The attraction and retention of talent will be the great challenge for Spanish companies in 2023. In this context, The Adecco Group Institute, the Adecco Group’s study and dissemination center, in collaboration with the San Pablo Andalucía CEU Foundation, has presented the second report on the Function of Human Resources and Challenges in Talent Management, with which it aims to help reflection on those challenges that, in terms of peopleaffect both organizations and the function itself with a view to 2023.
To do this, they have surveyed more than 40,000 professionals of representative companies of the Spanish business fabric, between December 14, 2022 and January 15, 2023.
In the words of Javier Blasco, director of The Adecco Group Institute: “One of the concerns of the People departments is the growing shortage of talent. Gender equality is once again the main element of action in compliance with the SDGs, now that we celebrate Equality Day, but it should not engulf other objectives of diversity and inclusion, such as those related to age, different abilities, or culture, to give three examples. It does not seem that the relaxation of the immigration regulations will allow us to attract all the necessary talent beyond our borders. Nor does it seem that we have a problem of widespread resignation, at least similar to what happened in the USA, but it does seem that the rethinking of priorities and purposes, and the demands for flexibility and conciliation, are behind most of the reasons for rotation In our country”.
“The social purpose of organizations seems to be one of the keys to attracting and retaining talent. People are concerned about this variable to improve their emotional bonding, as well as transparency, loyalty, predictability and the leadership and management style of managers, within that sometimes confusing mix that we call emotional salary that should improve motivation and involvement of people. We will continue talking about how to manage salaries in times of inflation throughout 2023. It is obvious that if the regulations offer few options (salary in kind, pension plans) the people departments are going to have to make authentic bobbin lace to discover new niches of improvement of the employee experience and company brand”, Blasco highlights.
Obtaining human capital, the main objective
The first question posed to the heads of the human resources departments of the companies participating in the survey is what are the main challenges they face in 2023.
One more year, the most outstanding challenge is “attract new talent to ensure the growth of the organization in times of economic recovery” (76% of companies rate it between 7 and 10, with 10 being the highest score, and 44% between 9 and 10; +0 pp year-on-year). The second most noted challenge is “defining models of productivity and efficiency of human capital for a more sustainable organization”, with 71% rating it between 7 and 10 (-6 pp year-on-year), and 25% between 9 and 10 (- 6 pp year-on-year).
They follow him, in order of importance «look for compensation formulas (tax benefits, emotional compensation, etc.) that mitigate the impossibility of aligning wages with inflation” (68% of companies value it between 7 and 10), “advance in flexibility models (time and place of work, organization , agile environments, etc.)” with 68%, “training of people in soft skills” with 67%, “advancing in diversity and inclusion policies, with the aim of maximizing the use of talent, innovation and people’s commitment” with 64% and “managing people’s psycho-emotional health” with 63% (this aspect has grown 9 pp compared to last year).
It is noteworthy that the least valued options are “aligning salaries with inflation” with 62% evaluating it in the lower area of the scale, “managing the turnover of people” with 61%, “continuing to adapt the organization to the new requirements of the labor reform” with 60%, and the “training of people in digital skills” with 56% (this challenge has lost -12 pp year-on-year
Talent retention: turnover
One of the great trends of the past 2022 was the so-called great resignation, although in Spain they came to speak rather of the Great Rotation. The Adecco Group Institute has asked the heads of HR departments to identify the level of turnover of people in their organization (percentage of workers who leave their position over the total workforce) in the last year.
So, 42% of the companies consulted state that turnover is below 5%although there is a significant over-representation of the service sector in said rotation, and especially in the hospitality sector.
Most turnover occurs in the 25-35 age group, a segment that leads turnover with percentages between 5-10% of the workforce (32%).
Only 1% of the organizations report a turnover greater than 50%, although the turnover of the ages 25-45 continues to be high, it is the youngest (16-25) and those aged 45-55 who increase the level turnover up to 17%.