The war for talent is intense. Large organizations often have the upper hand when recruiting, hiring, and retaining talent, but that’s all about to change.
We hosted Minh Hua, Stanley Black & Decker’s Chief Talent Officer, in the season 2 premiere of our HR at the Table webinar series. We talked about top factors impacting talent recruitment and retention in a chat titled “The War for Talent: David vs. Goliath.”
In his interview, Minh answered four key questions that shed light on the current state of the talent market to help small and mid-sized companies compete with industry leaders.
The last two years, and even the last six months, has had a dramatic effect on the market. Minh describes the recent way business is conducted as a “series of whiplashes.” For example, Gross Domestic Product (GDP) typically ranges between negative 2 percent and positive 4 percent. During the second quarter of 2020, GDP plummeted at negative 31 percent. Yet, three months later, GDP soared at a positive 33 percent. This has led to a surge in hiring and the fastest rate of wage growth in recent memory.
Interestingly, Minh theorized that the talent market is starting to cool off. Business leaders are learning to do more with less — a trend that will only increase the longer we remain in a pendulum of economic uncertainty. Minh recommended that organizations shift focus toward quality of talent, team productivity, and business continuity.
The most successful companies play to their strengths. A great example of a small company that plays to their own strengths is one that pays market pricing for talent but closes the deal with a personal touch.
Social bonding, the degree to which an individual is integrated into a company, is an area where small companies can consistently compete in and win. Large organizations are often limited due to multiple degrees of separation and bureaucracy. Small and mid-sized organizations, though, have many opportunities to connect with applicants and employees. When employees feel like they belong and the company is successful, there is a spark that’s hard to dwindle.
In the story of David vs. Goliath, David is able to take down a giant with a few small stones. When it comes to recruitment and retention for small organizations, Minh has a few stones lined up to take down the Goliaths as well.
Your strategy doesn’t have to be complex or encompass all of your financial and human resources. Start by asking yourself the following questions:
When asked how to leverage technology, Minh shared a secret. “There's a very weak correlation between hiring success and the sexiness of technology.” Technology is unquestionably important to communicate, but it should not become the end all be all in any talent acquisition strategy. Instead, energy should be placed on selecting top talent and persuading them to work for your organization.
For more insight from Minh Hua, watch the entirety of this HR at the Table webinar here! To be a part of our next discussion with an HR and TA professional, register for an upcoming HR at the Table webinar. Next month, we’ll host Chris Brenchley, the co-founder and CEO at Surehand, for a chat on how to reinvent your talent acquisition strategy to fit today’s talent landscape and competitive market.