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Labor, skills shortage biggest business disruptors
July 13, 2022
Labor and skill shortages are viewed by most employers, 71%, as the top potential disruptors to business the year — more than inflation, supply chain hiccups and geopolitical instability.
That's a top finding from a study conducted by research firm Institute for Corporate Productivity (i4cp) and Fortune Media.
"While we often think employees leave an organization because they have a bad boss or are trying to increase their salary, the truth is culture plays a much bigger role in that decision," Kevin Oakes, CEO of i4cp, said in a press release on the findings.
"There's no doubt the pandemic and changes to work structure have affected culture. The question companies face is 'Will we be passive to those changes, or proactive in shaping the culture we need for the future?' As some have said, the war for talent is over, and the talent won. The quicker organizations are to recognize how critical culture is to attracting and retaining talent, and ultimately to financial performance, the quicker they will be creating an unshakeable organization that is future-proof."
While the study found 83% of organizations are turning to compensation adjustments as their go-to strategy, it's the targeted application of various incentives that makes a greater impact. For example, high-performance organizations were more than twice as likely to add or enhance equity retention awards versus their lower-performing counterparts. Flexibility in work arrangements is also key; The Talent Imperative study found high-performance organizations are 1.5 times more likely to offer their employees considerable choice regarding where and when they work.
