July 21, 2021
Acquiring and Retaining Talent for Tomorrow
Understanding why human capital is critical for success in the steel industry
July 21, 2021
Understanding why human capital is critical for success in the steel industry
Finding the right people is important for any company today. The pace of technological developments; the fierce competition for high-quality, low-cost products; and the ever-increasing demands of the end consumer to drive the most successful companies to a new level of performance.
As a result, companies need to have a new breed of employees both at the helm and in the ranks: professionals who are ready to learn and pivot as well as workers who are engaged and dedicated to an organization’s overall mission. All aspects of human resources continue to evolve, from finding and training the best and the brightest to holding onto that talent for the long run.
"Employees will demand that companies provide them with the training and development to keep up."
According to the U.S. Bureau of Labor Statistics, the overall employment outlook in the steel industry is projected to grow 11% from 2018 to 2028, which is much faster than the average for all occupations. The projection is based on the fact that construction of major projects like high-rise buildings is expected to continue while the need to maintain and repair older infrastructure will increase.
Globally, the demand for steel is projected to grow through 2025. According to BusinessWire, developments such as the increasing rate of high-speed trains in countries like China, Japan and India have boosted construction of special rail roads. In fact, the global spending in the construction sector is expected to reach $14 trillion by 2025, further enhancing the demand of crude steel and the talent to support that production.
Although the old-fashioned ways of acquiring talent, including job posting, networking, and working with educational institutions, are still popular and effective, the age of technological and global connectivity introduce a wealth of other avenues of acquiring top-notch talent. Here are some possibilities for the steel industry:
Finding and filling a position with the steel industry can be a significant investment. According to the Society for Human Resource Management’s (SHRM’s) Human Capital Benchmarking Report, the average cost-per-hire in the United States is $4,129. Depending on your ability to retain top employees, this cost can quickly add up.
The good news is that, contrary to popular belief, employees are actually staying at their jobs longer than in past years. According to research from the U.S. Bureau of Labor Statistics, the average tenure for an employee in 2018 was 4.2 years. This is a marked increase from 1983 when the average employee tenure was around 3.5 years. Some of the top reasons that employees remain at the same company include:
The global steel industry is positioned for steady growth into future, which will fuel demand for top talent within a wide variety of companies. However, as digital disruption and technological developments continue to advance, companies must be able to pivot in how they are seeking, acquiring, and retaining the best and the brightest. Making these changes in how human capital is viewed and treated will help steel companies rise to the market challenges of tomorrow.