Inflation may have cooled, but recruiting and retention challenges continue to put pressure on people-focused employers. Building and maintaining a high-performing workforce remains one of the most important priorities for organizations across every industry.
Competition for talent also remains intense. As Fast Company noted, there were 11 million open positions and only 6.5 million available workers during the height of the labor shortage, highlighting a significant imbalance between supply and demand in the labor market. The challenge extends beyond filling open positions. Organizations must also address growing skills gaps, adapt to changing workforce expectations, and prepare employees for future demands.
According to the ManpowerGroup Employment Outlook Survey, employers continue to report strong hiring intentions, while 36% of respondents report difficulty filling positions that require IT and data skills.
These four priorities for people-focused employers can help organizations build a stronger, more resilient workforce.
Put People First
Employees continue to face growing pressures both inside and outside the workplace. As expectations around flexibility, well-being, and professional growth evolve, organizations must continue adapting their approach to employee engagement. Gallup describes employee well-being as the new workplace imperative. In its State of the Global Workplace report, 41% of U.S. employees reported experiencing daily worry, while 50% reported experiencing daily stress, both exceeding global averages.
Supporting employee well-being requires more than offering benefits. Organizations must continuously evaluate and strengthen their employee value proposition (EVP).
Continue Investing in Diversity, Equity, Inclusion, and Belonging
Diversity, equity, inclusion, and belonging remain closely connected to employee engagement and organizational performance. One ongoing challenge is the lack of diversity in leadership roles. According to Gartner, the advancement of underrepresented employees often slows in the middle of the organization, resulting in slower promotion rates and fewer leadership opportunities.
Belonging has a measurable impact on business outcomes. According to Harvard Business Review, employees with a strong sense of belonging demonstrate:
- A 56% increase in job performance
- A 50% reduction in turnover risk
- A 75% reduction in sick days
Build a Skills-Based Workforce
Technology, customer expectations, and business priorities continue to evolve rapidly, increasing the need for organizations to upskill and reskill their employees.
At the same time, employees expect opportunities for professional development. According to one survey, 91% of employees want more training and development opportunities, while 75% believe their employers prioritize recruiting new talent over investing in existing employees.
A skills-based approach creates a more adaptable workforce while supporting internal mobility, employee satisfaction, and retention. It also helps organizations respond more effectively to changing business conditions.
This investment has become increasingly important as HR leaders report a 25% increase in time spent on talent acquisition. Developing existing employees can help reduce that burden while keeping critical skills within the organization.
Strengthen Data Literacy Across the Organization
As employers become more people-focused, they must also become more data-driven. HR leaders and business executives are moving beyond basic reporting to use data and analytics to support decision-making across recruiting, performance management, compensation, and workforce planning.
According to Gartner, data literacy became a core component of more than 80% of data and analytics strategies. Developing these skills enables employees to use both existing and emerging technologies more effectively.
People-focused employers that have embraced digital transformation are already seeing results. According to PwC’s Pulse Survey, 60% of executives identified digital transformation as their most important driver of growth.
Building a Stronger Workforce Starts With People
Creating an effective people strategy requires organizations to continuously evaluate how they attract, develop, and retain talent. Workforce expectations will continue to evolve, and successful organizations will remain flexible enough to evolve with them.
Through its staff augmentation services and project-based workforce solutions, HNM Systems helps organizations build stronger teams equipped to meet today’s challenges and prepare for tomorrow’s opportunities. Investing in people, developing critical skills, and creating a culture of belonging remain some of the most effective ways to achieve long-term growth.
