The Great Rebalance
Over the course of the last 5-years, we have experienced a whirlwind in Twin Cities when it comes to hiring. From 2017 through 2019, we started to experience this concept of “unemployeement,” that’s correct, unemployeement is not unemployment. “Unemployeement” or shortage of workers is based on the German word “Arbeiterlosigkeit,” coined by Stepstone CEO Sebastian Dettmers. The lead-up to the COVID-19 Pandemic was filled with record-low unemployment rates of the low 3% and historical labor force participation rates, which, for those who are reading this and were in positions of hiring during that time, was difficult. It was difficult to find the right talent, it was difficult to know what wages were fair, and all in all, it felt like a “war for talent” at times.
Then in March 2020, the world was hit with a whole new issue of worldwide uncertainty. The pandemic resulted in a drastic shift in the Twin Cities job market, where companies had to furlough or lay off their employees suddenly, where unemployment rates were akin to that of the Great Recession. Then fast-forward a few months from the national stay-at-home orders, we were met with the whiplash of ultra-low unemployment coupled with a 50-year low participation rate of working-aged individuals. Then, the war for talent broke out again but with more dire circumstances.
The “unemployeement” of 2019 had not completely been realized until the post-COVID-19 outbreak. The pandemic ultimately accelerated the path we were already on in the Twin Cities labor market. The pandemic has served as an agent of change, setting the stage for what could be the next 3-years of hiring. Companies now had to compete over a much smaller labor force while also having to fulfill record high demand for goods and commodities. Businesses had to find ways to compete for talent, resulting in increased wages, signing bonuses, and more, which has been fully realized through inflation.
The Twin Cities job market has been in flux for the last 5 years, but it is one that is full of opportunities. The pandemic has only served to accelerate the already existing trends, and businesses must be prepared for whatever comes next to find success in their hiring. As we all cautiously lead into 2023, the coined phrase “The Great Rebalance” of hiring has begun. What we have known as an employee market for the better part of the last two years is subtly shifting to where employers have some control. And we use the phrase “employers have some control” advantageously because the challenges are the same but different, which we will discuss throughout the course of this article.
The key takeaway is that while still challenging, the Twin Cities job market has become much more fluid in a post-pandemic world. Employers must be prepared to adapt and change to succeed in their hiring endeavors, no matter what comes next. The war for talent is still on, and those who are prepared will find success. It is mission-critical that businesses know how to position themselves to stay ahead of the competition when it comes to talent. With the right strategy and information, businesses can ensure that they are on their way to becoming employers of choice in the Twin Cities job market.
What Will The Future of Hiring Look Like?
We are going to methodically back into current hiring trends along with things you can do from a recruiting perspective by starting with a deep look into the overall future of hiring. This is an easier way for us to show our “math” on how we got from point A to point B. We believe this perspective will ring true for the long term and in the near months to come.
This is how we come back to our earlier phrase, “employers have some control,” with the keyword being “some,” in the future of hiring in the Twin Cities. If you are unfamiliar with the word “Sansdemic,” it is a word coined for the new normal that has developed in today’s job market. The word simply means “without people” or “without enough people.” The Sansdemic reflects the combination of pre-pandemic, pandemic, and post-pandemic trends that employers now face. To put it even more simply, there are more open jobs than there are people to fill them—or people who are willing to fill them.
As we talked about in the introduction, Sansdemic was a path that we were already not just locally but globally, and the Pandemic kicked it into overdrive. There are three parts to this cycle that have quietly been forming for decades but are now being put into full swing. They are; lower birth rates, increased retirements, and a significant decline in the labor force participation rate.
1. Low Birth Rates
The first part of the cycle is lower birth rates. Since the explosion of the births of the baby boomers in the mid-1940s to early 1960s, birth rates have been steadily declining. This is a trend that has been seen not just in the US but also in most developed countries. The average number of baby boomers born was 4.3 per woman, but now that number is hovering around 1.6 per woman in the US, with most other developed nations following suit.
