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Current Conditions

unemploymentrate
4.2%

U.S.
unemployment
rate

Current Trends:

  • Job seekers have gained the upper hand in hiring
  • Quit rates have reached new highs
  • Startup Surge: The number of new business applications is steadily on the rise, surpassing 1M new ventures since Q3 2020
  • Uncertainty around vaccine and testing mandates are keeping employers on their toes

Trend No. 1:

The Great Resignation

resignation

When the dust settled after 2020’s mass layoffs, “The Great Resignation” began with workers voluntarily departing their jobs in search of work-life balance, better benefits, higher pay, and more fulfilling opportunities.

  • 1 in 4 workers quit their job in 2021
  • Women are leading in resignations
  • Mid-level managers are most likely to quit
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2021 saw record quit rates – above 3 million per month. A stabilizing economy and shift in worker expectations suggest resignations will trend comparably high heading into 2022. To keep employees happy long term, strategically implement the employee retention initiatives that work best for your business.

Trend No. 2:

Companies Formalize
Hybrid Work Models

trend2

What was intended to be a short-term solution for stay-at-home orders and social distancing guidance is here to stay. More employers are offering a flexible or hybrid approach to work due to employee demand.

Employees saw first hand the benefits of remote work, including more time for personal matters.

  • Forgoing a daily commute saves workers an estimated 228 hours, or 9.5 days, of free time a year compared to office employees.
  • Since the onset of the COVID-19 pandemic, there has been a 135% rise in remote job offerings.
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Not all jobs or businesses are conducive to working from home. Critically examine your business to determine how you can provide flexibility to your employees by offering more vacation time or additional breaks throughout the workday.

Trend No. 3:

Recruitment Ghosting

An abrupt stop to communication, also known as ghosting, is on the rise in recruitment, and both candidates and hiring managers are to blame. Unlike in-person interviews of the past, phone calls and Zoom meetings tend to be impersonal, making ghosting easier than ever before.

ghosting

Reasons Why Candidates Ghost:

  • 20% say they’ve received a better offer in the meantime
  • 13% were dissatisfied with the salary offered
  • 25% decided the job wasn’t right for them

Ghosting Goes Both Ways

46%
of candidates didn't show up for a scheduled interview (Indeed).
77%
of job seekers say they've been ghosted by a prospective employer since the onset of the pandemic.
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Reduce the risk of being ghosted by a candidate by being transparent about the hiring timeline and maintaining frequent communication. Avoid ghosting, as it creates a terrible candidate experience and can tarnish your company’s reputation.

Trend No. 4:

Reskilling, Upskilling, and
Internal Mobility

Companies recruiting for hard-to-fill positions are turning the searchlight inward and opting to upskill and reskill established employees.

trend4

Upskill vs. Reskill

Upskill is the process of teaching workers advanced skills that are aligned with their current career path to close a skills gap. Reskilling entails teaching workers adjacent skills to perform a different, often lateral job.

Employers are catching on to the benefits of internal mobility, such as increased retention, engagement, and reduced cost and time spent on hiring.

  • It’s 6x more costly to hire externally than internally
  • 87% of leaders believe reskilling their employees will help drive retention
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Organizations that promote internally and provide training and career growth opportunities reap the benefits of increased productivity, improved employee satisfaction, and higher retention rates.

Trend No. 5:

Shorter Time-to-Hire

A lengthy recruitment process is the quickest way to lose out on quality candidates. Hiring managers are tightening up the hiring process to beat the competition and get the first pick of top talent.

Ways to Shorten Time-to-Hire:

  • Use an Applicant Tracking System. An ATS helps streamline the hiring process from resume sorting and interview scheduling to sending automated email follow-ups.
  • Use a Staffing Agency. Staffing firms have access to a pool of candidates in their talent pipeline ready for hire. They often handle the time-consuming admin work required for recruiting as well.
trend5

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Consider asking for candidate feedback at the end of the hiring process to understand where recruitment bottlenecks lie in your process.

