One of the most interesting statistics regarding hiring in 2022, is that the best candidates for a job are only on the market for 10 days.
Surprising right? Almost seems incorrect.
The current job market is like everything these days, slightly tumultuous.
Hiring in 2022 poses new challenges more than ever. Companies are forced to find new ways to recruit and retain employees, as quitting rates and job switching is at an all-time high. Turnover rates have jumped almost 20% since pre-pandemic, going from 31.9 million to 37.4 million in 2022.
So what is so different about hiring in 2022 versus the pre-pandemic era?
The main challenges recruiters and companies are facing are complex and solutions are dependent on multiple parties, which significantly slows down the process.
There is a massive labor shortage, mainly credited to the pandemic and its disruptive qualities that spanned across industries, some more than others. Industries such as food service and hospitality see the biggest hits when it comes to labor shortage. It seems everywhere you look there are hiring and please be patient we’re short-staffed signs. Schools, hospitals, and restaurants are all feeling the heat. The Washington Post reported 11 million job openings in September of 2022 while only 6 million unemployed workers. This shortage unfortunately only fuels the fire, because now those employed are left ultimately doubling their workload to account for their lack of co-workers as employers struggle to hire. This unequal balance of jobs available and those looking for work puts a massive strain on companies and their employees.
There is an uptick in potential candidates who are unemployed but not actively seeking employment. Aside from a labor shortage, those who are working are already comfortably nestled into a position. These candidates often are already employed at places they enjoy and don’t plan on leaving. Linkedin found that nearly 70% of the workforce is not currently looking for a job, leaving 30% of candidates to actually pool from. The present-day hiring environment is significantly different than it ever has been before. An increased emphasis on a healthy work balance and protecting employee morale has pushed employers to respect this need. Recruiting has become increasingly difficult and complex and navigating passive candidates is just one of the recruitment nuances.
Candidates looking for work have a plethora of employers to choose from. Platforms such as Linkedin, Glassdoor, and Indeed display thousands of companies all looking for the same type of candidates. All these platforms have detailed analytics about employee happiness, salary transparency, and work-life balance. It’s harder than ever for companies to stand out in order to attract candidates. Using social media and having a strong online presence benefits companies when advocating for their brand. As well as securing their company culture is actively being demonstrated through content.
Recruiters are facing a significant challenge when it comes to the hiring process. The competition to secure the best candidate is stiffer than ever. They have to be creative and figure out how to entice job seekers. The average time spent on a hiring process is around 36 days but could even be longer. While 55% of candidates believe the hiring process should only take around 2 weeks from the first interview. This disconnect between timeline expectations is brutal for recruitment. There is a massive push for candidate-centric hiring, focusing on hiring for long-term relationships to decline turnover rates.
Lingering pandemic effects, record-high inflation coupled with strinkflation, political unrest, and whispers of a recession all are very real concerns for the current year and the upcoming. The world looks very different and the job market is a reflection of that difference.
The most notable market trends in 2022 are increased remote and hybrid work preferences. Zippia speculates by 2025, 36.2 million Americans will be working remotely. The preference between remote working vs in-person is highly individualistic. However, remote workers quoted they’re less stressed, improved morale, take fewer sick days, and have a better work-life balance. The same study from Zippia found 68% of Americans prefer working remotely.
Increased transparency when it comes to salaries is a massive job market trend. Websites used for job search often more than not display the salary on the job posting. This transparency has had a positive impact on employees' perceptions of job satisfaction and trust. Salary transparency leads to increased employee performance. By allowing salary transparency negotiations are more likely to occur as well as increased hiring competition.
Having a healthy work-to-life balance is incredibly important to employees now more than ever. This balance leads to a range of benefits from increased employee productivity, lower risk of burnout, and improved mental health leading to increased motivation. Aside from a healthy work-to-life balance, unlimited PTO is a big trend within the job market. Unlimited PTO trend, while seems counterintuitive, is incredibly beneficial for productivity. Employees who have unlimited PTO have a strong sense of trust in their employer, they feel autonomous in their role. Incorporating unlimited PTO is a strong recruitment strategy to attract candidates as well.
The past few years have highlighted the fact that nothing is permanent and things change at the drop of a hat. No one wants to work at a company that doesn’t value innovation and remains stagnant. It signifies the company isn’t investing in its future and its downfall is just around the bend. By creating an innovation-friendly work environment candidates are attracted to the future-focused approach. It translates to increased job security because the company is not only willing to change with time but prioritizing it. Being an innovative company is a significant selling point when trying to hire more employees.
But why is being an innovative company so attractive to those looking for new employment?
What’s the hoopla about?
Being innovative isn’t just investing in new technologies and implementing them. It goes deeper than that. It’s about presenting a unified culture that favors and celebrates innovation. Employees at an innovative company feel heard and enjoy the ability to collaborate, their opinions are valued and welcomed.
A report completed by EY found candidates value innovative companies and 69% responded saying they would leave their current role to join a company that is considered an innovative leader.
Working at an innovative company isn’t just valued for the increased supportive and inclusive culture but a massive draw is that the work is more interesting and engaging. Innovative companies allow workers to feel as though their work is important and they are moving the needle in a meaningful way. There are opportunities for upskilling, the process of boosting employees' existing skills. This secures a pathway for advancement as skills are gained. It helps ease the common fear of employees that eventually the tech will outpace them and their jobs will become obsolete and replaced by tech. Working for an innovative company creates a breed of employees that are more adaptive to disruptive tech. Not only are they adaptive to disruptive technologies but employees feel more secure in their roles because they feel employers are investing in their own careers.
Studies show that innovation is more obtainable by a firm if it is approached with a top-down model. Time and time again, leadership that celebrates innovation allows it to enter the firm more strategically. Companies with innovative leaders trickle down to employees who are empowered.
An employee value proposition(EVP) is a statement offered to candidates that outlines the unique benefits that are given if they accept a role. It provides a competitive edge for recruitment in an already extremely competitive job market.
Candidates seeking employment seem to have the upper hand and leverage as companies are desperate to fill roles. With the sheer number of choices where to work increasing, to secure strong recruitment and hire the right candidates' firms need to be creative with how they present themselves and their EVPs. The main key to presenting a strong EVP that will sway candidates away from competitors is differentiation, creating a unique EVP that is not easily copied or substituted. It will motivate candidates to apply for roles because they’re so attracted to what is being advertised.
A strong EVP connects with the company’s brand and culture, reflecting its values. It needs to be authentic and translucent because authenticity attracts authenticity. It should reflect the experience of current employees, highlighting why they stay at the company and why they love it. It should also reflect what’s important to customers as well, showcasing career opportunities, job security, and a sense of freedom. Above all, a strong EVP is more than just compensation and benefits. While it should mirror minimum industry standards taking a step further will entice candidates.