The trend of low birth rates can occur for various reasons, such as decreased fertility rates, changes in societal attitudes toward having children, economic factors, or a shift towards urbanization and smaller living spaces. As a result of fewer people being born, fewer people are entering the workforce and available to be hired.
2. More Retirements
The second part of the cycle is an increase in the retirement rate. The consequence of having lower birth rates is met head-on with an increase in the retirement rate. Baby boomers are now retiring at a faster rate than what is being replaced by younger generations. The rate of retirement has increased from under 10% in the 1990s to around 15-17% today and is projected to continue to rise. This means that for every one person that is entering the workforce, there are 1.5-1.7 people leaving it.
What complicates the issue even further is that the retirement age has been steadily increasing since the mid-1980s, meaning that more people are staying in the workforce longer. This is great news for employers who will be able to benefit from their experience and knowledge, but it also means that those jobs will be filled for longer, potentially limiting the amount of new talent that can enter the workforce.
3. Decline in Laborforce Participation
The last part of this cycle is a significant decline in labor force participation. This means that fewer people are actively seeking or participating in the job market. This can happen for a variety of reasons, such as an inability to find work that matches their skill set, students opting out of the workforce to pursue higher education, or people taking a break from work to care for family members.
An unforeseen consequence of the COVID-19 pandemic was the significant impact on labor force participation. Many workers have left the workforce due to health concerns or caregiving responsibilities, particularly women and men ages 24-34, who have been disproportionately affected by the pandemic. This fascinating shift in labor dynamics has been influenced by a growing trend amongst young men, who opt to stay with their parents without a college degree and do not prioritize formal employment. Adding to this intriguing landscape is the emergence of the gig economy, where individuals combine multiple short-term, contractual jobs to earn a living. This innovative employment structure often eliminates the desire for many to return to conventional full-time positions, creating an ever-evolving labor market.
Becoming a Culture of Choice
As the three parts of this cycle come together, employers are facing an increasingly difficult task of finding the right people to fill their open roles. To move beyond the cycle of low birth rates, increased retirements, and declining labor force participation, employers must focus on becoming a culture of choice. This means creating an attractive workplace for job seekers.
Creating an environment where your organization is considered a “Culture of Choice” extends far beyond competitive salaries and attractive job postings; it is deeply rooted in cultivating a culture that demonstrates genuine appreciation and respect for its employees. As experts in the field of workplace dynamics, we understand that becoming a culture of choice requires conscious efforts to foster a positive work atmosphere where employees feel valued, inspired, and connected to the organization’s mission. Establishing such a culture bolsters employee loyalty and productivity and naturally attracts top talent, enabling your business to thrive and continue its upward trajectory.
We see successful businesses effectively position themselves as an employer of choice by cultivating a culture of inclusivity, transparency, and open communication, where employers can express genuine respect and appreciation for their team members. This results in improved collaboration, innovation, and company growth. Businesses can effectively leverage each team member’s unique talents and experiences by fostering a workplace where diverse perspectives and ideas are valued. Open dialogue empowers employees to feel respected, appreciated, and motivated to contribute meaningfully to their organization’s objectives.
By fostering a culture where employers acknowledge and appreciate the contributions of each team member, they facilitate an ambiance of trust, camaraderie, and profound loyalty. These qualities equip businesses to navigate volatile market scenarios with agility and resilience while capitalizing on emerging opportunities. Ultimately, employers that prioritize becoming an employer of choice are better positioned to attract and retain the best talent, reduce turnover costs, and increase overall productivity.
Recruitment Versus Hiring
As the hiring market continues to evolve along with the labor force dynamics, employers must be mindful of the distinction between recruitment and hiring. Recruiting and hiring are two terms often used interchangeably, but they actually refer to different aspects of finding and selecting new employees for a job.
