In today’s job market, candidates currently have more power and advantage in the outcome of employment than the companies looking to hire them…and they know it. This is not a position that employers are used to being in, or want to be in, when it comes to properly staffing and running a business. It’s a fact that hiring today is tough, but why?
Well, since you asked, here are the 3 reasons why hiring today is tough.
1. Remote Work
Workers have been asking for remote and hybrid work options for years, with little success. Then the pandemic comes along and employers encouraged workers to work from home for the sake of the business. Post pandemic, employers now want workers to return to the office, no longer believing that remote work is viable. Naturally, this has upset and annoyed many workers, especially those who have become used to being home for dinners, being able to spend more time with family, and have more flexibility in their workday. Many of those workers refused to come back, even quitting in the face of the mandate and holding out for a remote option elsewhere. To overcome this issue, employers should consider remote or hybrid work options to attract new job seekers and existing employees who are holding out.
2. Worker Shortage
Another factor affecting hiring are the workers who haven’t returned to the workforce at all. As of today, there are 1.7 jobs for each 1 available worker, and is caused in part by workers who retired early, those who saved enough money to take extended leaves of absence from the workforce, and those who found ways to work part-time or start their own businesses (ie, contractors, gig workers, and entrepreneurs). This has hit hiring because the workers simply aren’t there anymore. Employers should consider offering flexibility, evaluating pay and benefits for competitiveness, and remote/hybrid options to entice workers to return to the workforce, however time may be the only true factor here.
3. Increased Self Worth
In the past 3 years, workers have found greater self-worth than they previously had. After years of layoffs due to economic fluctuations, resulting in financial and family disruptions and causing chaos for workers, they are hesitant to return to employers who laid them off or join those who have a history of layoffs. Higher salaries and titles (even over inflated ones, in both scenarios) have caused workers to question their existing situation, and job seekers to hold out for more money and/or title increases, whether warranted or not. Employers may need to re-evaluate the demands and expectations of the role(s) to become more attractive to job seekers when hiring, and to retain existing workers.
Waiting around for the limited pool of job seekers to actively seek out your job opportunity and apply is not exactly a solution. Neither is throwing money around for the sake of hiring. Doing your due diligence on the job market, the salaries and benefits offered for your open positions, and flexibility may be required. Additionally, working with recruiters who have existing relationships with workers, and who proactively contact passive job seekers, is a solid solution for getting interested, qualified candidates.
Good Luck, and Happy Hunting!