what drives talent in the business administration sector.

Transformative trends are reshaping the landscape of the business administration sector. These trends underscore the sector's essential adaptation to technological advancements, especially in AI adoption and talent reskilling initiatives. Recognizing and harnessing these key drivers is vital for hiring managers, department heads, and talent acquisition leads. They are pivotal in cultivating a resilient workforce capable of steering organizational success through evolving economic conditions.

uncovering the top talent drivers

While some people change jobs to get a taste of a new role, sometimes it's the only way to get a pay rise! But how often does it happen in the business administration and operation roles? The research data trends show that compensation, work/life balance, career growth opportunities, and organizational stability are all key talent drivers that significantly influence all employees across all generations. While Gen X is most likely to change jobs, Millennials and Baby Boomers aren’t too far off.

In 2023, in the business administration sector and for all age demographics, about 20 percent of respondents changed jobs in the second half of 2023. The expectation in 2024 to change jobs for this same group is 24 percent.

• For Gen Z, about 37 percent switched jobs in 2023 and about 31 percent plan to in the first half of 2024, which is a surprising dip.
• About 23 percent of Millennials changed jobs in 2023, while 26 percent plan to move on to newer jobs in 2024.
• Baby Boomers exhibit a surprising jump in their employer change rate moving from 0 percent in 2023 to 6 percent in 2024. For all age sectors, a consistent top reason for leaving was: too low compensation due to the rising cost of living.

what does this intel tell us?

Low compensation, work/life balance, and career growth opportunities are key factors driving job changes across generations. Irresistible offers and organizational stability significantly influence decisions.

what are the talent drivers in the business administration sector?

Business administration professionals place a high value on career development and the opportunity to acquire new skills. According to the research, approximately 34% of respondents in 2024 feel they have sufficient opportunities to develop professionally in their current roles. The increase of 4% from 2023 highlights the importance of reskilling, with 35% of respondents in 2024 emphasizing the significance of roles that foster personal and professional growth. At 31 percent, Gen Z is most likely to change jobs. However, Millennials, Gen X, and Baby Boomers aren’t too far off. The research data indicates that fair pay and a healthy work environment are top priorities for all generations.

With all this data in mind, here’s what you should include in your 2024 talent attraction strategy.

1. providing flexibility

Supporting workers’ need for a healthy work-life balance can significantly improve employee satisfaction and retention. This is also reflected in our Workmonitor data, which shows that 58% of Canadian workers wouldn’t accept a job if they thought it would negatively impact their work-life balance. The research shows that if this driver is not satisfactorily met, work-life balance is the top reason given by respondents for switching roles.

2. leveraging AI adoption

While AI's current role in the workplace is limited, its future potential is widely acknowledged. Many believe AI will significantly impact jobs within five years, although there is some concern about job displacement. Employees generally favor employers who facilitate upskilling and reskilling through regular training and discussions. The majority views AI as a tool to enhance work quality rather than as a threat, reflecting optimism about its future role. Employers should invest in creating supportive environments that encourage continuous learning and adaptation to incorporate AI technologies effectively while ensuring that employees are equipped with the skills needed to thrive in a digitally transformed workplace.

3. understanding the impact of economic conditions to inform compensation strategies

The market is unpredictable and inflation, labor costs, and the rising cost of living have people carefully looking at how their employers are prepared to brace for the violent storm. Business administration respondents were asked how employees perceive their employer’s adaptation to challenging economic conditions. Almost 41.5 percent believe their employer adapts well and can shift gears efficiently. About 32 percent sense some difficulties but remain confident. Just over 13 percent are concerned about losing their jobs due to cutbacks. 13 percent are unsure about their employer's ability to handle economic challenges.

When asked: “In what way is your company financially supporting you to help cope with these rising costs?’’ About 29 percent said their salary raise covered part of the rising costs, 37 said they received nothing to assist with rising costs, and just about 16 percent said their salary increase covered the rising costs. Almost 9 percent reported receiving a one-time lump sum to assist with rising costs.

4. prioritizing equity

More and more, companies are investing significant efforts in providing equitable working conditions and opportunities. And these efforts to be inclusive and embrace differences don’t go unnoticed.

According to the research results, overall, and for all sectors, Canadian employers are doing fairly well on equity.

Some key elements:

• About 60 percent of Canadians do not identify as a minority. This highlights a diverse work environment where a substantial number still feel represented as the majority.
• Interestingly, minority individuals rate their employers higher across most equity statements compared to non-minorities. Particularly noteworthy is their (50%) significantly higher rating for equal pay for equal work when compared to non-minorities (44%).
• In the business administration sector, equity also resonates with respondents. If you break down the sector into female and then everyone else, here’s where it stands: about 47 percent feel their organization values their unique attributes, characteristics, skills, experience, and background. For women, that number drops to about 44.8 percent.
• When asked if senior managers are fair when it comes to hiring or career advancement, about 59 percent of the respondents agree - whereas 56 percent of the female respondents agree.
• In terms of whether senior managers are fair when it comes to reskilling and upskilling opportunities, about 53.2 percent of the respondents agree and 49.8 percent of the female respondents feel the same too.

What does this data indicate? While there has been progress in equity, both in perception and reality, it is clear that there is ongoing work to be done.

key takeaways: what attracts job seekers the most

Year after year, an attractive compensation package remains one of the most compelling talent drivers. Low compensation, exacerbated by the rising cost of living, has become the leading cause of employee turnover. In today's uncertain economic climate, employees expect adequate compensation to meet their basic needs without financial strain. Companies that prioritize competitive pay packages are successful in both retaining their current talent and attracting new top performers.

As the world's leading talent company, we want to be your partner on this journey to attract and retain top talent who will contribute to the growth of your organization. Randstad is here to help you navigate the ever-changing world of work. Get in touch so we can find you the best talent to meet your needs today and tomorrow.