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Current Conditions

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3.7%

U.S.
unemployment
rate

Current Conditions:

  • Interest rates are on the rise
  • Threats to job security have increased concerns for mental health
  • The State of Flexible Work: 40% are in the office full-time; 32% are remote; 28% are hybrid
  • Many big tech and startup companies have announced hiring freezes and layoffs
  • The candidate market has slowed due to economic uncertainty, although it's still considered "tight”

Trend No. 1:

Recession Worries Rise

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While a severe market downturn isn’t inevitable, anticipatory concerns have risen among employers and employees alike a so-called Great Apprehension. As companies brace for an uncertain future, they are combating the anxiety with layoffs, hiring freezes, and, in some extreme cases, rescinding job offers. Employees have slowed their job hunting and are spending less.

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In a world of slower job growth, higher inflation, and more expensive capital, businesses can rely on scenario planning and prepare a set of long-term moves to help them adapt and thrive during uncertain times.

Trend No. 2:

Quiet Quitting

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Quiet quitting is not about quitting the job – it’s about quitting the idea of going above and beyond. “Quiet quitters” are those who do the minimum required and are psychologically detached from their job.

  • "Quiet quitters" make up at least 50% of the U.S. workforce
  • Gen Z and younger millennials – those below age 35 – are the most disengaged
  • Most dissatisfied employees are actively job hunting

Quiet quitting can be a symptom of poor management. Managers themselves must be engaged at work and learn how to have conversations with employees to boost morale and keep the burnout at bay.

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The best way to reengage employees is to have at least one meaningful conversation per week. Consider holding a 15- to 30-minute weekly one-on-one meeting with each team member.

Trend No. 3:

Reskilling the Workforce

Reskilling is the process of equipping employees with new skills to perform a different, often lateral job.

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The Benefits of Reskilling for an Organization:

  • Reduces training and hiring costs
  • Retains company knowledge
  • Secures top employees
  • Promotes internal mobility
  • Increases employees’ morale
  • Improves company reputation
  • Develops a more versatile workforce

According to the World Economic Forum's Future of Jobs Report...

50%
of all employees will need reskilling by 2025 as the adoption of technology increases
40%
of workers will require reskilling within six months or less
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Emerging technologies may soon render many roles and skillsets obsolete. Evaluate your retention strategy and implement reskilling and upskilling initiatives to keep your workforce engaged, knowledgeable, and competitive.

Trend No. 4:

Emphasizing the
Employee Experience

Employee experience is a top priority for 47% of HR leaders, and rightfully so, as positive employee experiences help drive the social and financial success of a company.

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Expectations are Evolving

Employees are looking for companies that focus on the following areas:

  • People-First Approach: Employees seek management and a company willing to listen and meet their individual needs
  • Flexibility: One size does not fit all, and employees desire flexible hours and benefits that fit their lifestyles
  • Shared Purpose: Employees are increasingly searching for organizations that align with their ethics, values, and politics
  • Overall Well-Being: Employees look for companies that take a holistic approach to mental, physical, and emotional health
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A McKinsey survey found that managers tend to overvalue the importance of “transactional” factors such as pay and development and underrate “relational” elements that employees value most, such as feeling appreciated, the companionship of trusting teammates, and a flexible work schedule.

Trend No. 5:

Stay Interviews to Retain Talent

Stay interviews, often conducted with current high-performing employees, help companies understand what their employees like about their roles and why they stay. With newfound insight, employers can pivot to create positive change.

How Do Stay Interviews Impact Retention?

  • Check-ins help your employees feel heard and validated, which increases satisfaction and engagement
  • Understanding employee motivators can help you create and tailor an incentives strategy
  • They provide insight into day-to-day operations, including gaps or pitfalls
  • Stay interviews can be used to understand the needs and long-term goals of your employees
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Stay interviews help companies learn about their employees’ motivations, identify patterns and areas for change, and understand exactly what employees need to happily stay with their company.

Trend No. 6:

The Evolving Role of the Manager

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Traditionally, the role of a manager has been straightforward: managers oversee employees and provide feedback on their performance. However, times are changing, and the role of a manager is evolving.

In addition to managing, they're also expected to embody the following roles:

  • Leader: Motivating and inspiring the team through their example
  • Coordinator: Looking after the nuts and bolts of the job, ensuring operations run as they should
  • Coach: Developing individuals and teaching skills to help them excel
  • Mentor: Guiding team members to become well-rounded and fulfill their potential

Beyond the job ad pitch, employers can position the company’s brand and value proposition as a draw to potential managers.

Trend No. 7:

Mission Creep Sets in
for HR Professionals

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Mission creep is the unexpected broadening of duties of an original role, and a tight labor market and financial constraints have led human resource professionals to become well-acquainted with this phenomenon.

Common side effects of HR mission creep:

  • Human capital resources become stretched too thin
  • Employees are redirected from their core purpose and job duties
  • Burnout from requiring already overextended employees to take on extra duties
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When you place more responsibilities on HR professionals to take on duties outside of their job description, be sure to compensate accordingly. Consider freeing up your HR team by offloading time-consuming work, like hiring efforts, to a staffing agency.

Trend No. 8:

Hybrid Work Models
are Here to Stay

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Workers will no longer be coerced into returning to a central office after proving that it is possible to work just as efficiently at home. One-size-fits-all solutions won't work when it comes to workforce practices. However, offering flexibility is a smart move (if it works for your business, of course).

  • 64% of workers would consider quitting if ever asked to return to the office full-time
  • 35% of employees would change jobs if they could work remotely full-time
  • Owl Labs found hybrid employees were 22% happier than onsite workers
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57% of employees want the ability to work from home. With workplace flexibility now a critical factor in a company’s hiring package, consider offering options that work for your business.

Trend No. 9:

Former Workers
Boomerang Back

Boomerangs are employees who return after leaving an organization.

The best boomerang employee is one who left the company on good terms. Be sure you understand why the employee left in the first place. Address issues to clear the air and start fresh.

Why hire back a boomerang employee?

  • The employee understands the company and knows what they are signing up for
  • Boomerangs likely already have relationships with team members, making integration into the culture smoother
  • Saves on time and costs required for onboarding and training new workers
  • Once a boomerang returns, they are often more committed than they were before and turn out to be a long-term asset
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Leaders should invest time in fostering and maintaining relationships with current and former talent. Boomerang employees can be a key ingredient in building a strong and knowledgeable company culture.

Trend No. 10:

Retirees Reenter
the Workforce

Top Reasons Why Retirees are Returning to Work:

60%
ARE SIMPly looking for something to do
27%
Fear inflation will chip away at their retirement savings

We’ve heard about the Great Resignation – but what about the Great Unretirement? According to Indeed, 1.7 million Americans who retired a year earlier have returned to the workforce. That represents just more than 3% of overall retirees.

Similar to younger workers, retirees returning to work want flexibility. The vast majority (79%) want to work part-time, and half of retirees say the work they’re looking for could be in-person or remote.

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Retirees are an overlooked talent pool that organizations may consider to combat labor shortages. Embracing generational diversity in your company can lead to knowledge-sharing, improved customer experience, increased innovation, and employee retention.

Ready to see how FrankCrum Staffing
can help you hire the right people?

Contact us today for a free 15 minute consultation