Challenges in Attracting, Recruiting, and Retaining Talent: A Strategic HRM Perspective

 

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In fact, attracting, recruiting, and retaining talent have become an essential aspect of organizations in the light of the transforming job market of the modern era. Rapid technological changes have shifted employee perspectives and have given rise to new generation of employees who find these Human Resource Management practices unable to create a sustainable way of managing the workforce. Among the most pressing issues are the perceptions of Generation Z about traditional employment. Strategic Human Resource Management (SHRM) probably serves as a solution to most of these challenges by bringing strategies for recruitment, engagement, and retention in line with changing expectations from the workforce (Armstrong & Taylor, 2020). This is one of the foremost challenges of modern HRM-the employment of several generations that comprise the workforce today. It's also true for Sri Lanka.

Why Gen Z Struggles with Job Satisfaction

There is a generational difference in priorities between Gen-Zers (born between 1997 and 2012) and those that came before them. While Baby Boomers and Gen-Xers might have valued job security and Millennials considered work-life balance, Gen Z emphasizes purpose-driven work, fast career growth, flexibility, and mental well-being (Twenge, 2017). Their discontent with the traditional job roles is attributed by several factors:

• Lack of Purpose and Impact: Gen Z wants to work for organizations that share their values and contribute to their real positive impact in the world (Deloitte, 2023). A report holds that, unlike any other generation, it is common for a Gen Z employee to resign from a job (LinkedIn Talent Report,2023). This resignation is oftentimes directly linked to the fact that a worker feels little or no chances of their future career progress.
• Rigid Work Structures: As compared to previous generations, Gen Z likes working both in-office as well as hybrid or completely remotely, and most of them find rigid office hours suffocating at times (Gallup, 2022). These shifts in working culture after the pandemic seem to suggest that Gen Z is more oriented towards hybrid or fully remote jobs. A 2022 McKinsey report found that more than 70 percent of Gen Z workers would consider changing jobs for increased flexibility regarding their work duties.
• Slow Career Progression: Most employees are frustrated with corporate hierarchies that provide fewer growth opportunities (Twenge, 2017). Consequently, the majority of younger employees take jobs that contradict their personal values or impact their long-term career aspirations. A Deloitte survey conducted in 2021 found that 49 percent of Gen Z workers felt their jobs lacked purpose.
• Poor Work-Life Balance: They value mental wellness and happiness, even declining offers for burnout-allied jobs (Robinson, 2021). Overworking with restricted autonomy within hostile cultures has a profound impact on Gen Z satisfaction within the workplace itself. A study done by the American Psychological Association (2023) finds that almost 48% of Gen Z employees face stress within the workplace at toxic levels.

Challenges in Attracting and Recruiting Talent

Recruiting and hiring employees in the dynamic job market compel organizations to rethink conventional means of hiring. Some major obstacles are listed below.

 

1. Changing Skill Demands – The emergence of AI and automation has altered the skill requirements for many professions. Most candidates lack the digital skills or agility to transition into employment paths (World Economic Forum, 2022).
2. Employer Branding Issues – On the other hand, companies that are less endowed with positive employer branding have an uphill task attracting the young career-oriented job seeker (Collings et al., 2021). Glassdoor reviews that reflect negativity or a poor work culture demotivate a lot of applicants.
3. Competitive Job Market – It has become hard for traditional firms to offer similar competitive perks and workplace cultures that these startups and technology companies may provide, such as work-from-home options (LinkedIn Talent Report, 2023).
4. Diversity and Inclusion Expectations – Gen Z are especially keen on having diverse and inclusive work environments. Those organizations still maintaining old-school policies lose potential workers to their more progressive counterparts (SHRM, 2023). 

