The Brand New, Disrupted Labor Market And What To Do About It
Apr 10, 2021
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Discover how the global labor market has been transformed by remote work and automation. Learn why internal mobility and employee retention are crucial for business success. Explore strategies from top companies like Bank of America and Wegman’s that champion diverse and inclusive recruitment practices. Understand the shift towards a talent-driven environment and the importance of developing capabilities within organizations to thrive in today's competitive landscape.
The labor market is increasingly dynamic, with automation creating more jobs and driving demand for service sector roles like healthcare and technology.
Companies must prioritize internal talent development and continuous learning to adapt to the evolving job landscape and improve employee retention rates.
Deep dives
Transformation of the Labor Market
The labor market is undergoing a significant transformation, shifting from a traditional focus on labor to a more dynamic talent market. A major insight is that automation has led to job creation rather than job loss, with 26% more job openings compared to the previous year. Most jobs available today stem from the service sector, highlighting an increased demand for roles in transportation, healthcare, and technology. The current unemployment rate is expected to decline further, emphasizing the strong demand for a diverse workforce.
Job Mobility and Changing Roles
There is a noticeable trend towards increased job mobility, with many individuals changing professions during the pandemic. Research indicates that one in four people shifted their career paths, reflecting a move away from conventional employment models. Job roles are becoming more fluid, and companies must adapt to a landscape where candidates seek part-time or multi-company arrangements. This evolution necessitates a reevaluation of job descriptions, as the traditional requirements may no longer apply to the roles being created.
Strategic Talent Development and Retention
Companies must shift their focus from merely recruiting talent to developing existing employees to meet future demands. Internal talent development is often more cost-effective than hiring externally, with studies showing that it can be six times cheaper to nurture internal talent. An example from Bank of America illustrates how creating structured training and development programs can boost employee satisfaction and retention rates significantly. Fostering a culture of continuous learning and skill development is not only a retention strategy but also critical for organizational performance.
The global labor market has gone through a massive change. Remote work, automation, and a huge increase in job and career mobility has arrived, coupled with one of the fastest growing economies in decades. What are you going to do about it?
In this podcast I explain what’s going on and show how the new practices of internal mobility, gig and contract recruiting, capability development, and diverse and inclusive recruiting are mandates for business success ahead. And I show you how Bank of America, Wegman’s, Ashley Furniture, and other exciting companies are way ahead of these issues.
Read more on this topic in my latest article, which includes graphics describing these changes.
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