According to the Bureau of Labor Statistics, from July 2021 through December 2021, 24 million Americans quit their jobs. But they’re not just sitting on the sidelines. They’ve moved on to the land of wage hikes, signing bonuses, and more attractive benefits than the old clichéd list that companies have been offering for years. That’s 4 million candidates moving around every month. How many did you lose? How many did you hire?
Pulling Out All the Stops To Get Candidates to Accept Your Offer
Every sector is seeing this kind of high turnover, Ron Hetrick, a senior economist with labor market data company Emsi Burning Glass, told Fortune recently. “No one’s immune to it,” he says. “Also, the numbers only tell part of the story. Many employers are dealing with a lot of ghosting, with workers never showing up for jobs that they have accepted. It all contributes to companies spending more on wasted recruitment expenses.”
According to Jennifer Liu, a work reporter for CNBC Make It, “there are nearly two open jobs for every person looking for one, according to the Labor Department’s latest Job Openings and Labor Turnover report. Roughly 6.3 million people were hired into new jobs in December, out of a total of 10.9 million job openings, leaving 4.6 million roles unfilled.”
“The main problem is that increased wages are not getting people who are out of the labor force back in, just paying people who are already working more,” Hetrick says. “That’s causing a disruptive musical chairs game of resignations and hiring.” So, if more money isn’t solving the problem, how do you address your talent shortage?
Updating and Adapting your Talent Acquisition Processes
Jobvite’s survey of over 800 recruiters illustrates the challenges recruiters are attempting to overcome:
- 59% of recruiters said their organizations have experienced increased turnover since the onset of the pandemic in 2020
- 49% of workers reported that job seekers are inquiring about the company’s DE&I initiatives, an increase in 16 percentage points from 2020
- Recruiters shared that medical/dental coverage (51%), 401(k) (49%), and work from home flexibility (44%) have all been effective benefits in attracting new candidates
- 73% of recruiters are seeing candidates ask about negotiating higher salaries. This is up 20% from 2020.
Jobvite also took a pulse on the toll this strange talent acquisition landscape has taken on recruiters:
- 65% of recruiters reported that their stress levels have increased since the onset of the pandemic pressured to fill roles quickly with qualified talent that is in short supply and being wooed by many other companies.]
- Current hurdles in recruiting include a lack of qualified candidates (47%) employer competition (40%), and requirements for in-office work (33%).
What are companies doing differently besides increased wages and signing bonuses?
- Considering diversity-minded job boards;
- Openly advertising a post job’s salary range;
- Increasing benefits for caregivers who have been unable to rejoin the workforce due to the costs and challenges of child-care or adult care, and creating a caregiver leave policy. Legislators are even advocating for this benefit;
- Enticing candidates with nonfinancial incentives: more stable work hours or flexible work hours, rethinking skills requirements – such as not requiring a high school or college diploma; and
- Offering to defray the costs of fertility treatments, and increasing mental health support.
And While You’re At It, How is Your Candidate Experience Process?
Matt Moser, Chief Human Resources Officer at Gallup, offers some insight into your candidate’s hiring experience and processes. “For both candidates and talent acquisition teams, this wild job market has ushered in more “ghosting” than ever before. It’s never been more important that your candidate experience is on point. Candidates have high expectations and plenty of options in this job seekers market.”
He goes on to say, “The result is an alarmingly prevalent ghosting problem — with both employers and candidates vanishing from the hiring process without warning.” Moser suggest asking yourself: what does it feel like to be recruited by your organization? His three keys to a “world-class candidate experience to attract top-tier talent and prevents ghosting:”
- Great recruiters who show genuine interest, a streamlined experience, and stays in communication;
- Clear and frequent communication that is on-brand – culture, purpose and values. Stop the communication failures and gaps in the candidate experience. Thoughtfully design every interaction with the candidate.
- Roll out the red carpet for star candidates during the interview process.
Where Do Hiring Managers Go From Here? Continue to Adapt!
It’s not all discouraging news. Kerry Gilliam, vice president of marketing at Jobvite, commented “But where there’s great challenge, there’s also great opportunity. Hiring teams are using more external workers, looking at different sourcing channels and rethinking requirements for roles. If companies can invest in their hiring teams and rethink their employee value proposition, it is a great opportunity.”
Agility will be key. Everyone is fishing from the same pond. Revamping your recruiting strategies, focusing on your employment brand, and providing an exceptional candidate experience can make all the difference in hiring someone or getting ghosted by them. We have experienced staffing experts, many with decades of experience, at the ready to assist you with your recruiting needs. We’re passionate about finding talent. We’re here to help you make the most of this disruption with the best suite of recruiting strategies for your company. Contact us today.