By: Jill Knittel, Founder & President
At the beginning of the pandemic, the job market came to a screeching halt as companies put hiring on hold to readjust internal structures and budgets. The job market is shifting dramatically into the New Year, and staffing shortages have given candidates more power than ever. In November 2021 alone, more than 4.5 million people voluntarily left their jobs. Additionally, more than ever before, people are re-evaluating their career choices, needs, and wants.
With all these factors considered, here is what to expect for the job market in 2022.
What trends are expected to impact the 2022 job marketplace?
As COVID variants and pandemic guidelines continue to change, job trends are expected to evolve with these changes. Continuous increases in virtual employment are expected to persist well into 2022. Candidates have grown accustomed to working from home, and many job seekers value that flexibility in their job searches. To adapt, more companies are allowing their employees to make their schedules, so hybrid work structures will likely become the new normal.
Not every business is able to offer these options, but those companies are enhancing their employee benefits in other ways. For example, companies are increasing compensation packages, acquiring better benefits packages, and offering more robust time off allotments to compete with companies with more work from home opportunities.
What are some of the most significant hiring obstacles that companies will face in 2022?
Given the worker shortage, candidates are becoming bolder in their compensation and benefit requests. This has caused stress on small businesses and employers who are not able to meet these demands.
Further complicating the matter, in 2020, Labor Law Section 194-a came into effect, which prohibits recruiters and hiring managers from asking candidates what their current salaries are. There is also no historical data to reference that would indicate how our current job market should be approached in such unprecedented times.
If increasing compensation isn’t feasible for businesses, partnering with a recruiter like JK Exec will ensure you have expert counsel on the marketplace and competitor offers. That way, you can remain informed on alternative ways to stand out.
How can companies promote loyalty amongst staff as we enter a new year?
Now more than ever, businesses are valuing their talent and looking for ways to keep them satisfied in their roles.
One effective method JK Exec has seen companies deploy is the establishment of “culture committees,” or providing an environment that encourages employees to share their concerns or thoughts on areas of improvement.
Many companies have also invested in professional development for their team, including stipends for classes or workshops and reimbursement for non-profit work or professional memberships.
These additional efforts to keep employees happy in the workplace are vital, especially with remote work negatively impacting corporate loyalty.
Creating a strong workplace culture is difficult in places of employment that have been fully remote. However, it is vital to ensure employees feel valued in their role and workplace despite their work structure. If businesses neglect to adapt to the current market climate accordingly, it is possible another “great resignation” is on the horizon.