Dive Brief:
- Talent acquisition is no longer a top priority for HR pros, research suggests. In 2021, about 40% of HR professionals surveyed by Lattice said talent acquisition was a priority over the next 12 months. Only 17% of Lattice respondents said as much in 2022.
- That ground appears to be lost to other areas of HR, like employee engagement, L&D and compensation.
- Given the findings, according to Lattice, retention is the hot issue for HR professionals.
Dive Insight:
This evolution may come as little surprise: In HR Dive’s 2022 Identity of HR report, hiring was listed as a top priority in the industry. It was also listed as one of HR’s biggest challenges. A number of factors have exacerbated the issue: The Great Resignation and the Great Reshuffle remained throughout the year, while the quiet quitting debate sprawled from summer to fall.
With an economic squeeze on the horizon and institutional brain drain in the rear view for many employers, it follows that HR is shifting its strategy to retention and all that’s needed to foster it.
“Moving the needle on retention and engagement is a tall order for most teams,” Lattice researchers said. They also noted that the highest-performing HR teams had a few traits in common.
One, these successful HR teams invested in the programs closest to their employees’ hearts. This is on-par with HR trends, as learning partnerships — especially ones that build up talent pipelines — continue to flourish. Time and again, ERGs also prove worthwhile as they support marginalized folks through political unrest, cultural turmoil and identity-based trauma.
Two, these high-performing HR leads more often linked pay to performance, and were transparent about their compensation strategy, Lattice said. The takeaway regarding financial priorities: From the trials of enticing talent with pay and benefits packages to mandated salary disclosure in job postings, money will likely be top of mind for HR departments well into 2023.
And finally, Lattice found that high-performing HR teams invested in learning and development programs, namely upskilling and career coaching, for their employees. The takeaway regarding L&D: Not only do workers, especially those of Generation Z, keep telling HR researchers that learning opportunities are their priority, but perhaps people officers can use this momentum to do some upskilling of their own.
A 2022 Heidricks & Struggles report suggested money smarts will be a highly coveted trait in HR managers. Business Talent Group reported a 100% increase in demand for benefits-planning professionals and a 215% increase in demand for compensation strategists this year.
