Talent shortage solutions: A forward-thinking strategy for business growth
What comes first as you fix the talent shortage? We can debate the age-old “chicken vs. egg” question, but it boils down to preference. In solving the talent shortage puzzle, I advise you to start from an unusual place—by first identifying your high performers. These individuals are the backbone of your organization, and their contributions are invaluable.
By upskilling your managers in active listening skills and ethics, you engage your existing staff and retain these high performers as you implement your growth plan. With the existing workforce secured, we can start looking to the future.
The next step forward is to set a strategy for the organization’s future, and then align the workforce to the organization’s next steps.
Step 1: Strategic planning
Move from best practices to “next practices,” a term I use to refer to innovative approaches that anticipate future needs. Make the people strategy the core of the business strategy. Strategic planning needs a fresh perspective. Instead of sticking to best practices based on past success, shift towards the “next practices” to go where your organization needs to be.
Have a human resources professional facilitate your planning session. Unlike marketing or operations, HR focuses on people, the heart of any business. Their expertise in integrating people strategy into the core business strategy ensures alignment between organizational goals and employee needs. Recognizing their crucial role in this process is essential for fostering a sense of importance and value in the team.
This approach fosters innovation, agility, and resilience, driving long-term success. When people are prioritized, engagement and productivity soar, creating a sustainable competitive advantage. In essence, making the people strategy central to the business strategy isn’t just brilliant—it’s necessary to future-proof your organization by solving the talent shortage.
Step 2: Job-description alignment
Design the future organization and define the workforce, then create a set of job descriptions based on the new design. Defining new job descriptions that align with the strategic plan is crucial for executing your vision effectively. Start by identifying key roles that directly support your strategic objectives. Involve HR professionals to ensure these roles are designed clearly focusing on the skills, behaviors, and outcomes needed to drive success. Job descriptions should emphasize adaptability, innovation, and cross-functional collaboration, reflecting the shift toward “next practices.”
Consider the evolving landscape of work—embrace hybrid roles and flexible responsibilities that can adapt as the organization grows. Clearly outline expectations, key performance indicators, and development opportunities to attract top talent and retain high performers. By aligning job descriptions with your strategic plan, you create a cohesive workforce equipped and motivated to achieve the organization’s goals. This proactive approach aligns talent with strategy and fosters a culture of continuous improvement and future-readiness.
Step 3: Compensation benchmarking
As you strategically align human capital needs with organizational goals, benchmark the proposed total compensation plan against similar positions in the local marketplace.
Start by analyzing compensation data for similar positions in your local marketplace. This ensures that your compensation packages are competitive, attracting and retaining top talent. Benchmarking against the local marketplace also helps you stay abreast of industry trends and ensures that your compensation practices are fair and transparent, enhancing your employer brand.
“Any organization that has not completed market benchmarking and a compensation review within the last two years may find itself falling behind the market. Benchmarking and reviewing your total compensation package is imperative during the talent shortage,” warns Cassandra Faurote, CCP, SPHR, SHRM-SCP, founder and CEO of Total Reward Solutions. “Things are going to get chaotic and stay that way until around 2030, and you need to keep your people—especially your high performers. You need to ensure you are truly finding ways to reward your high performers during this critical time.”
There are numerous components of “total compensation”: base salary, bonuses, benefits, and non-monetary perks. This refers to the complete package of rewards and benefits that an employee receives in exchange for their work. Align these with industry standards and your company’s strategic objectives. Collaborate with HR professionals to ensure your compensation strategy reflects both market trends and organizational values.
Benchmarking effectively means you stay competitive and demonstrate your commitment to valuing employees. Transparent and fair compensation practices enhance employee satisfaction and loyalty, driving overall performance. Remember, well-compensated employees are more engaged and motivated, directly contributing to achieving your strategic goals.
Step 4: Leveraging data and AI
Use new tools for a new world. Data guides the future, and AI can be a great tool for data analytics. The power of information, harnessed creatively, can transform your talent pipeline and build organizational sustainability. Leaders can analyze risks and make effective decisions by combining predictive analytics with generative AI and critical-thinking skills. This innovative approach not only enhances your talent-management capabilities but also instills a sense of optimism and confidence in your organization’s future.
Karl Ahlrichs is a national speaker, virtual facilitator, and author. He has decades of strategic HR consulting to all industries, using risk management and organizational development theories to bypass “best practices” and move directly to “next practices.”