Recruiting refers to the process of identifying and attracting potential job candidates to apply for a position within an organization. This can involve various methods such as headhunting, employee referrals, networking, and using recruitment agencies. The goal of recruiting is to create a pool of qualified candidates who are interested in the job and are willing to undergo the hiring process.
Hiring, on the other hand, refers to the process of selecting the best candidate from the pool of applicants generated during the recruiting process. This involves reviewing resumes, conducting interviews, and assessing the candidates’ qualifications, skills, and suitability for the job. The goal of hiring is to choose the most qualified candidate who will meet the organization’s needs and contribute to its success.
In today’s rapidly changing business climate, the hiring landscape has shifted to what is known as a Sansdemic world – where businesses must constantly adapt and innovate to remain competitive in the new normal. Employers must embrace forward-thinking talent acquisition strategies to optimize their processes and ensure they attract and retain the best candidates in the market. Gone are the day of waiting for people to apply for a job posting. Employers must take a proactive approach to meet their talent needs. The employees you want are not actively looking for jobs. The business’s approach needs to go far beyond paying the most and having the most Indeed job postings; it will be about adopting a recruiting approach that involves targeting candidates and actively engaging with them through diverse methods such as employee referral programs, digital recruiting strategies, and even creating online communities to build relationships.
What’s Happening in the Twin Cities Talent Market?
Alright, we can put away our crystal ball as we took a significant look into the future of hiring and some of its associated hurdles. But what’s currently happening in the Twin Cities talent market?
This is where we are starting to see what we call “The Great Rebalance,” where local businesses now have somewhat of an upper hand in the hiring process, an advantage that has been quite elusive in recent years. Indeed, the keyword here is ‘some’ latitude, but it’s a tectonic shift nonetheless. Twin Cities employers are subtly regaining control and overcoming hiring challenges.
Employers recognize the value of hiring the right people with a range of skills and experiences for their business as opposed to hiring just anyone. There’s a growing realization that it is essential to invest in quality talent acquisition and retention strategies, embrace diversity and inclusion as part of their culture, to amplify their recruitment processes.
While the talent market is still highly competitive, hiring decisions are becoming increasingly important; there are a few local trends that we are seeing in the Twin Cities hiring Market.
Manufacturing and Warehousing
The Twin Cities is truly its own microcosm of the larger national job market. Over 2022, many industries experienced an unfathomable uptick in demand, leading to record-setting unemployment rates and a robust hiring boom.
The two industries that were benefactors of this surge in demand were Manufacturing and Warehousing. The demand for manufacturing and warehousing talent over the last few years is due to the ongoing shift in consumer spending patterns. With more consumers buying online, the demand for these specialized skills has increased significantly, creating a surge in job openings.
This resulted in employers being forced to be more open-minded about the type of skills and experience they were looking for in candidates. Employers began looking for candidates with the right attitude and aptitude to fulfill these roles, even if they lacked some of the specific technical skills.
At times we were experiencing upwards of 3 job openings for every unemployed candidate. With the Federal Reserve imposing a tapering of rate hikes over the last 9 months, many employers are taking a more strategic and thoughtful approach to hiring. As we come to a close to Q1, the U.S. Bureau of Labor Statistics reported in the Job Openings and Labor Turnover Summary that there are about 1.9 open industrial jobs for every unemployed worker.
As the Twin Cities manufacturing and warehousing market is starting to stabilize, we are starting to witness some key trends in each of these respective industries;
Key Warehousing Trends
The pandemic has undeniably had a transformative impact on various industries, with warehousing employment emerging as a particularly dynamic sector. During the initial stages of pandemic recovery, warehousing took the lead in the labor market, boasting substantial job creation that made a lasting impression. This can be attributed to rapid shifts in consumer demand incited by the changing landscape of the global economy.
As we cautiously ease our way into 2023, we are starting to feel the influence exerted by the Federal Reserve. As we move forward, we have observed a tapering of hiring rate hikes, causing warehousing hiring to either remain stable or experience a slight contraction. Consequently, although it seems that warehousing employment may have reached its zenith in 2022, it is unlikely to see the historic gains made in 2020 through 2022 anytime soon.
