It’s amazing what a difference 10 months can make. Our January 2022 edition of Global Talent Trends found that job seekers considered work-life balance their top priority when evaluating employment opportunities, edging out compensation and benefits.
Since then, global economic growth has slowed, layoffs have generated headlines, and inflation has become a persistent concern. Our latest Global Talent Trends report reflects this ongoing uncertainty, as compensation and benefits has reclaimed the No. 1 spot in the list of things candidates prioritize in their job searches.
New LinkedIn data captures this turbulent chapter in the world of work — a time when business leaders are tasked with balancing unpredictable external forces with their need to set up both their organizations and people for success.
Read on for new data insights on what’s going on with hiring around the world; what’s motivating workers to look for work; and what keeps employees at their companies.
Hiring is slowing down
Over the past year, the labor market has been called unprecedented, unusual, and unpredictable. LinkedIn’s hiring rate is now tracking decreases in many countries across the globe — but keep in mind that this is coming off historic highs in the second half of 2021.
Karin Kimbrough, LinkedIn’s chief economist, says we may see continued deceleration in hiring but acknowledges that the dynamics of the labor market are still tight.
“In many ways,” she says, “employees still hold the power to demand more from their employers when it comes to salary, flexibility, and benefits.” Check out the report for Karin’s counsel on how talent leaders can weather uncertainty in the economy and the labor market.
Employees are feeling nervous about money
The slowness in the economy and inflation aren’t lost on employees, notes Guy Berger, LinkedIn’s principal economist.
“Employees are acutely aware of this uncertain environment,” he says. “In the past few years, they’ve been worried about their health, their job security, and their pocketbooks. The uncertainty filters into their lives both personally and professionally.”
LinkedIn’s Workforce Confidence Index revealed that candidates’ and employees’ confidence in their ability to improve their financial situation had decreased or remained low from January to August 2022.
Guy attributes this dip in confidence about personal finances to the “economic curveballs” — including the pandemic, an exceptionally fast recovery, supply chain disruptions, and the highest inflation in four decades — we’ve experienced in the last few years,
“More recently,” Guy says, “we’ve seen a sharp slowdown in economic growth in regions across the globe, leaving many unsure of what the future may hold.” For Guy’s thoughts on how talent leaders can assuage employees’ concerns about personal finances, click here.
Candidates have their eyes on compensation
People’s focus on their personal finances is now extending into their job searches. In fact, candidates now consider compensation and benefits their top priority when evaluating job opportunities, followed by work-life balance and flexibility, according to our Talent Drivers monthly survey.
We also highlight in this edition of Global Talent Trends that candidates continue to express interest in remote jobs — even as employers scale back on postings for remote roles.
Jennifer Shappley, LinkedIn’s VP of global talent acquisition, says that even as people are looking for stability amid economic volatility, they’re also not willing to budge on work-life balance and flexible-work arrangements, two areas of work life that have gotten a lot of attention over the past couple of years.
“I expect those two attributes to remain top talent drivers for years to come,” Jennifer says. Read more about Jennifer’s insights into how talent leaders can attract and retain the people their businesses need in this labor market.
Employees who move internally are more likely to stay
Employees are more engaged when they have opportunities to learn and grow, and talent leaders are looking for new and better ways to retain their people. This is where internal mobility comes in. New data shows that employees who have moved internally (via either a promotion or lateral role change) have a 64% chance of remaining with an organization after three years. But employees who haven’t moved internally have only a 45% chance of being around after three years.
Linda Jingfang Cai, LinkedIn’s VP of talent development, sees this new data as a warning sign: If companies don’t help employees see how they can grow their careers internally, they’ll leave.
“I often think what gets lost in conversations about providing learning and growth opportunities that will help retain employees is: What do your employees want?” Linda says. “And this may vary depending on the job functions and demographics. Just as businesses need new skills, employees need to discover their career possibilities and change, too.” Dive deeper into Linda’s perspective on how talent leaders can help employees transform their careers internally.
Final thoughts
Talent leaders are balancing a lot these days. Their executives are relying on them to help navigate business uncertainty. Candidates and employees are relying on them to meet a wide range of needs. It may feel like uncharted territory, but there are signs and signals that can help us navigate what often feels like a new world of work every day.
To receive blog posts like this one straight in your inbox, subscribe to the blog newsletter.
Related articles