The talent cliff is a phenomenon where businesses lose employees at a rapid rate. It isn’t a new problem, but it regularly appears in times of crisis, such as the 2008 stock market crash, and of course, the 2020-2021 pandemic. Because of the present WFH lifestyle, people are reconsidering their options, keeping their eyes open for new and better career opportunities.
Meaning the talent cliff is a constant threat to business success, especially right now.
Many organizations are in a position to suffer losses of key people who fill critical roles aligned with the organization’s overall business strategy. Finding and filling these roles quickly is essential but not always possible, especially when it’s a job candidate’s market. That’s why it’s important to stay ahead of the game and focus on preventing employees from leaving, rather than scrambling to hire talent later.
Our Guest: Jennifer Thornton, Talent Strategy and Leadership Expert
The special guest on this week’s episode of #WorkTrends is Jennifer Thornton, a sought-after business strategist who has clocked over two decades as an HR professional. She takes an unconventional approach to building workforce development solutions for companies, and her impressive expertise in talent strategy and leadership helped drive the rapid growth of her consulting firm, 304 Coaching.
I asked Jennifer why some businesses wind up staring over the edge of the talent cliff, while others don’t. And the heart of the matter is: Businesses who don’t value employee satisfaction will likely suffer the most.
“When a business starts to take off, they start throwing all their resources into increasing their revenue, opening up new markets,” Jennifer explains. “But what they don’t say at the same time is: What do we need to do for our talent to ensure that they can keep up the pace with our growth?”
“After a company continues to grow, the leaders usually get super directive, and the good people don’t want to work for someone highly directive. So they leave. Then the people you’re left with are the, ‘Yes sir,’ ‘Yes ma’am’ kind of folks. And they’re not telling you the truth. And then all of a sudden the productivity–it just goes straight down–off the cliff!”
How Can Businesses Avoid the Dreaded Talent Cliff?
I asked Jennifer about what leaders can do to avoid the talent cliff, or at least curb more employee losses. She explained that leaders need to provide psychological safety. They need to give employees space to honestly express ideas, and leaders need to be prepared to respond in a supportive manner.
“Psychological safety allows people in the workplace to be honest, to be truthful, to fully embrace who they are without judgment, which creates productivity and innovation,” Jennifer says. “When you open up the conversation, people feel valued … They feel like it’s safe to bring ideas to you because you don’t just shut them down.”
“I would encourage your listeners to think: How do you think about opening up that conversation so there is psychological safety and so that the business can move forward with the truth?”
The talent cliff is a threat to all businesses. But if you prioritize team needs, it will help you to retain valuable employees and amplify overall business growth.
I hope you enjoy this episode of #WorkTrends. And I hope it communicates that the key to a successful business strategy is valuing the people who are helping you to achieve it. You can learn more about this topic by connecting with our guest, Jennifer Thornton, on LinkedIn.