Key Manufacturing Trends
Hiring professionals in the manufacturing sector has been through a lot since the pandemic. Labor demand has nearly doubled where it was two years before must feel like whiplash, where it was mission-critical to keep up with production demand. This ultimately forced businesses to make hiring decisions with candidates that didn’t quite meet the standards they would have normally set.
Unlike warehousing, the manufacturing sector is minutely softening; we are still seeing a flurry of activity, with manufacturers adapting to changing consumer demand. We are seeing a strategic shift in hiring manufacturing talent across the board, where it is no longer about needing 5 individuals with the same skillset but rather finding 2 talented individuals that can bring a unique combination of aptitude and technical skill. As we round off the first quarter, we anticipate that this trend will continue throughout 2023 and beyond.
Overall, the Twin Cities job market continues to exhibit signs of strength and resilience as we move into 2023. Despite some slowdown in hiring in certain sectors, there is still a significant amount of opportunity for job seekers with the right skills and qualifications. With the Federal Reserve making decisions to keep the market stable, there is some stability for employers in the near future. Job seekers who are prepared with the right skills and qualifications will make the most of this opportunity, while employers must also remain vigilant in their recruitment efforts to ensure they are hiring the right candidates to help their businesses succeed.
The Cold, Hard Consequences of Job Hopping
Ah, remember those delightful days of sifting through countless resumes only to find candidates with the dizzying job-hopping history of a 100-meter hurdler? Fear not, for it seems the era of the reluctant hire may be drawing to a close! That’s right, no longer must you fret over whether the constant changing of jobs was due to a thirst for adventure, sheer indecisiveness, or a latent fugitive on the run. As educational and humorous as those discussions were, the job market is evolving, and trends indicate a more stable and committed workforce is on the horizon. So breathe a sigh of relief, and get ready actually to form a long-lasting rapport with your team!
With the economy and job growth slowing down, employers now have the leverage to demand more from their employees. They increasingly expect a candidate to have a more consistent work history and to stay with a single employer. Job hopping has become less desirable, as employers are now more likely to hire someone who demonstrates commitment, loyalty, and stability.
This shift in hiring preferences is particularly noticeable with millennials, who are often seen to have high job-hopping tendencies, where they have been chasing the almighty dollar. This means that chronic job hoppers are likely to face more serious consequences in the job market, while those who have shown stability with one or two employers will be rewarded.
We are seeing that our clients in the manufacturing sector have taken notice of such trends, and many are now more mindful about constructing roles for employees that offer long-term career growth opportunities. This means that job seekers need to look at their careers with more foresight and develop a long-term plan before taking any job. The upshot means that job seekers need to be prepared to show employers the skills they possess and their ability to commit to a role long-term.
This shift is a sign that the job market is maturing, and employers are becoming more astute in their hiring practices. Those who can demonstrate commitment and loyalty to their employers and possess the aptitude and technical skills for the role will be rewarded in the job search. As a result, this will allow businesses to cultivate a “culture of choice” that fosters innovation, collaboration, and success.
Wage Growth Leveling Off
For several years, the manufacturing and warehousing sectors have experienced a remarkable period of expansion, with a consistent increase in the demand for labor leading to significant wage growth. From 2019 to the end of 2022, the average growth in wages for an entry-level position was just under 12%. Historically the average wage growth over a three-year span is much lower, between 5-7%. Another way to look at this was that in 2019, an average entry-level warehouse worker was paid between $14 and $15 per hour. By the end of 2022, that same candidate was commanding between $19 to $20 per hour to perform those same job duties.
The incessant wage surge within these industries reflects the urgent need for workers in the face of consumer demands and the sheer shortage of workers, aka the Sandemic. However, recent trends indicate that this rapid ascent may be reaching a plateau, primarily due to inflation and curbed demand for any ordinary candidate. Now, with the Federal Reserve hitting the breaks on inflation and employers being more cautious in their hiring practices, which is ultimately resulting in a leveling off of wage growth. This slower growth is giving employers more control over their cost management, which means job seekers may find fewer opportunities within the wage ranges they believe they are qualified for.
