Tackling an unpredictable labour market

Alumni_Interim management_unpredictable labour market

Alumni consultants Åsa Lögdberg and Anna Pihl Hedsund present the current changes and challenges that they are witnessing in the labour market and discuss how organisations can best respond in order to weather the storm.

Accelerated change

“Working on the frontlines of executive recruitment, we’ve witnessed first-hand the impacts of digitisation and globalisation on ways of working in the last few years. Covid-19 has taken those shifts and doubled-down on the speed of change. People are so much more likely to change jobs and have a shorter job tenure than ever before” states Åsa, Head of Alumni Interim in the Nordics.

“Personal fulfilment and an ability to develop oneself within roles is certainly higher on the agenda than ever before.”

“Absolutely,” agrees Anna who is also a senior consultant and regional Director for Alumni Interim in Southern Sweden. “Across our entire network and mainly then in our permanent business, we have really noticed serious questions raised around the stability and quality of their jobs, and their ability to influence shaping outcomes for both current and future roles. Personal fulfilment and an ability to develop oneself within roles is certainly higher on the agenda than ever before.”

Technology combined with a rapid shift to remote working has created a new style of platform working that has not only made it possible for people to rethink their life priorities but also presented them with increased opportunities and new business-models that allow them to do so.

Spotlight succession plans

“Definitely, the range of choice for executives and the increased opportunities that might previously have been considered impossible due to geographical constraints poses a growing challenge to organisations.” Åsa points out, “We are seeing businesses seemingly blindsided by the resignations of key experts who have exercised their personal need for a larger degree of flexibility, or a change of role.”

“In my experience, succession planning has always been a challenge for many organisations.” remarks Anna, “Today’s market just serves as a stark reminder for company leaders to prioritise a plan that ensures continuity. Today perhaps more than before we also see this effect on C-Suite, where in the past succession plans have been deemed more established, It’s important to have plans for development and nurturing C-Suite as well. “I agree,” says Åsa, “today’s competitive business landscape means that you want to do all you can to secure business intelligence and it’s really important that businesses now think much more widely and creatively about how they mitigate against losing valuable human capital.”

“I’m not sure that we are seeing a way to completely proof against this new unpredictability in the labour market at the moment.” states Anna, “but I do see that many of the clients we partner with are focusing more on using continuous personal growth as an attractor, and really investing in leadership development in order not only to create a stronger bond with their leadership but also to demonstrate a level of commitment that they hope will be reciprocated. Improving and maintaining high levels of employee engagement has definitely been spotlighted by businesses.”

Dealing with the unexpected

“The attraction phase at C-suite level is longer and that’s where in my opinion organisations can really benefit from interim solutions to bridge the gap.”

“Even when you invest in your people, and develop loyalty and mutual cultural bonds, there will always be occasions when crucial talent decides they want to leave. It is inevitable. Leaders take early retirement, want part-time roles, or even complete career shifts - change can come from anywhere.” states Åsa. “and finding someone to fill their role takes a not insignificant time, particularly at C-Suite level. The attraction phase is longer and that’s where in my opinion organisations can really benefit from interim solutions to bridge the gap. Using an interim solution means that the business can really explore the candidate market without urgency, find exactly the right hire and avoid the costs associated with a poor match.”

Anna adds, “Interim consultants hit the ground running, have a wealth of experience and aren’t hampered by the internal politics. They are definitely a way to buy some time if there is no obvious chain of succession. Just as the number of opportunities for candidates has expanded with hybrid working a possibility, so has the reach of potential networks that might hold your particular unicorn. Exploring the potential out there is not a quick task.”

“I think the other major advantage of interim leadership is that they can be tasked with the clearing up and restructuring of teams, handle hangover issues and complex problems that may be proving difficult.” points out Åsa, “The permanent role will be much more attractive to leadership talent if it they can start from day one focussed on developing and growing the business rather than having to be sullied by office politics and thorny problems from day one. Let an experienced interim consultant pave the way.”

“The permanent role will be much more attractive to leadership talent if it they can start from day one focussed on developing and growing the business rather than having to be sullied by office politics and thorny problems from day one. Let an experienced interim consultant pave the way.”

“Perhaps the future of work will provide alternative solutions, but I tend to agree, interim solutions can be one of the best approaches in the war for fickle leadership talent. That and investing solidly in developing your leaders of today and tomorrow and making solid succession plans to avoid being put in the position” concludes Anna.

About Alumni

Alumni has more than 30 years’ experience sourcing and developing leadership that makes a difference to the businesses they work in. Our extensive networks contain diverse, deeply talented and highly experienced leadership candidates seeking their next challenge. Many will be seeking a permanent position, but we also work with remarkably brilliant interim leaders, who can parachute in and save the day. If we can help you with any area of leadership acquisition or development or to see if we have the right person to deliver a shorter-term solution to your organisation’s current issues, please do reach out.