To remain competitive in today’s talent-driven market, successful employers understand these five hiring trends and have identified creative ways to adapt:
TREND 1: Skilled talent are in short supply
The days of posting a job and filling it within hours or days have come and gone. Today, the demand for many skills far exceeds the supply. Older workers are retiring in large numbers with fewer younger workers to replace them. And the US unemployment rate continues to fall; it hit a 49-year low in September 2018.
Economists predict that the labor market will continue to tighten. A study by Korn Ferry estimates that the worldwide talent shortage will reach about 85 million people with needed skills by 2030, resulting in as much as $8.5 trillion of unrealized revenue ($1.7 trillion in the US, equivalent to 6 percent of the US economy).
TIP: Update your employee referral program. SHRM research shows that referrals are more effective than job boards to find and hire applicants. If your referral program isn’t resulting in successful hires, it’s time to revisit.
TREND 2: Online reviews are impacting recruiting
Job seekers can readily access information about your company on Glassdoor, Indeed, and other employer review sites, and many candidates refuse to work for an employer with negative reviews.
TIP: Appoint someone to manage your online reputation. Work to improve your employer brand and increase your company’s visibility to candidates by:
- Making sure employees know that they can safely share their concerns with you in person rather than online
- Reading online reviews and using this information to improve your company
- Monitoring and responding to positive and negative comments
- Encouraging your employees to leave a review
TREND 3: Candidates are turning down (or not responding to) job offers
Hiring managers are seeing more rejected job offers than previous years. The most common reason that a candidate turns down a job is an offer from another company. During a lengthy hiring process, candidates look into other options and lose interest.
TIP: Be decisive. Time is the fastest way to kill a deal. If you find a candidate who meets or exceeds your expectations, put a job offer together quickly. Good people are in high demand and will move fast.
TREND 4: Wages continue to rise
US salary budgets are projected to rise by an average of 3.2 percent in 2019, up from an actual year-over-year increase of 3.1 percent for 2018, according to a WorldatWork Salary Survey. Many employers are offering competitive wages as a tool to retain and attract workers. Online retail giant Amazon raised its minimum wage to $15 per hour for US employees in November 2018.
TIP: Make data-driven wage decisions. Use market data to get an idea of what your competitors are paying. Also look at local supply and demand for the positions you need to fill, and adjust pay rates accordingly.
TREND 5: Turnover is at an all-time high
Voluntary separations continue to rise. While many studies report that most employees leave their jobs for better-paying positions, a Work Institute report showed that career development opportunities, work-life balance, and poor management are consistently the real issues that spur employees to leave.
TIP: Engage to retain. With a limited supply of talent, it’s important to keep the people you already have. To reduce turnover:
- Meet regularly with employees to discuss career paths
- Hire and promote from within
- Offer professional development opportunities
- Recognize employees’ efforts (a simple ‘thank you’ goes a long way!)
Get Your Copy of Our 2019 Salary Guide
Contact your local Digital People office to get a printed copy of these trends plus a custom salary guide for your area and industry. We can also provide personalized hiring advice catered to your specific challenges and needs. We look forward to helping you!