Employers must constantly be vigilant in their recruitment strategies to secure the most talented and devoted candidates for their organization. A competitive salary is essential but not the sole factor ensuring a harmonious and successful employment relationship. In addition to financial compensation, organizations must consider the intangible aspects of the employment experience that contribute to an employee’s loyalty and dedication. Factors such as organizational culture, work-life balance, and overall job satisfaction play a pivotal role in attracting and retaining top talent. A workplace that fosters collaboration, promotes mutual respect, and values individual growth will more likely appeal to skilled professionals, ultimately leading to a more committed and productive workforce.
What Does This Mean for Recruiting and Hiring?
As we talked about what the future holds and what we are currently experiencing, we hope you can start to get a feel for the “some” control businesses are gaining back in the hiring market. With that said, according to all available data, it looks like candidates will continue to have the advantage for years to come. This is largely due to a greater number of job openings than job seekers available to fill those roles.
Ultimately, employers need to provide job seekers with meaningful and rewarding employment experiences to attract the best talent. Companies should also invest in their recruitment strategies and tools to find, hire, and retain the right people. Employers can create an environment that attracts the most talented and dedicated professionals by developing a comprehensive strategy that includes strategic compensation, attractive benefits packages, and a culture of choice. This not only helps to create and maintain a motivated, successful workforce but also encourages employees to stay with the organization for an extended period of time.
Employers can create more effective recruitment and hiring strategies by understanding current and future job market trends. While wages may have plateaued, employee engagement and satisfaction should remain paramount within an organization. With the right approach, employers can secure top talent and create a dedicated workforce that will propel them to success.
While it may feel okay to become complacent with an approach to hiring in uncertain times, it is important to remember that job seekers are still in control of the market balance. Employers must remain vigilant in their efforts to attract and retain the best talent to ensure long-term success. We have four key hiring recommendations that can aid any organization in hiring the right people and creating a successful team:
- Hire for the Future, Not for Today
- Experiment with Headhunting
- Upgrading Your Existing Talent
- Always Be Improving Communication
1. Hire for the Future, Not for Today
In the midst of overwhelming uncertainty in the financial markets, it can seem inconceivable to shift our focus away from present concerns and start planning for the future. However, as counterintuitive as it may appear, turbulent times present a unique opportunity for companies to reassess and prioritize their talent acquisition strategies for long-term success.
By looking beyond immediate challenges and anticipating future needs, organizations can attract and retain the right talent to navigate the evolving landscape, adapt to unexpected changes, and ultimately thrive in the face of adversity. Therefore, even in times of uncertainty, it is imperative to prioritize strategic hiring decisions and invest proactively in building a strong foundation for the future success of your business.
Hiring for the future is important because it ensures that a company has the right talent in place to achieve its long-term goals and remain competitive in an ever-changing business environment. Here are a few reasons why it is important to hire for the future, not just for today:
Business Needs Are Continuously Evolving
Businesses are constantly evolving, and the skills and expertise needed to succeed today may not be the same as those needed in the future. Hiring for the future means looking beyond current business needs and anticipating future needs to ensure that the company has the right talent in place to address those needs. This level of foresight can serve as a pivotal change in safeguarding long-term growth and success, as it enables companies to make strategic moves and assemble a workforce suitable for forthcoming exigencies. Thus, to effectively steer through the labyrinth of the ever-changing market, businesses must prioritize anticipatory measures and adopt a proactive approach towards securing the human capital necessary for navigating a rapidly evolving market.
Creating a Competitive Advantage
Hiring for the future can give a company a competitive advantage. By identifying and hiring individuals with skills and expertise that are in high demand or emerging, a company can position itself to lead the way in its industry and stay ahead of the competition. This forward-thinking approach can help an organization differentiate itself from its competitors, making it more attractive to potential employees and customers.
