Courtesy Walrath Recruiting Inc.
By Rene A. Walrath
Despite the concerning job cuts, recent reports suggest that workers will continue to have the upper hand in the labor market. Recruiters and hiring managers will need to become more proactive, or aggressive, in their search for top-tier talent. Job seekers have their sights set on the total package, the most prominent being enjoyment and fulfillment in their role, in addition to a hearty salary and benefits package.
The year 2022 brought about many workforce trends, the most considerable being the availability of remote work. While offering remote work may continue to be an option with some companies, especially within IT and technology, it is not as commonplace as it was two years ago.
More and more companies are heading back to the office. There has been a gradual shift from working at home to being in person, many companies are or have been requiring their employees to spend a significant amount of time in the office.
While making this transition to in-office requirements, companies are now more cognizant of employees’ circumstances, and some will continue to offer a hybrid schedule. These employers willing to offer individuals a more robust work-life balance and make accommodations for working parents will lure more highly qualified and desirable employees. Measuring and understanding employee well-being is becoming a vital way to attract and retain top talent.
Salaries have increased minimally by at least 8 percent, yet higher pay remains one of the leading reasons employees seek new opportunities. Due to inflation and rising living costs, employers and companies have had to adjust accordingly to keep and find highly qualified individuals.
SHRM Online stated that more than two-fifths of organizations surveyed in the latest Salary Budget Planning Report have adjusted or will be adjusting salary ranges more aggressively to keep up with the competitive labor market. Companies that are more proactive, investing in higher compensation and benefits will be able to draw more eyes to their open positions and readily increase the number of applicants.
This will also be a year of greater transparency when it comes to the workforce. With other states passing salary and wage gap laws, pay transparency will become more prevalent. Employers will need to start including the salary range of job postings to even the playing field across all genders, races, and ethnicities. Employees will seek out companies that are more open with their income/salary and their communication.
There will be a gradual shift from keeping employees in the dark and bringing them into the light.
Turnover rates will continue to be on the rise. A notable concern that prospective employees have is that they are simply unhappy with their current company and are rethinking their career choices. Countless individuals are even seeking new opportunities where their skills are easily transferable, often to an entirely new industry.
For example, the education field has seen one of its highest turnover rates. Teacher burnout is reaching an all-time high with educators actively deciding that their personal well-being is more important. A previous study by the National Education Association found that 55 percent of teachers are considering leaving the profession earlier than planned.
While education is just one example, there are many job seekers that are feeling overworked, underappreciated, and burnt out thus pursuing new options. Employers must prioritize the requests of employees by having conversations at the worker level, often intercepting problems before they occur, or otherwise offering a path toward an agreeable resolution.
We’ve noticed over the past year that employees will be looking to work for companies that offer greater workforce diversity and not just a weekly paycheck. Employers who continue to promote diversity, equity, and inclusion within their organization will increasingly attract a wider range of talented employee prospects.
The year 2023 will be another banner year of change and adaptation to current and new trends in the labor market. With the items above, you, and your company can step into the forefront of being an open, inclusive, transparent, and desirable place to work.