How to hire and hold on to talent
The innovations of tomorrow will usher in the Fourth Industrial Revolution(opens in new window), fusing the digital, physical and biological worlds. In this changing workplace, where some jobs have not even been imagined yet, it is important for the competitiveness of European SMEs to attract and retain appropriately skilled people. Addressing its skills shortage, the EU has designated 2023 the European Year of Skills(opens in new window) to upskill and reskill Europeans on the road towards Europe’s twin digital and green transition. The EU has also been working towards welcoming international talent through Talent Partnerships(opens in new window).
The secrets to attracting talent
So, what are the magic ingredients when seeking to hire and retain the most suitable talent? The EU-funded Talent Attractiveness, A Competitive Edge for European SMEs (TALENT) project has identified best practices in talent attraction, retention and growth for local SMEs, teaming up with three European development and innovation institutions in Lyon, Berlin and Rotterdam. Together, they studied and improved on methodologies that can be easily replicated across the EU’s regions. The project concluded that SMEs need other agents to succeed in this mission, but can adapt their own approach, by, for instance, changing their own managerial principles and using greater resources to address expectations.
Work-life balance is key
“There is no silver bullet to this challenge,” explains Cédric Grignard, director of New Business & Innovation, Sustainable & Resilient Cities at Invest in Lyon(opens in new window) agency. The unanimously shared outcome is the necessity that all economic actors (including academia) are involved and drivers in this challenge. “SMEs alone will very rarely be able to attract or retain talent if the city does not provide an adequate work/life balance and quality of life standards – including a reasonable cost of living; if the universities and higher education schools do not integrate SMEs’ needs and expectations for ready-to-work students; if the Investment Promotion Agencies do not play their role of lobbying the authorities, connecting the actors, facilitating dialogue and showcasing what works... This collective intelligence and collaborative work is not surprising, but it is definitely a must in this context,” explains Grignard.
Best practices from three European cities
Aside from Lyon, whose Invest in Lyon agency spearheaded the project, Berlin Partner and Rotterdam Partners were chosen to participate due to the ‘excellent’ ongoing relationships. “Additionally, the idea was to gather city-level entities where challenges were addressed and shared, and with people who were willing to collaborate, believing we are stronger together,” notes Grignard. Each of the three Investment Promotion Agencies was at a “different stage of maturity when it comes to Access-to-Talent initiatives for SMEs, with differentiating regional assets: Berlin with an exceptional talent position in Germany; Rotterdam with an exceptional international position in the Netherlands; Lyon with an exceptional work/life balance position in France,” he adds. The peer-learning processes at the three investment promotion agencies spurred them to develop methodologies during the 15-month, EUR 50 000 project which ended in Spring 2022. In sum, as the saying goes ‘it takes a whole village’ to attract and retain skilled employees, with various stakeholders working to ensure international (and local) talent enjoys a good standard of living and a sense of community, among other parameters.