The concept of cost-effectiveness plays a crucial role in today’s highly competitive and dynamic business landscape. Investing in hiring practices that focus on the future can significantly contribute to an organization’s cost-effectiveness in the long run. By strategically recruiting professionals with diverse skills and expertise, companies are better equipped to adapt to ever-changing market demands and evolving industry trends.
This approach not only streamlines a business’s operations and increases its agility but also minimizes the constant need to recruit new talent when fresh skill sets are required. In turn, this cost-effective hiring strategy fosters a more sustainable and resilient workforce poised to tackle future challenges and drive the company towards long-term success.
Increased Employee Retention
Organizations can enhance their employee retention rates by committing to a forward-thinking approach in their recruitment and development strategies. By investing in the growth and development of their employees, employers can create a sense of loyalty and satisfaction among their staff members. This ultimately results in longstanding employee relationships that benefit the individuals and contribute to the organization’s overall success. In essence, fostering an atmosphere where individuals believe that their professional ambitions are aligned with their company’s long-term vision is an effective way to reinforce employee retention and continuity.
No matter how uncomfortable it may feel to assess your talent acquisition strategy in the face of uncertainty, ensuring that your company has the right people in place for long-term success is essential. By investing time and resources into hiring for the future, organizations can create a competitive edge and remain successful even during turbulent times.
The best way to approach recruitment and hiring in uncertain times is by focusing on creating the right environment for your employees and investing in the development of their skills. By understanding your business needs and hiring people with the potential to become future leaders, you can create a sustainable competitive edge that will keep your company thriving even in times of change.
Remember, although it is essential to have an effective hiring strategy in place during uncertain times, it is also important to be flexible and open to change when needed. By taking a proactive approach to talent acquisition and focusing on the future, you can ensure that your company will remain successful in the long run.
2. Experiment with Headhunting
As we look at the potential of a recession, it will, without a doubt, increase the unemployment rate in Minnesota. As we write this article, the state’s unemployment rate is hovering around 2.8%, an uptick from 1.7% in Q3 of 2022. Nonetheless, this is still one of the lowest in the country. Looking back at 2018 and 2019, the Twin Cities metro area saw about a 3.7% unemployment rate with, at times, left the caliber of talent to be desired. Even if unemployment potentially hits the high 3% to low 4% marks, we are still going to experience a competitive landscape.
Why? Because in most scenarios, the individuals that are sitting on the proverbial sideline should beckon the question, “Why” due to what the overarching data tells us. Unemployment isn’t the answer or the only factor to consider when it comes to recruiting and hiring top talent. So, we strongly suggest that organizations experiment with different hiring channels; one specific option is headhunting.
If you’re not familiar with headhunting, headhunting is a strategic approach employed by organizations to attract top-notch talent in today’s competitive job market. With more than one in three recently hired Americans asserting that a potential employer approached them, it’s clear that this method is crucial for businesses seeking exceptional candidates. Rather than hoping that the perfect candidate will stumble upon your job posting, headhunting takes a proactive stance by actively searching for skilled professionals, contacting them directly, and inviting them to consider a position within your organization.
The power of headhunting lies in its targeted and intimate approach, allowing employers to truly understand and appreciate the value of potential employees while actively marketing their company as a desirable workplace. It demonstrates a commitment to excellence and a dedication to fostering growth within the organization, making it a leading method for acquiring top talent in today’s increasingly competitive job market.
However, headhunting can also be a complex and time-consuming process, as it requires extensive research and outreach to potential candidates. Establishing connections and fostering relationships with prospective talents requires a significant investment of time and effort that a business may not be willing to make on its own and may leverage an employment agency to help with this task. The key with headhunting is you are actively recruiting someone away from a job they are potentially not considering leaving. This means your value proposition needs to be strong and resilient: a winning combination of salary, benefits, opportunity, and company culture.