 

Sri Lankan industries face enormous talent problems. In the IT sector, firms like Virtusa and WSO2 have difficulties hiring experienced software engineers and AI experts because of the talent shortage in the local area and emigration to countries with better salaries and remote work options (ICTA, 2022; World Economic Forum, 2022). In the apparel industry, firms such as MAS Holdings and Brandix are experiencing high turnover rates since Gen Z prefers flexible or part-time jobs rather than fixed hours in factories (Gammanpila & Kodisinghe, 2020; Deloitte, 2023). Banks like Commercial Bank and HNB find attracting young graduates difficult as they prefer working in fintech start-ups like Hatch, which provide hybrid options and faster growth (Gallup, 2022; LinkedIn Talent Report, 2023).

 

Strategies for Employee Retention

The next biggest challenge after hiring new employees is retaining them. High turnover results in costly affairs and unproductive hours. Adequately implemented SHRM practices can directly improve retention levels. For organizations, attracting and keeping Gen Z workers include redefining jobs to provide meaningful work, customizing tasks to their strengths, and mentoring and career development planning (Collings et al., 2021). The emphasis provided on work-life balance supported by hybrid models (Gallup, 2022), along with mental health care and well-being programs, helps to prevent burnout (Robinson, 2021). Competitive pay would consist of fair salaries and performance-based incentives, with benefits like student loan repayment and mental health days (SHRM, 2023). Establishing an inclusive workplace culture through diversity, inclusion, and engagement initiatives ensures employees feel valued (SHRM, 2023; Deloitte, 2023). AI-powered recruitment platform supports faster and more efficient method of recruiting (World Economic Forum, 2022).

Conclusion

Millennials and Gen Z increasingly strive for work-life balance, career advancement, and meaningful work; thus, businesses that ignore these aspects face high attrition rates (Twenge, 2017). Microsoft, for instance, counters this trend through offering flexible work arrangements, upskilling, and career advancement to foster autonomy and competence (Deci & Ryan, 1985). The other extreme is industries like retail, where inflexibility breeds disengagement (Kramer & Schmalz, 2019). In order to engage their employees and reduce turnover, organizations must offer flexibility, growth opportunities, recognition, and inclusive culture.

 

References

• Armstrong, M., & Taylor, S. (2020). Armstrong’s Handbook of Human Resource Management Practice. Kogan Page.
• Collings, D. G., Mellahi, K., & Cascio, W. F. (2021). Global talent management and COVID-19: Challenges and strategic opportunities. Journal of Business Research, 136, 342-349.
• Deloitte. (2023). Gen Z and the future of work: Understanding the evolving expectations. Deloitte Insights.
• Gallup. (2022). State of the global workplace report. Gallup Research.
• LinkedIn Talent Report. (2023). Emerging trends in recruitment and retention. LinkedIn Insights.
• Robinson, O. C. (2021). Work-life balance and well-being in contemporary organizations. Journal of Occupational Health Psychology, 26(2), 105-117.
• SHRM. (2023). The state of diversity, equity, and inclusion in the workplace. Society for Human Resource Management.
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• Deci, E. L., & Ryan, R. M. (1985). Intrinsic motivation and self-determination in human behavior. Springer Science & Business Media.
• Kramer, L., & Schmalz, R. (2019). How to retain the best talent: A strategic approach to employee engagement. Harvard Business Review.
• Twenge, J. M. (2017). IGen: Why today's super-connected kids are growing up less rebellious, more tolerant, less happy—and completely unprepared for adulthood. Atria Books.
• Deloitte (2023). Gen Z and Millennials Survey 2023. Deloitte Insights.
• Gammanpila, D.D. & Kodisinghe, K.A.M.S. (2020). Employee Retention in Sri Lanka’s Apparel Sector. Sri Lanka Journal of Management Studies.
• ICTA (2022). Sri Lanka IT Workforce Survey. Information and Communication Technology Agency of Sri Lanka.
• LinkedIn Talent Report (2023). Future of Work in Asia. LinkedIn Insights.
• World Economic Forum (2022). The Future of Jobs Report.