In The Race For Talent, Adopt A ‘People-First’ Mentality

Four critical areas to focus on

When it comes to the U.S. jobs scene, candidates are still in the driver’s seat. 

According to Bureau of Labor Statistics data, U.S. job openings at the end of the first quarter hit an all-time high. But so did the U.S. quit rate. Some 4.5 million workers left their jobs in March in search of better opportunities or roles that align more harmoniously with their aspirations. This is a sign that workers are optimistic about their prospects and their ability to land a position that is better suited to their needs. 

The implications for U.S. businesses couldn’t be clearer: organizations need to adopt a “people-first” mindset to secure an edge in this fierce competition for talent. In today’s environment, organizations must move quickly to capture new market opportunities and respond to new information. A gap in staffing — or a gap in your people’s skill sets — affects nearly every aspect of a business, from strategy and planning to production and marketing. Without the right talent, companies are unable to operate with the agility required in today’s business climate.

The impacts are already widespread. McKinsey reports that 87% of respondents in a recent global survey are either facing skills gaps now or expect gaps to develop within five years. And Korn Ferry says that by 2030, the U.S. economy could forego $1.748 trillion in revenue due to labor shortages. That’s roughly 6% of the entire U.S. economy. 

How can you gain a leg up in the critical race for talent? To begin, it’s useful to understand what potential employees are looking for in a new position. My organization – Project Management Institute (PMI) — recently conducted a survey of 1,000 U.S. office workers who had searched for a job within the prior six months. While salary — perhaps not surprisingly — topped the list of motivators, it was far from the only driving factor. Also high on the list were better benefits, greater job stability, and opportunities to learn new skills. 

Similarly, our survey also found that job seekers — especially millennials and Gen-Z employees who together make up more than half of the U.S. workforce — also want to work for companies that are committed to a larger purpose. They are drawn to companies that exhibit values like honesty, integrity, transparency, and diversity and inclusion. 

These findings provide a useful guide for companies looking to cultivate a more “people-first” mindset, with a focus on crafting your leadership style around this outlook.

Here are four critical areas to focus on.  

As noted, the opportunity to learn new skills is a key motivator for employees. Nearly half of the respondents in my organization’s survey are interested in leading a team (45%) or managing projects (44%), and for senior-level employees, upskilling opportunities are more important than a higher salary (33% vs. 28%). 

Many employers are tapping the power of reskilling and upskilling as a motivator. According to recent research, 40% of CEOs are putting more emphasis on people investments — up from 33% in 2020. And some companies, such as JPMorgan Chase, Amazon and PwC, have invested millions in helping their employees acquire the skills needed to thrive in a fast-paced global economy.

The benefits of reskilling and upskilling are many. According to LinkedIn’s 2018 Workplace Learning Report, 94% of employees said they would stay at a company longer if the company invested in their career. And employees who think their organizations provide opportunities for learning and growth are 2.9 times more likely to be engaged than workers without such opportunities. These numbers alone are enough reason for leadership to prioritize upskilling as a leadership imperative. 

For leaders, the key is to identify training and development opportunities that are attractive to employees and can be linked directly to business competitiveness. For example, project management was cited by our survey respondents as one of the skills they want to develop in a new role. And because projects are how work gets done and how change occurs in organizations, optimizing the effectiveness of projects can lead to improved business outcomes. Organizations, including PMI, are developing solutions that help leaders train their workforces on new ways of working, different approaches to solving problems, and creating new tools – all so they can work smarter, build their skill sets, and achieve more individually and collectively. 

It goes without saying that communication is critical to any successful business. But clear communication is more than a practical business tool — it’s also a sign of respect. Employees want to work for companies that demonstrate a commitment to open and transparent communication.   

That’s especially important when talking about the state of the business and the organization’s strategy for growth, and it’s doubly important in times of stress. Nearly half (46%) of CEOs in KPMG’s 2021 CEO Outlook said they have increased communication during the COVID-19 pandemic, and 49% increased their leaderships’ visibility with employees. In an age marked by ongoing uncertainty, clear and transparent communication should be at the top of the priority list for every organization’s leaders. For example, Mars took employee feedback and experiences into consideration when sharing their return-to-workplace and future of work plans, giving their people more choices and creating a consistent experience for their associates.

Communication, however, isn’t the only competency that rises to the top in a “people-first” organization. People-centric leaders also need to employ a full range of “power skills” — skills like empathy, collaborative leadership, and active listening. These important interpersonal skills have taken on greater importance in recent years as workers place more emphasis on finding balance in their home and work lives and connecting with colleagues on a human level — not just through the lens of their work.  

Empathy is a particularly important power skill. A majority (80%) of respondents in PMI’s survey of recent job seekers look for leaders who are empathetic toward their experiences inside and outside of work. And according to the 2021 Workplace Empathy Study, 84% of CEOs and 70% of employees believe empathy drives better business outcomes. The uncertainty over the past two years has been difficult for employers and employees alike. Our organization adopted a remote-first work environment, giving employees the flexibility to determine how best to structure their day to achieve their business objectives. This helps to build trust and proves we are willing to try something new if it stands to benefit our people, and thus, our business outcomes.

With more people working from home, the boundary between our work and home lives has become increasingly blurred. In many cases, that has resulted in heightened stress, worker burnout, and diminished mental health. 

To support their workers’ overall health, organizations need to set clear boundaries for their people to follow. In setting those boundaries, however, it’s important for leaders to understand peoples’ desired work preferences and adhere to the flexibility they’ve promised. Workplace flexibility, however, isn’t just about hybrid work arrangements; it’s about true work-life balance — allowing employees to create a workday that accommodates both the needs of the organization and employees’ personal lives. 

Employers that get these four imperatives right, stand to gain not only in the race for talent, but also in the quest for overall competitive advantage. The true benefits of a “people-first” environment aren’t just greater employee retention and engagement — they are stronger growth, enhanced profitability, and greater leadership and operating resilience.