Forvis Mazars: The talent revolution: companies are no longer just competing for talent; they are competing to retain it

• In Romania, talent shortage in the market is the biggest recruitment challenge
• 77.77% of Romanian C-suites agree that an organisation’s reputation is paramount in attracting talented employees
• Reskilling and upskilling are crucial competitive advantages in the new talent economy

The new world of work, as we called it after 2020, has dramatically evolved. Employees are no longer satisfied with mere job security and a paycheck. They seek meaningful work, flexibility, and a supportive work environment. Now, companies must adapt or risk losing their most valuable asset – their people.

Recent findings from Mazars’ C-suite barometer: outlook 2024: Building global ambition, conducted before the new network, Forvis Mazars, was formed, shed light on the strategic priorities of business leaders for the next 3-5 years. The survey revealed that one of the biggest strategic priorities for Romanian C-suites is implementing a new or revised talent attraction/retention strategy (33%). This shows that leaders are aware that they need to change something in their approach, and in the new talent economy, developing and retaining skilled employees is not just a matter of competitive advantage, but a necessity for organisational resilience and growth.

Talent shortage on the market is the biggest recruitment challenge in Romania

Globally, nearly half of C-suite executives acknowledge the challenge of attracting talent, with 44% stating difficulties in hiring for their companies and 39% identifying this as their primary recruitment challenge overall. In Romania, leaders similarly cite talent shortages as the biggest recruitment challenge (44%), followed closely by difficulties in targeting and reaching qualified candidates (44.44%), as well as attracting the right candidates to apply (38.88%) and ensuring a positive candidate experience (38.88%).

In response to these challenges, both global and local C-suites are responding with a new or revised talent attraction/retention strategy in their top five strategic priorities. Over the next 12 months, 50% of Romanian leaders plan to significantly increase their investment of time, money, and other resources in sourcing new talent – 10% or more.

Locally, an organisation’s reputation or prestige is considered the most essential factor in attracting talented employees

An organisation’s reputation or prestige (77,77%) is considered the most essential factor in attracting talented employees, alongside generous salaries and benefits (72,22%) and opportunities for learning, training and development (61,11%). Culture continues to play a crucial role, encompassing a modern working environment, a strong sense of teamwork and camaraderie, and a focus on employee wellbeing and cultural alignment. These elements collectively contribute to creating an attractive workplace that appeals to skilled professionals seeking meaningful and rewarding career opportunities.

”At the moment, Romanian leaders are implementing several strategies to attract and retain talent, as indicated by recent survey results. Specifically, 66.66% of organisations are actively organising in-company events to foster team cohesion and engagement. Additionally, 55.55% are prioritising regular salary increases to ensure competitiveness in a fluctuating economic environment, and 44.44% are offering rest days to promote work-life balance.”, mentioned Cătălina Călinescu, Partner, Outsourcing – HR & Payroll, Forvis Mazars in Romania.

While these strategies address immediate employee needs and preferences, there is an increasing recognition of the need for broader initiatives. For instance, investing in reskilling and upskilling programmes can empower employees with new skills and capabilities, enhancing their long-term career prospects within the organisation.

Reskilling and upskilling are crucial competitive advantages in the new talent economy

Businesses will always need skilled workers, but the specific skills in demand constantly evolve due to market changes, technological advancements, and organisational needs. History shows how globalisation reshaped jobs, and AI is poised to transform them even further.

As we have witnessed until now, job roles are rapidly changing, and have done so for many years. Some will vanish, others will transform, and entirely new positions will emerge. This is why business leaders must take into account other effective talent development tools, and reskilling and upskilling have demonstrated their importance in adapting to these shifts.

Cătălina adds: ”Like our recent study also showed, many leaders believe that talented people leave companies because they are not offered generous salaries and benefits. While this may be true, I do not believe it is the only important factor. The truth is, most of the time, employees seek greater challenges in their careers; they don’t want to be stuck in a routine or perform repetitive tasks. They crave complex projects and assignments that will fulfill them and contribute to their professional growth.”

And upskilling achieves precisely that. This investment in professional growth not only enhances job satisfaction but also strengthens the organisation’s capacity for innovation and adaptation in a competitive market.

When it comes to reskilling, especially in the era of AI, businesses need to equip their people with new competencies. Ultimately, it ensures the survival of the fittest, where highly skilled employees are more likely to provide a competitive advantage.

Employee benefits are still important, but the perspectives across generations vary significantly

In the context of global changes in the labour market, developing a comprehensive compensation strategy becomes essential to meet the diverse needs of multiple generations of employees. Companies are encouraged to create fringe benefit programmes that foster a sense of belonging and engagement among employees, taking into account the distinct needs of different generations.

Generation Z, known for their higher salary expectations and focus on work-life balance, may be enticed by perks like on-demand pay or unlimited vacation days. Millennials, who are already established in their careers and often dealing with burnout, could benefit from bonuses that support parenting, such as childcare subsidies or customised onboarding after parental leave. Baby boomers, nearing retirement and valuing comfort and flexibility, would appreciate comprehensive healthcare coverage or digital literacy initiatives.

By blending financial compensation with personalised fringe benefits tailored to employees’ real needs, companies can enhance their reputation in the job market and maintain loyal, engaged employees.

Competition for talent is set to continue, and leaders must prioritise understanding their employees’ needs and preferences to ensure business success. Ultimately, people are the driving force behind every organisation.