In the Eastern Bank Foundation-sponsored book, Help Wanted: How to Find and Keep Talent in a Forever-Tight Labor Market, Eastern Bank Foundation Fellow Jerry Rubin explores how new approaches to attracting, hiring, and retaining talent can offer a competitive edge. Along with co-author Steven Dawson, they lay out actionable solutions for employers navigating a convergence of challenging labor trends: a permanently shrinking labor supply, an aging population, and an outflow of native-born workers coupled with recent immigration restrictions. Below is a summary of their thoughts, as provided to the Eastern Bank Foundation Team.

Key Takeaways

• Labor shortages are here to stay. With fewer native-born workers entering the workforce, more people choosing not to work, baby boomers retiring, and other factors, competition for workers is structural, not a temporary blip.
• An employee-focused strategy is now a competitive necessity, not just a competitive advantage.
• Recruit from “untapped talent” pools, including immigrants, individuals with disabilities, and workers with short employment histories.
• Redesign roles so workers want to stay and grow. Start with good pay and benefits, then build toward training, career advancement paths, and other options. Begin by asking employees what they need, start small, and build on what works over time.
• Don’t go it alone. Partner with specialized workforce development organizations, regional community colleges, and vocational-technical high schools, and embrace business coalitions and public investment support in adult education and training, among other areas, to build a steady talent pipeline.

What three words describe today’s talent market and the challenges employers are facing?

Shrinking, untapped, and unhappy (with their jobs).

Where are employers going wrong?

The business press and too many employers watch only the weather – how much hiring is going on, which fluctuates with business cycles and external events. What they don’t pay enough attention to is the climate, or the supply of labor, which is in a steady structural decline. In doing so, they fail to take steps to ensure a steady supply of talent.

Why should employers worry about a forever-tight labor market when hiring is down and AI can replace so many jobs and workers?

It’s clear that we are in for a very long period of low and declining labor supply. But it’s not clear that AI will replace as many jobs and workers as some may think. Employers would be smart to employ AI to help their employees be more productive, reduce or eliminate tedious and uninteresting work, and enable more interesting and productive work. And, they would be smart to share those productivity gains with their employees.

What is an “employee-focused competitive strategy,” and, just as importantly, what is it not?

It’s a strategy in which company leaders and managers consistently ask their employees what they need to improve their jobs, their productivity, and job satisfaction, and then do something about it. It’s not simply annual satisfaction surveys, minimal training, and few advancement opportunities. An employee-focused strategy is one in which employees are much more than a cost to be minimized, but an asset to invest in, support, engage, and advance. 

Photo Credit: Nathan Fontes-Fried

What is the cost of inaction if an employer keeps hiring and managing the way it does today?

Certainly high turnover, a high expense which will result from poor quality jobs. The book describes how a “forever tight labor market” means companies that aren’t building a talent pipeline will lose business and fall behind the moment hiring picks up. There is no slack in labor supply and there won’t be for some time.

How can employers redesign work to maximize the retention of their workforce?

The book proposes a job quality hierarchy with basic elements like wages, benefits, and gain sharing at the foundation; and elements like training, career ladders, work life supports, and even employee ownership, as you move up the hierarchy. Employers should start small, see what works, and build on success over time. And, be sure to ask employees what they think and need at every step.

How can employers better connect with “untapped talent”?

Untapped talent includes individuals who would like to work, would like to work more than they are working currently, or would like to work at a higher level. This is an enormous number of people, more than 10 times the number of unemployed, and includes English language learners, the disabled, and those with little work experience, among others. There are many community organizations who are deeply embedded in these communities. They know how to prepare and support them working with employers, and several are highlighted in the book.

Where do these efforts most often break down?

While many employers can and do successfully tap untapped talent on their own, there are many organizations out there with specialized skills and relationships that can support them. Finding and retaining talent, especially pockets of talent with extra support needs, often requires specialized skills and vendors, just as any specialized area requires specialized skills and vendors.

What do you think gets in the way of employers undertaking “employee-focused” strategies?

There are many barriers, including accounting rules, cultural norms among leadership, and overall inertia. It’s easier to do nothing and wait for the perfect talent to show up on your door than to build your own talent pipeline. Another factor is HR is too often seen as a transactional position or department – make sure everyone gets paid and that we don’t break any laws – rather than a strategic position or department that can ensure a steady supply of growing and developing talent.

What about a smaller employer with no HR department and no budget for consultants — where does that owner start on Monday morning?

Most employers are small employers, and often the HR department is the owner who is wearing many hats. Many of the examples cited in the book are smaller companies, and many of the strategies and tactics aren’t expensive or difficult to implement. In some ways, a smaller company has the advantage of being closer to employees, allowing management the opportunity to ask all the employees directly about their needs and ideas and put them into practice – starting small and growing successes.

What advice do you have for employers who feel challenged in this work?

Begin the regular practice of asking employees what they want and need and doing something about it. Identify a few relatively easy steps that will improve the quality of your jobs, that employees are enthusiastic about, and implement them. Find a great partner in your community to help build a talent pipeline, such as a community college, and begin building a strong working relationship.

What gives you hope for the future?

The book is shaped by knowing different employers and workforce development organizations and dozens, if not hundreds, of companies across the country that have implemented employee-focused strategies with outstanding workforce partners and are growing, thriving, and adapting to the difficult environment we face today.

Eastern Bank Foundation, the philanthropic arm of Eastern Bank, supports grassroots community solutions and collaborates with community-led organizations working to build economic inclusion, mobility, and social justice in areas that include promoting workforce development. To learn more about Help Wanted, contact [email protected].

The opinions expressed herein are those of the authors and do not necessarily reflect those of Eastern Bankshares, Inc., Eastern Bank, or any affiliated entities. Views and opinions expressed are current as of the date appearing on this material; all views and opinions herein are subject to change without notice. These views and opinions should not be construed as any specific recommendation. This material is for your private information and we are not soliciting any action based on it. The information in this content has been obtained from sources believed to be reliable but its accuracy is not guaranteed. There is neither representation nor warranty as to the accuracy of, nor liability for any decisions made based on such information.