In 2020, hundreds of thousands of workers found themselves jobless as the pandemic shut down many industries overnight. In 2021, we saw the exact opposite picture. Businesses came roaring back with unprecedented growth as consumers began to spend the money they had saved. Every industry, from shipping to financial services, experienced a growing need for qualified workers to add to their expanding teams. In 2022, that tight labor market continues.
As firms across the country (and beyond) are rapidly looking to hire, the labor market is taking on a different shape than in years past. Over the last 25 years, the professional recruiters at AP Professionals have seen it all when it comes to the labor market. Here is our take on where employers and candidates stand in the new year. Read how the recruiting industry is adjusting to the change.
Competition for Top Talent
Supply and demand are ruthless, unavoidable forces. As the supply of top candidates dwindles while unemployment reaches lows, that means that firms will be competing for that talent. In 2022, hiring will be a different ordeal than in years past.
Employers can expect their candidates to be weighing multiple offers at any one time, and incentives such as sign-on bonuses and increasingly competitive compensation packages are becoming the norm. To stand out from the pack, these firms would be wise to leverage the network and experience that recruitment professionals can offer. Breaking through the online job boards is difficult. Recruiters often have access to a list of candidates and potential prospects that will not be found in the ether of the internet.
Increased Candidate Leverage
Hand-in-hand with the increased competition for employers comes the increased leverage that candidates now have on their side. With many firms vying for the same applicants, these candidates are now in the very advantageous position of being able to negotiate more powerfully and effectively.
Among the chief tenets that new hires find appealing are flexible work schedules, child care, retirement planning, comprehensive health care, and of course, higher wages. In the new year, expect candidates to be much more open about what they need to accept a job offer. If employers cannot respond positively to at least some stipulations put forth by applicants, they may find themselves yielding a suboptimal incoming class.
How Recruiters Are Adjusting
As a result of these market forces, recruiting professionals are busier than ever. With the majority of the firms on the lookout for top talent, recruiters work tirelessly to make the right connections. Recruiting experts must discern between qualified candidates and well-tailored cultural fits.
Recruitment professionals pursue an increased investment in technology to help manage data and search for candidates. Thus with an influx of business, recruiters are prioritizing tech that can make their searches more comprehensive and ultimately fruitful.
Another key consideration for search firms is improving the quality of each hire. Justifiably frightened that their top employees will look for work elsewhere, employers enter the competitive candidate marketplace. Recruiters must ensure that new hires are satisfied and retained for the long-haul. Therefore, recruitment professionals are spending extra time focusing on the quality of the fit between applicant and hiring firm. In a corporate landscape such as this, the last thing firms need are employee resignations. Recruiters work to prevent employee departures.
Your Job Market Specialists – AP Professionals
In an uncertain and competitive market, having the right teammates makes all the difference. Partner with a trusted and proven recruiter who can help alleviate the stress of the hiring process. We promise to free up your time and energy to focus on running your business or navigating your career. Whether you are shopping for a new role, engaging in a passive search, or looking to add qualified members to your team, the recruiters at AP Professionals can help. Visit us online today to learn how we can source the solution that’s right for you.