Major Challenges Facing our Organisations in 2023

In this must-read edition, Leaders and Managers need to critically review and respond to the latest information and insights about three of the most significant major challenges facing our organisations in a post-COVID world:

• Challenge #1 – Attracting sufficient talented people
• Challenge #2 – Retaining sufficient talented people
• Challenge #3 – Enabling sufficient training and development

Biggest Challenges Facing You and Your Organisation

Q. In the post-COVID organisational world we now operate in, what are the most pressing or concerning issues you and your organisation are facing?

Challenge #1 – Attracting sufficient talented people

The latest job seeking activity statistics from the L.E.A.D. Survey highlight the turbulence in the employment market and amplify the challenges facing our organisations and their leaders with regard to retaining talent:

The lengthy and very challenging COVID period of the past few years provided a watershed moment for employees the world over – a chance to review the fundamentals of their lives including their working arrangements.

The so-called “Great Resignation” (where swathes of employees changed work/career directions) was the product of this review. Organisations coming out of COVID were suddenly struggling to attract sufficient talent to get their organisations back up and operating. The hangover continues in many industries creating an ongoing operational challenge.

Leaders and Managers hoping to attract sufficient talented people to meet the ever-changing organisational landscape must be prepared to flex and adapt – or risk not having the people needed to grow, let alone sustain their organisations. This includes being willing to invest in developing leaders at all levels to attract people with the skills and competencies required of today’s and, perhaps more importantly, tomorrow’s leaders.

Challenge #2 – Retaining sufficient talented people

The latest job seeking activity statistics from the L.E.A.D. Survey highlight the turbulence in the employment market and amplify the challenges facing our organisations and their leaders with regard to retaining talent:

Job Seeking Activity

Q. In the last six months, have you personally… for a job in another organisation?

With record employment (in Australia particularly), it remains a candidate’s or employee’s market in most industry sectors, with:

• Over half of Employees considering looking for a job elsewhere
• More than four in ten actively looking in the past six months; and
• A third having applied for a job elsewhere in the past six months.

It’s no surprise then that retaining sufficient talented people is a major challenge for Leaders and Managers. A challenge that again requires flexible, creative and engaging responses to hold on to the people they have. This includes creating working environments and conditions that engage, inspire and connect people. Environments and conditions that lead them to want to stay, rather than look elsewhere for development and growth.

There may also be a strong link between these levels of job seeking activity and this edition’s “Most Common Mistakes Made by Managers” – the mistake of Not Listening. A lack of listening will typically drive a level of disconnection, misunderstanding or even under-appreciation that turns an employee away rather than engaging them. Please consider the old saying – “People go where they’re wanted, but only stay where they’re appreciated.” See the later article in this edition for some tips to hone your listening skills and thereby enhance your connections with your talented people. Let them know you appreciate their input and feedback, not just to retain them, but also to develop more productive relationships

Challenge #3 – Enabling sufficient training and development

The importance of investing in training and development has never been more prominent than in a post-COVID world. One in which we know many of our people are making fundamental revisions to all aspects of their lives. The opportunities we create for individuals to grow and develop with the organisation may be the single biggest reason for them choosing to stay, rather than go elsewhere.

Consider the following graph which compares the percentage of people preferring to advance and develop with their current organisation to the percentage who believe this is more likely to be achieved with their current organisation:

Prefer to advance with current employer VS More likely to advance with current employer

Q1. Would you prefer to see your career advancement and development occur with your current employer or by moving to a different employer?

Q2. Are you more likely to achieve advancement by staying with your current employer or moving to a different employer?

The gaps are obvious and should be more than a little disturbing:

• 75% of Employees would prefer to see their career advancement and development occur with their current employer yet only 54% believe advancement and development is more likely with their current organisation – a 21 percentage point gap.
• 94% of Managers would prefer to see their career advancement and development occur with their current employer yet only 56% believe advancement and development is more likely with their current organisation – a 38 percentage point gap.
• 84% of Leaders would prefer to see their career advancement and development occur with their current employer yet only 65% believe advancement and development is more likely with their current organisation – a 19 percentage point gap.

The onus is clearly on the leaders of our organisations to create environments and conditions that not only attract and retain the right talent, but which also nurture and develop that talent to its potential. Investing in sufficient and appropriate training and development opportunities is essential. But so too is nurturing the desire and intention evident at all levels to develop with their current organisation to ensure sufficient talent to sustain and grow the organisation.

So, what does this mean for our organisational leaders and managers?

The challenge remains for our organisational leaders and managers to attract, retain and sustain/develop the workforce needed to keep our organisations operating efficiently and effectively.

In attracting sufficient talented people, Leaders must:

• Be prepared to flex and adapt recruitment strategies – or risk not having the people needed to sustain, let alone grow their organisations.
• Be willing to offer and invest in leadership development at all levels.
• Develop the skills and competencies required of today’s and tomorrow’s leaders.

In retaining sufficient talented people, Leaders must:

• Work hard to create the right conditions and environment for performance.
• Be prepared to flex and adapt to new work models/arrangements to put work in the right perspective.
• Ensure personal and professional development opportunities are available to employees at all levels.
• Develop more effective listening habits to truly tune into people’s needs and desires and be able to respond appropriately to them.

In training and developing sufficient talented people, Leaders must:

• Invest the time to listen and truly understand individual motivations and development needs to maximise performance.
• Create appropriate opportunities for growth and development for each individual.
• Strive to develop and sustain quality relationships and highly effective communication through better listening and connection.
• The next Leading Edge monthly update will explore the conditions and environments needed to meet these challenges head-on and respond appropriately and effectively as leaders.