The Great Renegotiation: Leveraging Talent Pools in a Tight Market

The labor market during the coronavirus pandemic recovery has coming roaring back, making an already-tight labor market even more tricky to navigate. This has led to a situation that many economists call the “Great Resignation,” in which employees are demanding more money and more flexibility — or jumping ship.

While inflation is surging and economists are worrying about a recession, you wouldn’t know it from the job market. We are still finding it challenging to find qualified workers and keep them satisfied.

This market demands a lot of flexibility and creativity from employers. A new report from McKinsey sheds some light on an innovative approach these changes by recognizing that different types of employees have different motivators. And understanding that motivation just might be an important component of staying ahead of the “Great Resignation” and attracting and retaining top talent.

Meet the five talent types

McKinsey begins with the type of employee that all of us are looking for: The Traditionalist. The Traditionalist is the type of employee that employers have always prized, and for good reason. This employee outperforms their peers and brings a sense of loyalty, purpose and teamwork to an organization. Per McKinsey, these are also the individuals who have thus far avoided succumbing to the siren call of the “great resignation.”

These employees are typically found via traditional recruitment strategies, but the problem is that the workforce is increasingly diverse and employers need to look beyond this stalwart type in order to keep the operation humming.

So what are some other “types” and what motivates them? McKinsey identifies the following:

• The Do-It-Yourselfers: this is a group that we see exploding with the new digital economy. These are folks who might take advantage of the “gig” economy or freelancing. They are also a group that puts a high premium on flexibility.
• The Caregivers: these are people who have either parents or dependent children at home and prize flexibility for a different reason than Do-It-Yourselfers.
• The Idealists: this group comprises some of the youngest workers, most of them part-timers. These workers prize flexibility but their reason for doing so is different from the Caregivers: they are unencumbered by kids and want their work to align with their values and connect them to a higher sense of purpose.
• The Relaxers: this group is comprised of people who may have been retired or otherwise out of the workforce who could be enticed to return to work under the right circumstances. As inflation surges, we see new opportunities to tempt retired workers back into the workforce as their nest eggs dwindle.

Adapt Your Recruitment Strategy to the Talent Type

• Do-It-Yourselfers: show them that you can offer more in terms of resources, access and advancement, that they can offer themselves. The operative word here is “flexibility” as you might have guessed.
• Caregivers: These employees can be attracted by flexible schedules, work from home opportunities and generous parental leave.
• Idealists: Invest time in sustainability measures and involve these workers in developing such a program. It’s also a good idea to focus on career development and on-the-job training programs for this cohort.
• Relaxers: Money is a strong motivator for Relaxers, but so is flexibility. The upside of Relaxers is that they are seasoned workers, so consider offering them both to keep them engaged.

More tips

You may be considering making more of your positions fully remote. It’s a big decision that involves a number of key parameters. Read our guide to making a position or positions fully remote.

Contact us for more recruiting help.