Head of People at Vericast

Michael Stanush

Based on recent job data from theBureau of Labor Statistics, the labor market remains relatively tight despite recent action by the Federal Reserve to combat inflation. While there are many factors that cause tight labor markets, other observed factors in recent years have led to a transformation in what workers expect from their daily jobs – especially as time moves on beyond the onset of the COVID-19 pandemic. Namely, this revolves around new flexibilities as employees work toward a healthy and productive work/life balance. This, along with broad and occupation-specific shifts in the labor market, will create additional challenges for HR teams while they continue to champion other priorities such as DEI, corporate health, employee engagement, etc.

ForHR teams to keep up withlabor market trends and changes, it’s essential for teams to root their operations in substantive data analysis. For example, from a hiring standpoint, robust internal data allows us to dig in and identify the skills and environment specific to a given position. We can then take that data and use it to create the largest possible funnel to tap into the candidate market, intentionally seeking a variety of applicable skillsets and demographics to find strong contributors for the role.

Below are three ways HR teams can leverage people data to move the needle amidst macro-economic challenges:

Cultivate Rich Partnerships to Bridge Skills

It’s essential for businesses to continually audit the effectiveness and conversion rate of funded programs that focus on skill development. At Vericast, we work with the Department of Defense’s SkillBridge programto help veterans develop high-quality skills that level the playing field when searching for their next job post-service. Often a very determined group of strong employee prospects, military members in the program can bring unique and deep skillsets for notoriously tight labor markets such as manufacturing. Vericast has made over 100 hires this year through partnerships like this one.

"Leadership opportunities as well as internal training and development processes grounded in data can allow for fair promotions that help the business grow and help individual employees become more desirable candidates for career moves down the line."

By analyzing metrics and auditing the value of these partnerships, HR departments can continue to understand what partnerships and programs create value for their businesses.

Innovate to Attract and Reach New Prospective Employees

Bringing the right people into the business during a tight labor market can be challenging, especially as HR teams also prioritize taking care of their tenured employees. Conducting the right data analysis to understand what a specific workforce population needs and desires is the first step in reaching the right person for the right job (while also focusing on retention). For example, although flexibility remains king in 2023, HR teams also must acknowledge the potential of constructive in-person collaboration. There has always been and will continue to be, a need for both individual employee satisfaction and organizational productivity. Those two goals operate independently, but employers should seek to align them whenever possible. In other words, how can we keep flexibility and maintain a high level of productivity? Where should we look to find candidates that will thrive with the given characteristics of a specific role? Every role, region, and market will likely crave different perks, but ensuring that employees are represented, can participate effectively, and are properly informed remains uniform throughout roles.

Refine What Upward Growth Looks Like

As HR departments refine hiring, retention tactics, and partnership success, it’s also important for HR teams to understand what drives creativity as businesses evolve and navigate post-2020 hurdles. Leadership opportunities, as well as internal training and development processes grounded in data, can allow for fair promotions that help the business grow and help individual employees become more desirable candidates for career moves down the line. At Vericast, we think about learning and development as summiting a mountain – at each point on the climb, you're given different pieces of training to get further up the mountain. Wherever you start on the mountain – whether that’s at base camp or further up the climb – you are given new tools and training to continue your ascent and supplement your previously acquired skillset.

Overall, substantive data gives HR teams the confidence to partner, hire, retain, engage, and train in a complex environment. It allows employers to identify opportunities on the horizon regardless of their corporate stage or sector. Employee expectations are shifting, and trends in where and how people work will continue to evolve. Quality data is our constant to weather these changes. By thoroughly understanding what programs are producing results, how innovation is being employed to find the right person for the job in a tight labor market, and how to advance employee development initiatives, HR teams take their operations to the next level, allowing employees to be appreciated, creativity to thrive, and business to grow.