Best-selling author, speaker, executive coach; peer advisory boards #ChampagneMoment www.ExactlyWhereYouWanttoBe.com.
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The last few years have created a turbulent labor market. The rising cost of living, pandemic layoffs, labor shortages and employee churn has left many organizations struggling to keep their workforce full. Much of this movement (often referred to as the Great Resignation) can be attributed to the nearly 47 million employees who left their employers in 2021 in search of better working conditions, work-life balance, career advancement and higher pay. Most experts believe that many of these challenges will remain for the foreseeable future.
January is a popular time of the year to hire. As an employer, this means two things. Firstly, you better believe your existing team are being approached with fresh opportunities, and secondly, you’re about to enter an even tougher job market in terms of recruitment.
Companies that fail to adapt to the needs of the modern worker will inevitably struggle with attracting and retaining good-quality employees. Here are some ways to continue hiring the best talent in today’s labor market.
1. Address compensation issues.
One of the top reasons people left jobs during the Great Resignation was to secure better compensation. Rapid wage inflation has left many employers unable to compete based on their historical compensation packages. Employers should take the time to carefully conduct a compensation analysis to ensure their pay and benefits align with the current market. During the compensation analysis, you want to review your current pay practices, your area’s cost of living index and the pay being offered by competitors.
It’s important to note that compensation extends beyond a paycheck. Companies can offer special perks that don’t cost anything such as flexible working hours or letting employees bring a pet to work.
2. Provide location flexibility.
During the pandemic, employees across the country got a taste for remote working. Many employees feel that remote working has many benefits, including a better work-life balance, higher productivity and cost savings (less dry cleaning, lower transportation costs, etc.). Employers also benefited from having remote employees. One study found that employers who gave employees the option to work remotely reduced absenteeism by 56%.
Companies that provide flexibility when it comes to where and how employees work can have a much easier time attracting employees. There are many options available including full-time remote working, hybrid models or flexible scheduling to allow employees to complete work when it is convenient for them.
3. Offer career advancement opportunities.
Employees care about their ability to advance and grow within organizations. Companies that offer career development and advancement are likely to have a much easier time hiring new employees. Having clear career and promotion paths can provide employees with the motivation and direction they need to keep chasing their next opportunity. Even if those positions don’t exist today, focusing on training and mentoring programs can help employees continue to hone their skills.
4. Work on company culture.
Every organization is unique, and it’s important to find employees that are a good fit for the company culture. Companies with a positive culture benefit from having more engaged employees and better recognition in the market as a great place to work. Start by allowing existing employees to share their experiences and provide feedback through anonymous employee surveys. Here are some easy ways to start improving your culture today:
- Set clear goals and expectations for employees. Employees are happier when they feel they have a purpose and goals that fit into the company’s vision.
- Provide more autonomy. Managers should give employees more control over their work without micromanaging. Focus on building trust and address concerns through regular one-on-ones.
- Give recognition. Implementing a rewards and recognition program can be a great way to boost morale and the company culture.
5. Always be hiring.
The current job market has shown that rapid fluctuations in staffing needs can quickly disrupt businesses. Short-staffed organizations have an increased risk of burned-out employees. This, in turn, can create a vicious cycle where overworked employees want to quit, leaving even more vacancies. Companies can address this by continuously recruiting and interviewing for roles within the organization. While this can be time-consuming, it can save a lot of headaches when key employees depart unexpectedly.
Employment practices that worked in the past may no longer work with the modern employee. Generational shifts, changing technology and worker demands will continue to reshape the workforce. It’s critical for companies to monitor this situation and adapt to stay ahead of the curve.
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