The talent shortage remains the biggest challenge in 2022. Over 3% of workers leave their jobs voluntarily each month, making human resources the biggest constraint to economic growth this year. That being said, acknowledging hiring trends will help employers fulfill their talent acquisition demand as there will be significant growth in jobs and the need for skilled workers and experts.
In this post, we are going to list at least five hiring trends employers should know this year so you can start implementing strategies not only to recruit qualified employees but also to retain their service and develop it for the sake of your company’s growth.
Trend #1: Attract candidates with remote work options
If there’s anything that we have learned from the beginning of the pandemic a couple of years ago, it is digital transformation. We have learned how to be more human-centric in the digital world. Over time, we also get to learn how to be more flexible while giving workers the ability to do their job with more autonomy, even though they have to work remotely.
From the candidate’s point of view, having an option to work remotely enables them to have a better work-and-life balance. Based on Gallup research, 54% of employees admit that they would change jobs for one that could offer them more flexibility.
Hiring remote workers can reduce their operational costs by $11,000 per employee for employers and companies each year. In the meantime, employers can also reduce the turnover rate while maintaining the cost of real estate and electricity that can be lower than having to cater to your employees’ needs at the office.
Trend #2: Reduce bias by creating a more streamlined hiring process
The increasing rate of Baby Boomers’ retirement pace in 2022 also allows more progressive recruiters to start implementing a more streamlined, tech-based hiring process.
According to the Harvard Business Review survey, up to 65% of managerial tasks are leaning toward automation by 2025. This includes the role of HR manager that can be replaced by artificial intelligence for some basic administrative workloads, including scheduling or expense reports.
More than ever, the hiring trends to proactively engage potential candidates are emerging, even when the companies try to hire entry-level positions. A social network platform like LinkedIn allows recruiters to adopt proactive engagement strategies to fill in the increasing labor skills gap these days. On top of that, automation technology also plays a bigger role in their hiring process.
While automation in the recruitment process won’t justify the replacement of recruiters, the technology can empower them to work efficiently to make better decisions faster. Automation tools such as resume screening software and digital calendar are proven to give employers more time to do more essential works in the hiring process, which includes building a relationship with potential candidates.
Trend #3: Talent marketplace platforms
Talent marketplace platforms are by far the most disruptive change in the human resource landscape. A talent marketplace helps employers connect directly with staff based on the scope of work they need. At the same time, from the employee’s point of view, it also allows them to promote their skills and showcase projects of their interest.
As an employer, companies need to understand the significant change in what job seekers want and expect from the exchange of their service. Most candidates these days demand flexibility, and talent marketplace platforms like Upwork or Freelancer enable you to create a symbiosis between companies and employees. It connects you to talents with adequate skills if you’re up to managing hybrid or remote workers from your premises.
Hiring freelancers can be an alternative if the cost of hiring is your concern. It eliminates most of the overhead expenses compared to hiring full-time employees, and you can still achieve your work output based on the skills that they offer.
Trend #4: Take action on Diversity, Equality and Inclusion
Employee experience has become one of the essential focuses of the hiring process in today’s market. Companies are facing a major labor shortage, so it is fair to say that the most effective way they can do about it is to retain their existing employees through excellent employee satisfaction, and that includes not just saying your business is inclusive and diverse, but acting on those principles.
In today’s working culture and economy, it is hard not to talk about money and equality as a few among many hiring trends for employers to acknowledge.
The business case of the DEI (diversity, equality and inclusion) dynamics in the workplace is becoming stronger than ever. A diverse team is necessary for companies to keep up and remain competitive among their peers. Not only can it improve their business outcomes, but it can also boost creativity for your business which may lead to more significant profitability.
With that being said, fair pay is proven to be one of the most vital drivers of employee satisfaction. Fairness in rewards and recognition in the hiring process can get you the best talent.
Trend #5: Implement employee retention strategies
Based on the U.S Bureau of Labor Statistics report, the employee quit rate has reached an all-time high up to 3% in September and November of 2021. The increasing rate of employee turnover is not only expected, most likely it will reach the peak this year.
With the tight labor market, employers should consider implementing strategies to retain their employees to sustain their workforces. On top of that, investing in your employees’ professional development can go a long way for the future business, as upskilling your workers can support them for their professional growth.
Employee retention remains the huge motivation for internal mobility. From the employer’s perspective, the internal hiring process is also cheaper, and it comes with a lower risk compared to external recruitment.
For employees, knowing that their employer will acknowledge their performance, which can lead them to career advancement, can also improve their productivity. In addition to that, it can boost their morale and improve their productivity, which can make a massive impact on the company’s overall outcome.
Why employers should keep up with hiring trends
With the significant labor shortage going on, keeping up with hiring trends is a way that employers can help ensure that their team consists of highly qualified workers.
The combination of advanced technology and HR talent remains the best hiring strategy to ensure that your needs are met through the recruitment process. But while investing in technology is important to keep up with the industry pace, investing in people we believe in is still the top priority. Despite everything, people are still the best investment for your business.
Building the trust within your team takes time, so hiring the right people with the qualifications that match your needs is the least thing employers could do. It takes effort to shortlist the best candidates for your team, especially with the decreasing employee retention rate in the past years.
While the knowledge of recent hiring trends won’t make the recruitment process easier, it will help you understand the holistic value of employees in your organization. After all, the main goal for every employer is to build a solid team that is committed to achieving your collective goals. And more often than not, hiring them requires the need to understand them.