Ahu Yildirmaz, Head of ADP Research Institute, ADP, explored the ever-changing workplace during her presentation to Argyle’s CHRO membership at the 2016 Human Capital Leadership Forum: Spring Event in New York on May 18. In her presentation, “Evolution of Work,” Yildirmaz examined several key employment trends and how these trends may impact human resources professionals going forward.
According to Yildirmaz, U.S. workers are earning more money on average than others. In addition, U.S. workers who switch jobs generally see a higher average salary at their new jobs.
So what does this mean for HR professionals?
Ultimately, HR professionals will need to compete to attract and retain talent. These professionals will be required to pay a premium if they hope to find and retain top talent consistently.
“Labor markets are tightening,” Yildirmaz said. “It’s not all about bringing new talent to the company. You also need to keep the talent you have.”
There is an ongoing churn of talent from one company to the next in many industries. However, HR professionals who deliver educational and career growth opportunities could boost the level of talent within their respective organizations.
In addition, a “talent war is happening,” Yildirmaz noted. This competition for top talent stretches across all industries and is unlikely to slow down any time soon, too.
“Labor markets are getting even hotter and hotter, and they’re getting even tougher.”
Millennials also are impacting the global marketplace. Younger employees typically demand lower salaries than their more experienced counterparts and possess the skills and know-how needed to help businesses drive growth.
Today’s businesses face difficult choices when it comes to finding and retaining top talent. They must be able to manage financial burdens as well as discover innovative ways to recruit and retain skilled workers consistently.
For companies, they can choose between Millennials who may be cheaper to hire but lack comprehensive experience. Or, they can pay a higher premium to employ experienced workers.
Making the right choice is rarely simple for companies of all sizes. And as the demand for skilled workers continues to increase, businesses must find ways to ensure they are able to maximize the value of their employee recruitment and retention efforts.
“Labor markets are getting even hotter and hotter, and they’re getting even tougher,” Yildirmaz said.
Typically, employees who possess between three to five years of industry experience need to be watched closely, Yildirmaz pointed out.
These workers commonly see the highest compensation increase because they are still young but possess industry experience. As such, these employees usually remain in high demand in industries across the globe.
“It’s not all about bringing new talent to the company. You also need to keep the talent you have.”
It is essential for HR professionals to recognize both the employer and employee perspectives as they launch worker recruitment and retention campaigns as well.
Furthermore, there are five human-centric needs that HR professionals must consider as they search for top talent:
- Freedom — Today’s employees demand control and want to be able to work where, when and however they choose.
- Knowledge — Workers want immediate access to a wide range of resources and tools they can use to further their career goals.
- Self Management — Technology is transforming the way businesses operate. As a result, employees want the ability to use technology to make decisions on their own to drive business growth.
- Stability — Employees are concerned about job security over tenure and constantly work to build long-lasting relationships that may help them stabilize their careers.
- Meaning — Employees want to work in an environment where their contributions are valued and they are able to drive meaningful changes day after day.
“Businesses must embrace these five human-centric needs to attract, engage and retain talent,” Yildirmaz said.
Today’s workforce is diverse, and generational differences exist that are driving many changes among HR professionals worldwide.
Going forward, a flexible approach remains paramount for HR professionals.
The workforce will continue to evolve, particularly as new technologies become available that transform the workplace. Meanwhile, HR professionals who remain open to new ideas can help driving meaningful partnerships with employees that may help a business retain workers for an extended period of time.
HR professionals also must continue to focus on meeting the needs of its current employees.
Retaining talented workers is becoming exceedingly difficult, but workers may feel loyalty to an organization that rewards them for their efforts consistently. How a company builds and fosters career growth with employees could dictate its short- and long-term success, as employees who have the opportunity to contribute and growth with an organization may become more likely to stay with this business.
Lastly, HR professionals should embrace change and reach out to employees for feedback to drive ongoing improvements. By doing so, HR professionals may be able to help their respective organizations gain a long-lasting competitive advantage in a fierce job market.
Dr. Ahu Yildirmaz leads the ADP Research Institute, a specialized group within ADP that provides insights to leaders in both the private and public sectors on current and emerging issues in human capital management, employment trends, and workforce strategy. The Institute leverages ADP’s deep expertise across the entire spectrum of human capital management, as well as insights gained from ADP’s approximately 600,000 clients and its 20M+ employee sample, to conduct research that illuminates the crucial trends shaping today’s working environments.
Additionally, Dr. Yildirmaz is responsible for managing the world-renowned ADP National Employment Report, a monthly measure of U.S. employment derived from an anonymous subset of roughly 350,000 U.S. business clients. She also manages The ADP Regional Employment Report which measures monthly changes in regional non-farm private employment on a seasonally adjusted basis, and the ADP National Franchise Report which measures monthly changes in franchise employment and is derived from ADP’s actual transactional payroll data.
Throughout her career, Dr. Yildirmaz has approached her research with a global mindset, having lived and worked in Central Asia and Europe. Prior to joining ADP in 2011, Dr. Yildirmaz held a number of roles at Johnson and Johnson and AT&T in the areas of strategy, corporate finance and market research. She also lectured and taught several economics and finance classes within the Economics Department at New York University (NYU) and the City University of New York (CUNY).
Dr. Yildirmaz earned a doctorate degree in International Economics from the Graduate Center of the City University of New York and a bachelor’s degree in economics from Bosphorus University in Istanbul, Turkey.