With unemployment still above pre-pandemic levels, finding and attracting talent seems like it should be easy.
But counterintuitively, we're currently in a candidate, not an employer, driven market. And it appears employee leverage will continue to grow past-pandemic.
In this newsletter, we look at the forces creating this labor market paradox and what employers can do to overcome it.
Labor Market Paradox
High tide only raises some boats. Unemployment is still 2.5 points higher than it was in February 2020, yet many employers are struggling to find workers. There are several factors at play.
Hybrid expectations. What are workers looking for in their next role? Remote work is their top priority. In a survey conducted by Envoy, 47% of respondents said they'd leave their job if not offered a hybrid option. And 41% said they'd take a slightly lower salary if offered a hybrid arrangement.
A bigger safety net. By the end of last summer, the average household bank account held 40% more money than it did the year before. This stability has led to a more selective workforce and surprised industries that typically see an influx of workers during a recession.
Increased competition. According to Indeed, job postings aren't just back to pre-pandemic levels, they're nearly 20% higher. This surge of open positions gives job seekers their pick of the litter when it comes to roles.
Upcoming reshuffling. As we've previously discussed, a tidal wave of talent appears to be on the post-pandemic horizon.
Voluntary turnover is expected to skyrocket in the second half of 2021. More than half of workers plan to look for new jobs this year. And a quarter plan to leave their jobs outright when the dust settles.
Emphasis on the voluntary. Expect employees to leverage their position in the increasingly candidate-driven market to wait for the right opportunity to come their way.
So what can employers do differently? Employers are at a disadvantage. To attract candidates, employers will need to re-strategize their approach:
Cast a wider recruitment net. Many workers are looking at new industries and new locations. As an employer, now is the time to look outside of your local industry talent pool. What skills from other sectors are transferable to your line of work? What new places can you look to find new talent?
Think differently about compensation. Although pay plays a key role in attracting new talent, it is only one aspect of a compelling employee experience. Think holistically about what you offer and how you can highlight your strengths and reframe your weaknesses.
Offer hybrid if possible. According to ZipRecruiter, only 1 in 10 current job postings include "remote" in their descriptions. Yet, it's the top benefit job seekers are looking for right now. Offering a hybrid arraignment will make your open positions stand out from the crowd.
If you can't offer hybrid work, consider how else you can add flexibility to your roles. While hybrid and remote work are preferred, they are part of a larger focus on work-life balance. In one recent study, poor work-life balance was more of a deal-breaker than lower pay.
Bottom line: Despite record unemployment and an upcoming reshuffling of talent, many employers will struggle in 2021 to attract workers. The answer to this labor market paradox? Valuing flexibility as much as job seekers do.
What Else Caught Our Eye This Week
Purpose-driven attention. "Even though an organization may have a purpose statement, it's irrelevant if all a leader calls an employee's attention to is the bottom line." An insightful piece from Emotional Intelligence author Daniel Goleman. Read.
Independent workforce. A recent survey from PeopleScout suggests the most in-demand skillset post-pandemic will be autonomy. In the hands-off environment of hybrid work, self-reliance and resilience will be invaluable team assets. Read.
LinkedIn gaps. The platform is planning several new features to make rejoining the workforce easier, including no longer requiring an employer for resume entries and new employment gap types, such as parental leave and sabbaticals. Read.
Cybersecurity is a people problem. Movies love to depict hackers hacking away at their computers to break through firewalls and into mainframes. In reality, most corporate hacks happen when employees drop their guard and "click here." Read.
An ounce of prevention. Recovery from burnout is a personal process; there's little employers can do to pull an employee out of it. But there is plenty that employers can do to prevent it in the first place. And it's well worth the investment. Read.
Talent Watch
We lead searches for a variety of positions for a variety of organizations across a variety of industries. Check out our most recent open searches below, and share them with your network.
Development Director, Meals on Wheels Western Michigan. More.
Chief Executive Officer, Five Healthy Towns. More.
Business Development Specialist, The Right Place. More.
Accounting Manager, Monsma Marketing Corporation. More.
Additional Resources
[Webinar] Attracting and Retaining Talent. April 20, 12-1 pm. Our own, Jon Brickner, will provide practical strategies and advice on rethinking talent post-pandemic. Approved for 1 SHRM and HRCI continuing education credit. Register.
Combating Anti-Asian racism. Looking for help addressing Anti-Asian racism in the workplace? This comprehensive resource list can help leaders educate others, take action, and more. Explore.
[eBook] Work Better Together While Officing Apart. Has your work culture taken a hit since going virtual? Check out this free eBook from Everything DiSC® for three simple steps you can take to reconnect your virtual workforce. Download.
Elevate your HR. Ready to go from transactional to transformational but not sure where to start? Find out where your people operations excel and receive a roadmap to improve the areas holding you back with an HR Discovery. Contact us.
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Disclaimer: We're a team of HR experts. By no means are we legal experts. This newsletter isn't intended to contain legal advice. Please, consult your attorney for that.
HR Collaborative, 678 Front Ave NW, Ste 190, Grand Rapids, Michigan 49504, 616.965.7860
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