Even with layoffs in some sectors including tech, the job market continues to be robust for workers looking for – and landing – new positions. Over 500,000 jobs were added in July and unemployment is low at 3.5%.
David Ishida and Karli Dixon of North Bridge Staffing Group have been expertly guiding hiring managers and candidates throughout The Great Resignation. They recently shared their insights about the top hiring trends they see this fall and into 2023.
“It’s a good time to be a candidate, and we expect increased hiring to go through 2022.”
David Ishida, Account Executive, North Bridge Staffing Group
Flexibility
When COVID-19 sent most employees home in 2020, almost no one could have predicted the seismic impact working from home would have on hiring.
“Two years ago, candidates didn’t even think about bringing up working from home,” says Dixon, a recruitment director based in Chicago. “Now, people will turn down amazing job opportunities if they require five days a week in the office. Even just one day a week is really important to people who value work-life balance.”
Companies that have returned to pre-pandemic schedules requiring employees to work traditional hours in the office are struggling to hire. Ishida, an account executive also based in Chicago, says resistance to hybrid or remote schedules usually comes from the C suite, not from hiring managers who are working hard to attract talent.
Saving money on commutes and lunches add up, and many times candidates will accept less pay if it means they can work from home some or all of the time.
Inflation-proof salaries
Increased pay has always been a motivation for employees to switch jobs, but in today’s market, it’s an even bigger draw. A new study by Pew Research Center shows that 60% of workers who switched jobs between April 2021 and March 2022 earned more money from their new employers, which is helping employees keep up with rising inflation.
To retain employees and attract talent, some companies are increasing their budgets for employee compensation or offering stimulus payments to ease the financial burden of inflation for their workers. Isihida says that more of his clients are showing flexibility on salary to help them attract and hire top-tier employees.
Housing challenges
The limited inventory and high cost of housing is impacting hiring, especially in situations where candidates are relocating at their own expense. Dixon recently worked with a candidate who had to delay their move to New York City – and their start date – because they couldn’t find housing.
Direct hiring
“Before the pandemic, companies would work with a staffing firm to hire on a temporary or contract-to-hire basis,” says Ishida. “We’re now seeing a lot more direct hires that provide immediate employment on Day One.”
Direct hiring eases concerns about inflation and a possible recession for candidates and helps employers compete for talent.
Streamlined interview processes
Employers used to have more control over the interview process, including the number and pace of interviews as well as salary negotiations. Now, being more flexible and moving through the interview process more quickly – conducting two interviews in one week, for example – is helping companies fill positions more efficiently.
Compelling job descriptions
Minimal job descriptions that are boring and don’t describe a company’s values hinder the hiring process. Candidates want to see an engaging job description that includes opportunities for growth, intrinsic benefits, and most importantly, the pay range.
“When hiring companies don’t include the compensation on a job posting, they will get fewer applicants,” says Dixon.
Including the pay range on a detailed, one-page job description saves candidates, hiring managers, and recruiters a lot of time. Often, candidates want to know what the compensation is before learning more about the role.
New definition of “culture”
Employees aren’t the only ones saving money by working at least part of the time remotely. Companies are saving money on rent and supplies by downsizing office space, and in the process, culture is being redefined.
Increasingly, culture is less dependent on fancy offices with fully-stocked kitchens and TVs on vibrantly-painted walls. Candidates are evaluating a company’s culture based on whether its values align with their own to ensure a good fit.
Allowing employees to work from home is another way companies are defining culture, as well as providing resources like back-up childcare.
“It comes down to leaders who trust their employees,” says Dixon.
“It comes down to leaders who trust their employees.”
Educating candidates and hiring managers
Dixon says an important part of her job is coaching candidates to have realistic expectations for compensation and responsibilities as they consider new roles. She also helps them navigate different industries and opportunities for growth unique to each sector.
Educating hiring managers is critical, too. Ishida says that for some clients, hiring makes up for only 5-10% of their job, and they rely on a high-quality staffing company to keep them up to date with current trends.