Trend No. 4:

Artificial Intelligence (AI) is
Being Applied to Hiring

You’ve already seen AI at work perhaps in chatbots on a website or with automated meeting schedulers, but this technology is poised to make a jump into recruiting.

AI can be similarly used in recruitment by:

  • Deploying chatbots to answer applicant questions or schedule interviews
  • Using chatbots to screen applicants
  • Collecting and analyzing ratings and responses
Workplaces

You’ve already seen AI at work perhaps in chatbots on a website or with automated meeting schedulers, but this technology is poised to make a jump into recruiting.

AI can be similarly used in recruitment by:

  • Deploying chatbots to answer applicant questions or schedule interviews
  • Using chatbots to screen applicants
  • Collecting and analyzing ratings and responses
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Instead, employers should position the company’s brand and value proposition as a draw to a candidate, not solely a job ad. Consider using videos of company culture, featuring employees.

Trend No. 7:

Wages Are On The Rise

wages-1

The cost of attaining top talent in today’s candidate-driven market comes at a high price. Job seekers aren’t only looking for more comprehensive perks and benefits; they’re asking for higher pay too.

According to the U.S. Bureau of Labor Statistics, the mismatch between candidate supply and demand has resulted in sharp increases in pay, especially for hard-hit industries. The foodservice industry has seen restaurant wages rise more than 46% over the past three years.

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In the past, candidates might have been drawn to a position based on salary alone. Today, competition for top talent is at an all-time high, and businesses are more likely to win if they present a holistic picture of the position, including company culture, benefits, training and advancement opportunities, and other perks. Salary is only one component of the puzzle.

Trend No. 8:

Emphasizing Talent Acquisition
and Retention Strategies

retention

With resignation rates on the rise, businesses are implementing tactics to attract candidates and incentivize employees to stay.

Adequate compensation is essential to retain talent, but it’s not all that matters. Offering competitive pay, in addition to creating an ecosystem of opportunity, growth, and appreciation, will help draw candidates and retain employees.

Employee Benefits in High Demand:

  1. Remote/Flexible Work
  2. Comprehensive Health Plans
  3. Free Office Food
  4. Paid Family Leave
  5. Student Loan Assistance
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In the past, candidates might have been drawn to a position based on salary alone. Today, competition for top talent is at an all-time high, and businesses are more likely to win if they present a holistic picture of the position, including company culture, benefits, training and advancement opportunities, and other perks. Salary is only one component of the puzzle.

Trend No. 9:

The Importance of Diversity,
Equity, and Inclusion

Candidates are holding organizations accountable for the initiatives they promised last year.

49% of recruiters reported that candidates inquire about a company’s diversity, equity, and inclusion (DE&I) efforts – up 16% from 2020.

Benefits of Cultivating a Diverse Workforce:

  1. Increased Innovation
  2. Expanded Global Perspective
  3. Higher Revenue
diverse
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If you’re looking to improve DE&I efforts in the workplace, consider setting a diversity goal for the recruiting process to measure success, and equip your current workers with diversity education and training.

Trend No. 10:

Hardest Hit Industries
Are Bouncing Back

The world is experiencing a digital transformation where people are connected “on the go” 24/7 via mobile devices. 81% of Americans have smartphones and over half own a tablet or e-reader.

Job searching on mobile devices has become increasingly popular, particularly through social media apps.

55%are Gen Xers
52%are Women

The leisure and hospitality industries were hit hardest at the beginning of the pandemic, accounting for 39% of all lost jobs. In 2021, the sector led job creation. Employment rates are still below pre-pandemic levels for many industries, but some like hospitality and manufacturing have had notable job gains in the last half of 2021.

growth-1
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In the past, candidates might have been drawn to a position based on salary alone. Today, competition for top talent is at an all-time high, and businesses are more likely to win if they present a holistic picture of the position, including company culture, benefits, training and advancement opportunities, and other perks. Salary is only one component of the puzzle.

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can help you hire the right people?

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