Hiring Trends for 2021:

WHAT HIRING MANAGERS NEED TO KNOW

COVID-19 upended the U.S. job market in 2020, leaving employers and job seekers to face the residual effects. As the economy is expected to rebound in 2021, there are changes in store for recruiting. Let's take a look at what experts are keeping an eye on.

Current Conditions

5.9%

The U.S.
unemployment
rate.

Current Trends:

Employers have their pick of top talent
The hiring process is taking longer than before
Hardest hit by permanent job losses are sectors such as hospitality and leisure
Risks associated with COVID-19 are a concern for some workers
School closures and childcare costs challenge many working parents

Trend No. 1:

Employers Embrace
Remote Work

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83%
of employers now say the shift to remote work has been successful

42%
of employees would take a salary cut in exchange for flexible work options

The COVID-19 pandemic forced many companies to adapt to remote work, debunking telecommuting myths of lost productivity and poor communication.

Organizations like Adobe, Aetna, Microsoft, and Facebook have embraced flexible work schedules in the long term.

Benefits of offering remote work options:

Reduces overhead costs for employers
Increases productivity among employees
Improves employee satisfaction and retention
Provides a wider pool of candidates

Although there are many benefits to remote work, disadvantages exist like decreased employee visibility and lack of relationships among coworkers. By critically examining your business and employees' needs, you can determine the type of flexibility that will work best for everyone.

Trend No. 2:

The Rise of
Soft Skills

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The COVID-19 crisis forced businesses to change rapidly, making adaptability a vital skill for employees.

Although measurable hard skills are still important, soft skills like flexibility, problem-solving, and communication have become more important in this uncertain environment.

The most in-demand soft skills, according to a recent LinkedIn study:

Adaptability
Creativity
Emotional Intelligence
Collaboration
Persuasion

Tech positions usually take the top spots for growth potential, but the pandemic has increased popularity for human-centric jobs like healthcare professionals and workplace diversity specialists.

Trend No. 3:

Virtual Recruiting
is Here to Stay

Many organizations utilized remote assessments before the pandemic, but a beginning-to-end remote hiring process may be the new normal.

71%
of businesses have integrated some degree of remote hiring methods

81%
of HR professionals agree virtual recruiting will continue post-pandemic

70%
of talent professionals say virtual recruiting will become the new standard

Trend No. 4:

Artificial Intelligence (AI)
is Applied to Hiring

We've been in the midst of the artificial intelligence revolution for some time, but the use of AI in the recruitment process has become increasingly popular.

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Recruiters use AI to supplement their talent acquisition process, assisting with heavy lifting at high speeds.

Recruitment chatbots can help interact and engage with candidates and provide them with job information
Sourcing AI can help find, screen, sort, and rank candidates to create a pool of highly qualified job seekers
Automated scheduling tools for interviews can reduce coordination time

Recruitment automation can make the process up to 90% faster while also improving the quality of candidates based on past hires.

Trend No. 5:

Emphasizing Diversity
and Inclusion

In 2020, many employers looked critically at diversity within the workplace and took steps to rectify inequality and emphasize inclusion.

Ways to attract and hire diverse candidates:

Set a diversity goal to correct underrepresentation over time
Advertise on diverse job boards
Avoid biased or gendered language in job descriptions
Provide unconscious bias training for those involved in hiring

77%
of talent professionals say diversity will be very important to the future of recruiting

60%
of employees reported improved engagement among coworkers after wisnessing employer involvement in societal issues

Since the summer of 2020, Glassdoor has seen a 66% increase in users mentioning racial equity and diversity in their company reviews.

Trend No. 6:

Boomers Are Leaving
the Workforce

28.6 Million

Baby boomers (born 1946-1964) left the workplace in q3 of 2020 according to Pew Reasearch

In 2020, some businesses offered older workers early retirement while some workers self-selected retirement to avoid the challenges of working through a pandemic. Earlier-than-planned retirements could mean premature loss of productive workers, plus skill and knowledge gaps.

How Boomer retirement affects organizations:

Loss of extremely dedicated workforce
Loss of loyal employees
Loss of experience and expertise
Change in workplace culture

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As boomers retire and younger workers enter the workplace, consider formulating a program to transfer institutional knowledge through cross-training, cross-generational teams, and mentorship programs.

Trend No. 7:

Addressing Mental Health
in the Workplace

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As people suffered through isolation, financial challenges, stress, and grief, 2020 turned a spotlight on the topic of mental health. As awareness grows, companies are working to destigmatize mental health by introducing and expanding benefits.

According to a recent PwC workplace survey:

31%
of employees say their company has successfully addressed mental health

72%
of employers say they plan to introduce more mental health support

Mental health assistance is often offered through healthcare providers or an employee assistance program (EAP). Be sure your employees know how to access the care available to them.

Trend No. 8:

Going Beyond Salary

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Another shift we're seeing is an emphasis on benefits and incentives.

Benefits most valued by job seekers:

Health, dental, and vision insurance
Flexible hours / Remote work options
Additional vacation time
Student loan assistance

The disruption and uncertainty of the COVID-19 crisis caused some workers to reevaluate their priorities. In the past, candidates may have accepted a position based on salary alone, but now benefits like healthcare, retirement plans, and flexible work schedules have become more important. Salary is only one component of the puzzle.

Trend No. 9:

Career Transitions
From Hard-Hit Sectors

Close to 10 million jobs have been eradicated since the beginning of the pandemic. Mass layoffs and troubled industries forced many unemployed workers to shift gears and change careers.

Hardest-hit sectors:

Hospitality and Leisure (Unemployment Rate = 16.7%)
Oil, Gas, and Mining (Unemployment Rate = 13.1%)
Travel and Transportation (Unemployment Rate = 8.4%)

Several sectors are not projected to recover until 2025.

Trend No. 10:

New Roles Emerge

14% of Businesses

have created new positions as a result of COVID-19. Though some sectors have lost jobs, the public health crisis also created
several new roles.

Emerging Roles:

Social Media Salesperson: Supports a business' shift to online sales
Guest Services Attendant: Informs restaurant guests how to dine safely according to health and local COVID-19 guidelines
Delivery Roles: Positions like "driver" and "delivery driver" have seen an uptick of 243% since March 2020
Temperature Screeners: Takes employees' temperatures to slow the spread of coronavirus