all aspects of tax planning, estate planning, and retirement planning. Andy is also the tax leader for transportation industry across CLA.
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