Knowledge is power. And that’s exactly why we create an annual Hiring & Salary Guide for employers – to share our expertise with you! We gather insight from our in-house recruiting team and poll our network of hiring managers, and then we use this collective feedback to create a guide that accurately represents today’s hiring environment.
Below are four of the seven trends that are included in our 2020 Hiring & Salary Guide. Check them out, and then contact your local office to receive your FREE copy to read all seven trends and see salary data for your industry and market.
2020 Hiring Trends
The demand for jobs continues to exceed the supply of workers, and employers are feeling the crunch! In July 2019 alone, the number of job openings in the U.S. was at 7.2 million, yet only 6.0 million of those jobs were filled. The job market is tight — there’s no denying that. To compete, companies need to implement effective recruiting strategies and develop a culture that makes their current workforce want to stay.
There are a number of factors that impact employment: economic changes, technological advances, and generational differences, to name a few. Take note of how these factors play into the following hiring trends.
Trend #1: An “Always Recruiting” Mindset
The number of employees quitting their jobs is at an all-time high. The quit rate (the rate at which employees voluntarily leave their jobs) is at 2.3 percent – the highest it’s been in 15 years (Bureau of Labor Statistics, September 2019).
With this in mind, rather than posting a job every time a role needs to be filled, companies are continuously monitoring and providing employment opportunities to qualified candidates. This may include setting up active employee referral campaigns, developing employer branding to differentiate from the competition, maintaining communication with candidates who have expressed interest in the past, and/or partnering with a reputable staffing agency.
Trend #2: Relaxed Hiring Criteria
U.S. job openings hit an all-time high in 2019, resulting in a talent shortage (U.S. Labor Department). In response, many companies have adjusted education and/or experience requirements in an effort to widen their talent pools.
If you’ve considered relaxing your hiring criteria, consider these steps:
- Review the job requirements. Separate out your “must-haves” from your “nice-to-haves,” and use this information to rework the job description.
- Document the reasons for the change for internal tracking purposes and to protect the company from potential legal concerns.
- Reevaluate the interview process. A change in job requirements often means a change in how you screen and filter applicants, including the interview questions you ask.
- Look into skills assessments. If a job no longer requires a degree, yet certain skills are necessary, include a skills-based assessment in the interview process.
- Track your candidates to make sure the quality of talent isn’t affected by any changes. If you don’t see improvements in the quantity of applicants, make further adjustments.
Trend #3: Same-Day/Week Hiring
Top talent are off the market in just 10 days, yet the average interview process is now clocking in at nearly 23 days, up from 13 days in just under a decade (Glassdoor). To speed up the hiring process, many companies are now making job offers the same week as the interview, and some are even committing to same-day hires.
If your organization is unable to reduce the time-to-hire, every effort should be made to keep candidates informed and engaged throughout the process. If not, they will look into other options and lose interest.
Trend #4: Compensation Planning & Adjustments
The Society of Human Resource Management recommends conducting a compensation review at least every three to five years to ensure wages align with the company’s needs and the labor market. Companies that regularly review their pay structure are better positioned to catch issues before they affect employee engagement and the organization’s ability to attract and retain talent.
If your company’s salaries have remained stagnant over the past few years, you may need to increase pay at a higher rate just to catch up. If your budget doesn’t allow this increase, establish a compensation plan where you offer incremental increases over a period of time. For example, give employees a pay raise every six months until their salaries fall within industry standards. If you go this route, be transparent and share the compensation structure and goals with your team.
Get Your Copy of Our 2020 Hiring Trends & Salary Guide
Contact your local office to get a printed copy off all seven trends and 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!