The good news is that headhunting, when done right, can be a great way to acquire hard-to-find candidates and create a competitive edge even during any market constraints. By taking a proactive approach in recruiting and focusing on the future, you can ensure that your company will remain successful in the long run.
3. Upgrading Your Existing Talent
Talent upgrading is a strategic recruiting and hiring approach involving identifying and replacing underperforming employees with higher-quality candidates. It is a proactive process that focuses on continuously improving an organization’s talent quality.
The methodology for talent upgrading requires employers to identify recurring issues, predict future needs, and develop a proactive plan to replace problem employees. The process of talent upgrading typically involves the following steps:
Identify underperforming employees:
The first step in talent upgrading is identifying employees who are not meeting expectations or underperforming in their roles.
Assess the current talent pool:
The next step is to assess the current talent pool within the organization and determine what skills and experience are needed to improve performance.
Recruit higher-quality candidates:
Once the organization’s needs have been identified, the focus shifts to recruiting higher-quality candidates with the skills and experience needed to fill the gaps.
Back in 2020, in the thick of the pandemic, this was one of our most significant recommendations. We understand that it may feel counterintuitive to replace existing employees. However, it is a necessary process to ensure success and foster a high-performing team. Most importantly, it allows you to continue to work towards becoming a culture of choice where you can attract and retain the best possible talent regardless of the market circumstance. There are several reasons why we recommend talent upgrading:
Improves overall performance:
Hiring higher-quality candidates can improve the organization’s overall performance. This can lead to increased productivity, higher levels of customer satisfaction, and improved financial results.
Higher-quality talent can bring new ideas, perspectives, and approaches to the organization, which can drive innovation and help the organization stay ahead of the competition.
Hiring higher-quality talent can also help to reduce turnover, as these individuals are more likely to be engaged, motivated, and committed to the organization.
Increases organizational capacity:
When organizations hire higher-quality talent, they increase their capacity to achieve their goals. This can help the organization to grow, expand, and take on new challenges.
Enhances employer brand:
Hiring higher-quality talent can also enhance the organization’s employer brand. This can help attract more high-quality candidates in the future and improve the organization’s reputation in the industry.
Overall, talent upgrading is key in recruiting because it helps organizations build a strong, talented workforce that can drive their success. By investing in talent upgrading, organizations can improve their overall performance, enhance innovation, reduce turnover, increase organizational capacity, and enhance their employer brand.
4. Always Be Improving Communication
The job market is constantly evolving, and hiring processes have become much more efficient in recent years. The latest data released by ZipRecruiter, a leading online employment marketplace, is a key piece of evidence supporting this fact. According to their findings, an astounding 90% of job candidates receive a response from their prospective employer within 2 to 3 days of submitting their application, while applicants expect communication within 24 hours. This means that employers must have the ability to react quickly and efficiently.
This indicates a significant shift in the dynamics of hiring, with employers now needing to prioritize a swift and decisive approach to filling available positions. This rapid turnaround time is crucial for job seekers and employers, as it allows both parties to align their goals and expectations more effectively and strengthens the overall quality and satisfaction within the job market.
As such, employers should always strive to be improving their communication with job candidates. Here are our four top recommendations on how any business that is hiring can improve its communication with potential hires:
The ever-evolving landscape of technology has opened up new avenues to simplify and enhance communication with job applicants throughout the hiring process. Adopting smart tools like applicant tracking systems (ATS) can significantly improve the efficiency of managing various modes of communication, including emails, texts, and calls. Automating these processes allows businesses to stay organized, save valuable time, and provide prospective candidates with a seamless, professional experience. This helps build a positive brand image and ensures that the company remains agile in capturing the best talent in today’s fast-paced job market.
Furthermore, implementing ATS empowers human resource professionals to focus on more strategic aspects while providing them the convenience of accessing key information about candidates with ease. By integrating technology into the hiring process, businesses can reinvent their approach to recruitment and communication, paving the way for a truly productive and successful work environment.
