Hiring and retaining talent in a crisis – volatile economy and tight labour market

The recruitment industry is going through a rough patch as the economy remains volatile and the labor market continues to tighten up. There has been a consistently low supply of workers.

 Workers today are quick to migrate to new companies, especially if they are unsure about future salaries, appraisals, and on-time payment at their current workplace. Moreover, they are looking at more than just a paycheck when they decide to work for a company.

 This could be the aftereffects of the Great Resignation, but it could also work to your advantage.

Is the Great Resignation a blessing in disguise?  

 The term “Great Resignation,” coined by Anthony Klotz, is now often redubbed as the “Great Migration,” given that people are not just quitting their jobs but also migrating to better work opportunities. This offers a great opening for organizations to refresh their branding and find new talent by establishing themselves as the “better opportunity.”

Hiring in a tight labor market and volatile economy 

By tight labor market, we mean a market in which there is a much higher volume of job openings compared to the available talent. This gap could be due to a mismatch in skillsets or work locations, but we should also acknowledge that worker preferences have changed and many companies have been slow to adapt.

It is important to expand your horizons when looking for talent so you can source efficiently and at scale. Remote work became prevalent during the pandemic, and it’s more possible than ever to remove location barriers for jobs that don’t require employees to be at the office.

Hiring for potential by identifying teachable skills can also help you secure and nurture good candidates. This provides you with a more flexible strategy while also helping employees grow within your organization. Creating great leaders from within the organization can directly impact long-term business success.

Three  important aspects of hiring and retaining workers in the current market 

We believe that these are the three most critical aspects of hiring and retaining great employees.

1) Offer a competitive package

It might seem obvious, but it is one of the most (if not the most) important factors that candidates consider before accepting an offer. Make sure that you are researching the market compensation for every role and understand how much your competitors are paying. This way, you can ensure that the talent you source does not abandon your hiring process for a better paycheck.

It is also important to clearly communicate the remuneration breakdown, such as bonuses and benefits, along with your company appraisal system so that employees know what to expect.

We recommend laying out a potential career path within the company should the candidate accept a particular role. Most importantly, you’ll want to highlight how it can offer them stability and growth in the years to come.

2) Focus on the employee experience

Remember that a good employee experience starts with recruitment. A structured hiring process can secure candidates more quickly and provide a great first impression. It’s best to digitize this process as much as possible with technology that ensures hiring efficiency.

You can also draw in more candidates by sharpening your employer branding. This may include displaying up-to-date employee feedback on your career page for potential candidates to see.

Try to use every opportunity to engage with candidates through channels like email, your website, and even social media. Consistently adapting to new ways of working can also help to attract new talent and retain current employees.

3) Expand your candidate pool

Great talent can be developed in-house by dedicating adequate time and resources to employee training. Instead of looking for the perfect fit, look for candidates with clear promise. You may even gear your hiring toward those who are new to the industry or just starting off their careers, as these candidates are often open to learning and eager to build their skillsets.

We recommend creating a vision for every role and candidate and hiring proactively for roles that you may need in the future. It can also help to explore new ways to source and hire candidates. Remote hires, temp workers, internships, returnships, temp-to-hire jobs are all various avenues that you can explore.

Adapt to overcome 

Recessions can be a huge challenge for companies. But even when things are looking unfavorable, organizations that are quick to adapt to new changes are much more likely to flourish than those that wait for conditions to go back to normal. Plus, exploring new strategies could end up working in your favor further into the future.

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