Introduction
The hiring boom of the last two years has created a massive demand for
talent. The amount of jobs that employers were trying to fill drastically
outnumbered the pool of the right candidates l, This has created a highly-
competitive market and established new table stakes for the cost of
attracting, acquiring and onboarding talent. While the gap has begun to
close, the dynamics of such a competitive market will have a lasting impact
on wages and benefits that orgs are offering would-be candidates.
Now, as a reactive economy is causing shrinking budgets in some sectors,
the number of layoffs and cutbacks might signal a shift in the talent
market. However, the bar has been set in many ways regarding wages
and benefits, and HR leaders are feeling it from both sides: 1. there is less
budget to bring in new people, but the workload isn't getting any smaller,
and 2. the workforce at-large has higher expectations of employers'
investment in their teams.
Here is where the L&D team can step into the critical role of upskilling
the existing workforce to improve retention and prepare the entire
company for future growth. Forward-thinking organizations have shifted
to building their employees' skillsets and fostering a culture of ongoing
professional growth, creating an ecosystem of talent for the business and
acknowledging workers' potential for advancement.
1
To thrive in this fast-changing world, leaders must
treat capability building as a strategic weapon.
Done right, capability-building programs not only
create competitive distance but also materially
enhance employee well-being"
KEVIN CARMODY, Senior Partner, McKinsey
3
"
70%
Two in three workers have
quit a job because of a lack
of career growth, but 90% of
those would have stayed if they
had seen opportunities ahead.
2
Training and development is (sometimes implicitly) a pillar in a
company's performance. Talent is tied to business outcomes and has
an irrefutable impact on financial goals. Accountability for building
capabilities has even spread across the C-suite. In a 2022 McKinsey
interview, CFOs discuss the impact of L&D on their role as
financial leaders:
About 70% of job candidates
prefer to be evaluated for future
potential, not just their current
skills and abilities.
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