We can’t escape it, it’s on our doorstep and in the building and we are all feeling the pinch somehow. Rising inflation, scarcity of talent, and global supply constraints are causing many organisations to struggle and find the right balance between attracting and retaining the right talent, and keeping their costs under control. We borrowed the term – The Triple Squeeze – a complex and challenging situation that managers, leaders, and executive team members are facing in the current market.
To face these challenges head-on, managers and leadership are required to have a sound understanding of the market dynamics and possess the ability to make quick, informed decisions. Further, it is vital the senior leadership are prepared for and actively participate in monitoring value chains, capital, and global movements across all industries. For example, say your organisation operates in the virtual assistant space, it doesn’t mean the cost of oil or the supply of semiconductors out of Taiwan will not impact your business. Be ready. Be prepared. Be vigilant.
The first question about the Triple Squeeze impacts is: “what do we do about remuneration?” As we have seen from recent surveys, remuneration is a critical factor for employees, and many organisations are already overpaying new hires to secure the talent they need. This can be an effective strategy, but it can also be a double-edged sword, leading to higher costs for the organisation and the risk of inflation spiraling out of control. Engaging in a salary benchmarking review can assist organsiations with managing remuneration targets and provide insights when reviewing organsiaitonal design approaches.
Organisations can also focus on employee engagement and retention. This means investing in employee training and development, creating a positive and supportive work environment, and offering flexible work arrangements. By doing so, organisations can help to reduce turnover, retain top talent, and improve the overall productivity and efficiency of their workforce.
In addition, organisations can also look to explore new markets and opportunities. For example, they can look to tap into the growing demand for skills in the healthcare and education sectors, where there is a growing need for talent. This can help to offset the impact of the Triple Squeeze and create new revenue streams for the organisation.
Don’t forget to explore technology and automation to help reduce costs and increase efficiency. By automating routine tasks and processes, leaders can free up valuable resources and reduce the need for high-cost, highly-skilled talent. Additionally, technology can help organisations to streamline their supply chains, reducing the impact of global supply constraints and helping to control inflation.
Want to talk more about how you can dance the triple squeeze tango? Reach out to the team at Red Wolf Group today.