Where has all the talent gone?

Dr. Zara Whysall explains how to survive the most acute war for talent in 25 years.

If you’re feeling that the war for talent is tougher than ever, you’re not alone. In a recent conversation with James Taylor, CEO of recruitment and retention firm Macildowie, he shared: “In my 25 years in the recruitment industry, this is the most acute war for talent we’ve ever experienced.”

Contrary to headlines about ‘The Great Resignation’ from across the pond, there has been little turnover at senior levels in the UK. According to James, a key factor is that executives considering retirement or a role change before the pandemic chose to stay and guide their organisations through the crisis. They then reassessed their career aspirations, finding value in the flexibility of hybrid working. Additionally, many received substantial pay increases after successfully navigating the pandemic. As a result, the expected turnover at the top hasn’t occurred yet, although James predicts an easing in candidate flow in the coming months. 

With candidate shortages and high salary costs at play, making a wrong appointment decision is now more costly than ever. Therefore, how can HR teams ensure they make the right appointment decisions?

1. Make people decisions based on objective data and evidence

HR specialists will emphasise the importance of making people decisions based on objective data and evidence, rather than relying on simplistic measures or subjective opinions. We’ve all heard horror stories of leaders being appointed based on casual conversations with hiring managers or personal contacts. Instead of opinions, what’s crucial is concrete evidence of behavioural capabilities in essential areas for the job, ensuring confidence in your appointment decisions.

2. Clarify the key competencies required for the role moving forward

Have you assessed and revised your competency frameworks? The workplace landscape has undergone significant changes in the past couple of years, altering the requirements for effective leadership. Be sure to define the essential competencies needed for success in current and future roles. Explore more insights on contemporary leadership in our Future of Leadership eBook.

3. Use reliable and valid ways of assessing capability

A thorough assessment should incorporate diverse data sources like 360-degree feedback, psychometrics, and comprehensive psychological interviews. Additionally, simulations can provide valuable insights by challenging participants with tasks that push their current abilities, assessing their suitability for specific roles. Simulations enable evaluation of performance in areas where individuals may lack extensive experience but demonstrate potential for success. This approach mitigates the reliance on past performance, addressing biases that may disadvantage candidates without prior professional opportunities to showcase their skills. Overall, simulations contribute to a fairer evaluation process.

4. Ensure there’s a tailored onboarding and development plan

After every assessment, it’s essential that all participants receive personalised 1:1 feedback. Successful candidates can then use this feedback to create a development plan tailored to their new role. We provide detailed recommendations to both individuals and hiring managers, including definitive advice on appointments and strategies to address any identified development gaps. Leadership capability isn’t innate, and it’s an ongoing journey rather than a fixed state.

Whether it’s for internal promotions or external hires, the stakes of making a wrong decision are significant. Data-driven decision-making helps mitigate risks associated with appointments, while assessment insights inform targeted onboarding processes and personalised development plans. This approach accelerates the time it takes for individuals to achieve peak performance in their new roles.