Family businesses have an advantage in talent acquisition – News

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Family businesses have an advantage in talent acquisition – News

As family businesses seek to prioritize growth, they must remain focused on the levers that will drive their business forward, even in the face of economic uncertainty and global challenges. For these leaders, talent will play a key role in long-term success, and leaders must rely on the cultural values ​​and integrity inherent in family businesses to help them successfully attract and retain the talent they need. need to thrive in any market environment. This article covers four ways to turn trust into a competitive advantage.

The workplace landscape is completely different than it was a few years ago. The combination of a booming economy, a global pandemic and worker dissatisfaction with jobs has led to many layoffs. In addition, the record unemployment rate has allowed employees to criticize employers, as well as motive. Retaining and acquiring talent is a higher priority than ever for many companies, especially those focused on growth. As these challenges are likely to persist, companies need an employee-centric strategy built on trust and concrete actions to win the war for talent.

Effective talent management is the key to growth

In PwC’s February 2022 Pulse survey, 92% of private companies indicated that recruiting and retaining talent is critical to their growth. Retaining and acquiring talent is also a priority for the next generation of family business leaders. According to PwC’s NextGen US 2022 survey, 75% of NextGens view talent acquisition, management and retention as top priorities over the next two years following the unprecedented impact of Covid-19 and changing later in the labor market.

Advantages of family business

According to the 2022 Edelman Trust Barometer, family businesses are the most trustworthy businesses – and have been for nine years – with 67% of respondents saying they trust family businesses, compared to 58% private, 56% publicly listed, and 52% owned by the State. Family businesses earn this trust with a clearly defined purpose and strong values ​​that are the foundation of their organization, and stem from their family owners. These values ​​often include a commitment to having a positive impact on their employees and communities and to acting as a socially and environmentally responsible company. At a time when employees are looking for more meaningful work, being part of a family business gives them the opportunity to put their values ​​into action and makes the time and energy they devote to their work more rewarding.

Family businesses can use this inherent advantage to win the battle for talent and drive growth. To do this, they must prioritize building and strengthening trust and focus on what matters most to employees.

The link between faith and talent

Trust has become essential to attract and retain talent. If a company loses confidence, it is more likely to lose employees. But business leaders often overestimate the trust their employees place in them. According to a recent PwC survey, 84% of business leaders say employee trust is high, compared to 69% of employees. This gap can have adverse consequences, including lower employee retention rates and a negative impact on a company’s bottom line.

And the stakes are high. According to PwC’s US Business Trust Survey, 71% of employees said they would leave a company if they lost trust in their employer, and 22% of employees said they left due to trust issues. Employees prioritize accountability, transparency, clear communication, and admitting mistakes while building self-confidence.

Turn trust into a competitive advantage

Family businesses have historically had better retention rates than non-family businesses, but even their natural resistance to turnover will be tested by today’s competition for talent. Companies that see this challenging environment as a unique opportunity to attract talent will benefit. To deepen trust with current and potential employees, family businesses should:

1. Lead and communicate with clarity.

Be clear about what your business stands for; How do you support your people? how you champion diversity, equity and inclusion; and your ESG goals and progress, then spread the word. According to PwC’s 2021 survey of family businesses, only 23% say they have developed and communicated a strategy around their ESG objectives. There is activity, but companies are slow to communicate their overall strategy and progress. Use your existing channels – including your NextGen – to communicate with potential and existing employees

2. Break down silos and foster collaboration

Employees need to understand the impact on the whole company. Break down the silos that block the flow of information for employees as they seek to create a consistent experience. Welcome new ideas and encourage creativity and collaboration within your organization. When employees feel heard, it builds trust within your company. For example, a family business that has been in business for over a century engages 150 of its 400 employees in the long-term strategic planning process in order to have a more diverse range of ideas and an engaged group to execute the strategy.

3. Be ready to trust as you grow.

PwC’s US Trust in Business survey also found that 75% of business leaders focus heavily on employees to build trust. But when it comes to concrete actions, only 37% have implemented key trust-building actions such as creating crisis communication plans or forming a trust steering committee. Consider how to grow your trust practices with listening sessions or one-time surveys as your business grows.

4. Integrate ESG into your operations.

Look for opportunities to integrate ESG efforts that can positively impact your business and the outside world. Many employees want to work for organizations that are focused on creating a better world, and organizations that prioritize ESG can increase employee engagement. Family businesses are prioritizing ESG long before it becomes a talking point. It is important that organizations take a data-driven approach to these activities to calculate and communicate their impact. Start by reporting what you have already done, as past results reinforce current messages about future plans

Lean between values ​​and integrity

As family businesses seek to prioritize growth, they must remain focused on the levers that will drive their business forward, even in the face of economic uncertainty and global challenges. For these leaders, talent will play a key role in long-term success, and leaders must rely on the cultural values ​​and integrity inherent in family businesses to help them successfully attract and retain the talent they need. need to thrive in any market environment.

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