Personalize your communication
In the fast-paced world of job hunting, it’s easy for job seekers to feel like they are merely a number in an endless queue of applicants. To make your candidates feel valued and stand out from the competition, it’s essential to personalize your communication. By tailoring your messages, offering thoughtful feedback, and addressing their unique skills and experiences, you can significantly increase your response rate and foster a positive hiring experience. Moreover, building a meaningful connection with potential employees helps you assess their fit within your organization and paves the way for a successful and lasting professional relationship.
Follow up promptly
There is a vast difference between the talent you want and the talent you don’t want to work for your organization. The talent you do want is getting scooped up faster than you could ever imagine. A statistic from Indeed indicated that a highly qualified candidate will hear from a potential employer within 12 to 24 hours or less. The overarching message is to make sure you are responding to inquiries in a timely manner. This is important for job seekers and employers, as it allows parties to align their goals and expectations more effectively.
By not placing a high level of urgency on communication, a business inadvertently sends a negative message to potential candidates, signaling a lack of seriousness in the hiring process. This perception hinders a company’s ability to attract top talent and ultimately impacts the growth and performance of the organization. Therefore, timely and clear communication throughout the recruitment process inspires confidence in prospective employees and illustrates a company’s genuine commitment to building a strong and cohesive workforce. In essence, making communication, a priority reflects a business’s foresight and dedication to achieving long-term success.
Provide thoughtful feedback
The art of providing thoughtful feedback plays a crucial role in fostering a positive and constructive atmosphere during the hiring process. By engaging in open and honest communication, employers and job seekers alike can gain valuable insights into each other’s perspectives and requirements, promoting mutual understanding and trust. This exchange of information paves the way for clarifying and fine-tuning expectations, allowing both parties to align their goals and build a robust working relationship.
In addition, demonstrating a commitment to proactive feedback can enhance one’s reputation as a professional, fostering a culture of continuous improvement and growth that benefits the entire organization. In essence, thoughtful feedback catalyzes a transparent and efficient hiring process, ultimately paving the way for professional success and satisfaction for both the candidate and the employer.
Overall, to ensure a successful hiring process employers need to maintain open and consistent communication with job candidates. This means keeping them up-to-date on their application status, providing feedback on their qualifications and performance during interviews, and responding to any questions or concerns they may have throughout the process. Doing so helps to build trust and strengthens relationships between employers and job seekers, creating a desirable workplace where both parties can thrive.
What About a Recession?
We couldn’t write a 6,000-word article without talking about the “R” word. We are not currently in a recession, but the medium-term outlook is still cloudy in the next 12-18 months. While underlying inflation is high, and unless it comes down sufficiently to make the Federal Reserve happy, the Fed may tip the economy into recession. On the plus side, the resilience and robustness of the US labor market means the economy can absorb more Fed rate hikes than we previously thought; on the minus side, extra resilience and robustness may mean extra rate hikes! It might just take longer to get to low inflation, whether via recession or not.
The Twin Cities job market has seen its ups and downs over the past few years, but businesses can still find success in their hiring efforts by understanding the local trends and using proactive strategies for recruitment. Employers who take the time to invest in quality talent acquisition, embrace diversity and inclusion initiatives, understand technology advances, optimize communication practices, and plan for long-term success will come out ahead.
The challenge is to be proactive in the face of a changing economic landscape and focus on creating an environment that attracts and retains top talent. With the right combination of planning, strategy, and communication; businesses can make the most of their recruitment efforts and build successful teams for years to come.
Award Staffing can help your business create a competitive advantage in the Twin Cities job market by taking proactive steps to ensure they have access to top talent. Investing in quality talent acquisition, embracing diversity and inclusion initiatives, understanding technology advances, optimizing communication practices, and planning for long-term success are all essential components of we can aid to help you create a successful hiring strategy. Contact Award Staffing today, and let us help you find the right people to meet your business needs.