The tides of the job market are quickly turning, and in 2022, one could argue that the biggest wave being made is seen in the challenge of retention. The hiring continuum is currently under duress thanks to phenomena like the “The Great Resignation”, with the number of employees who say they may leave their job up to two-thirds on average. This has resulted in an extreme decrease in average tenure per job across industries—exponentially growing the burden of hiring and retention for companies across the spectrum. This begs the question of why companies can’t seem to hire sustainably, and what they can do to considerably raise the bar for the people that make their business possible. With data being generated at an escalating rate, businesses need to stop swimming upstream and embrace data within their own companies’ infrastructure, using it to promote better hiring. It was even shown that 95% of businesses cite the need to manage unstructured data as a problem for their business. Businesses that employ the many capabilities of data, especially that data available on its employees and the hiring process, can manifest a new precedent for the 2022 job market. In this blog, we are going to take a look at some of the biggest issues in hiring today and the positive impact that data can have in helping to fix them.
Current Disparities
Companies are now realizing that a three to five-year plan, something that was once the benchmark projection for the future of a company and the industry to which it belongs, is now irrelevant. Business is changing daily, and unless one has a crystal ball there is no possible way to have the foresight to see as far as three to five years. Success is most often driven by the people that make up a company, and something that has been especially overlooked in business is the value of human capabilities in the workplace. To date, businesses have gotten caught up on the hard technical skills, which is really only half of the whole picture. In fact, according to LinkedIn’s 2019 Global Talent Trends report, 89% of recruiters say when a hire doesn’t work out, it usually comes down to either a lack of or a mismatch in, the needed human capabilities.
Human capabilities—such as collaboration, critical thinking, perseverance, and communication—can help people succeed and thrive at work. These capabilities are often the real glue at companies, and businesses can attribute many things to their employees’ human capabilities, including but not limited to company culture, brand reputation, and overall employee satisfaction—all things that typically make the difference between whether an employee stays or goes. This shows the obvious need for companies to shift their mentality and start not only seeing, but investing in the value of human capabilities. Businesses who start tracking, recording, and actually integrating the value of these capabilities into the workplace will most certainly glean an edge in the hiring continuum. Thankfully, at the intersection of human capability data and company policy, fertile ground awaits that can give businesses the opportunity to truly capitalize on their employees’ unique capabilities.
Actionable Business Data
A data-driven enterprise is an organization that has integrated data analysis into the core of all its business processes, using the insights derived to drive continual improvement. With a track record of success, insight-driven businesses are growing at an average of 30% each year. It is high time for companies to start investing in employment data, and the hiring continuum that follows, so that they can make better business decisions based on past, present, and future results. Human capability data has a myriad of insights, and there are so many positive benefits that can be accrued by actually employing it. Whether that be in hiring new candidates or reinvesting in your already existing employees—as internal hiring was shown to have a 41% longer employee tenure—companies can more easily find the people that fit the bill within their organization. This naturally generates career longevity for both the company and the employee. Human capability data, which encompasses the full story of an employee’s competencies including both technical and behavioral faculties, is something we have proprietarily termed as “Actionable Business Data”. And this data has extreme potential when it comes to some of the most pressing talent challenges modern businesses face. This genre of data isn’t about good or bad, less or more, it is about information that is comparable to human skills that are directly measurable within your organization and comparable to what has wielded the most successful results in the past. This applies to both the employee and the employer and can help to drive accurate placement in roles.
“The Great Resignation is really a Great Re-evaluation. What people are resigning from is a culture of burnout and a broken definition of success,” says Author Arian Huffington. “In quitting their jobs people are affirming their longing for a different way of working and living.”
Actionable business data helps companies move away from the antiquated benchmarks for success, and instead procures insight on the very people that drive their business forward. With it, companies can not only move towards a better way of employing internally and externally, but can also help revolutionize the hiring market as a whole.
Tune into next week’s blog that will focus on how Almas Insight is helping businesses to not only find but utilize human capabilities data, helping companies to become frontrunners in modern and improved employment.
