Michael D. Brown is Senior Managing Partner at Global Recruiters of Buckhead, a top executive recruiting and leadership consulting firm.
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One of the persistent challenges faced by retail, dining and other service sectors is attracting, retaining and developing talent. From the front line to senior leaders and managers, service industries continue to struggle to regain their footing in the post-pandemic landscape.
The pandemic highlighted significant instability and underscored how unsustainable long-standing talent strategies (or lack thereof) had become. Workers faced long hours and low pay and felt undervalued by their organizations, causing some to leave their careers entirely.
Years on, service sector staffing has not recovered. Some organizations have advanced despite inflation, rising wages and changing consumer trends and behaviors. Those who demonstrated genuine empathy and caring for their employees have become stronger and more resilient, while those who clung to the status quo continue to struggle.
Two Keys To Better Retention
Investing in extant talent is far more cost-effective than managing high turnover. But this simply can’t happen without strategy, commitment and a significant shift from "the way we’ve always done it."
So what needs to change? For one, focusing on a single demographic (i.e., younger workers) is shortsighted and fails to reach a swath of talent that could boost profitability and increase diversity, along with all its inherent benefits. Each generation of workers has its own concerns around work, variably driven by economic or political uncertainty, a disconnect between work and life purpose and elevated concerns about job security.
Second, we must ditch the old break/fix approach and stop treating attraction and retention as separate entities. Treat retention as your secret weapon from the start and loyalty, stability and profitability follow. Recent data from meQ shows that the proper support from leadership can substantially mitigate pessimism.
There is no question; a change in attitude is essential if we’re going to weather this era, and a multigenerational talent strategy may be the key.
How Talent Shortfalls Affect Profitability
Talent shortfalls affect a business’s ability to deliver a consistent customer service experience, but they also impact profitability and brand reputation.
High turnover is costly. According to a CareerBuilder survey, 75% of employers said they have hired the wrong person, and of those for whom that bad hire affected their business, each bad hire cost them nearly $17,000 on average. The company-wide repercussions of high turnover can be even worse, resulting in poor morale, lost productivity and loss of reputation.
A broken frontline talent strategy affects every line in the organization, from the front itself to the board room, shareholders and everywhere in between. Not a single dollar is generated without the front line’s involvement, influence and impact, indicating a clear need for reinvention in this retention space.
Companies failing to get retention right will continue to suffer challenges impacting service delivery, product quality and customer service, leading to loss of reputation and market share. The financial impact can be significant and will continue until balance is achieved.
Traditional recruitment strategies often treat attraction and retention as separate entities. In my view, this is a recipe for disaster. Retention strategy needs to be seamlessly woven into your attraction and recruitment efforts. Why? Because the choices you make at the hiring stage have a profound impact on whether employees stay or go.
Think of it like building a house. A strong foundation (attraction and recruitment) is crucial, but without sturdy walls and a well-designed interior (retention strategy), the house won’t last, nor will people want to settle in it.
Generational Talent Concerns
Broadening the talent pool to include multiple generations is not a new concept. Doing so improves diversity, which increases organizational resilience and productivity.
When implementing a multigenerational recruiting strategy, we must understand the concerns of each group currently in the workforce; that is, Traditionalists, Baby Boomers, Gen-X, Millennials and Gen-Z. Painting with a broad brush, we might say:
• Gen-Z values positivity, diversity and equity. They prioritize their mental health and may be affected by political and societal instability more than others.
• Millennials want to know that their work has meaning and aligns with their values. Beyond that, fair pay and a feedback culture improve engagement and productivity.
• Gen-X appreciates flexibility and autonomy over their schedules. They are highly self-sufficient but want their contributions to be appreciated.
• Baby Boomers may be less likely to prefer remote work. Their development needs are also different, but many may be able to mentor others.
What all these groups have in common is that they want to feel that what they do has meaning.
Fixing The Frontline Talent Problem
Organizations must develop a competitive and attractive employee and leader value proposition that resonates with all five generations in the workforce.
A frontline recruiting proposition should be designed to:
• Attract: Identify the caliber of talent you want to employ and invest in marketing to that group. Present a strong employee brand and competitive value proposition that entices the candidates you want to attract and aligns with what’s important to a workforce with diverse needs, interests, aspirations and ways of contributing.
• Retain: Foster a positive and engaging work environment that encourages individuals to stay and develop their skills. Companies can support this through a good onboarding experience, as well as longer-term upskilling and mentorship offerings.
• Develop: Invest in training and development programs that equip employees with the necessary skills to excel and advance in their careers. When organizations demonstrate their commitment to workforce development, employees are more loyal, as they know their company cares about their future.
Final Thoughts
The talent shortage is a global concern, but there are many things companies can do to turn the tide. In developing attract/retain/develop programs, focus on diverse, cross-generational talent to encourage engagement while broadening the appeal of your products, services and overall brand, as I wrote about recently. While this may be challenging, it’s crucial for winning the talent war.
So invest in a holistic approach. By aligning your attraction, recruitment and retention strategies, you’ll build a workforce that’s not just talented, but engaged, loyal and ready to thrive.
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