From the “great resignation” to the cost-of-living crisis, the 2022 job market has been through a lot. The way you conduct business has had to adapt to new employee demands and expectations. Workers are shifting career paths and the opportunity for more remote and hybrid working with the help of recruiting CRM Software is becoming the norm.
The UK’s largest independent outsourcer, Kura, discusses the changes we have seen in the job market over the last year. Also how this will impact both your business and recruitment practices going forward.
Shifting employee demands
After the changes with the “great resignation”, it is no wonder employee demands are higher than before. One-fifth of employees are looking to leave their jobs in 2022, according to recent recruitment statistics. While the reasons for this differ between companies, we are still seeing a willingness to leave employment which was not present a few years ago. This is even present in businesses which prioritise retention. This has meant that vacancies increased over the last year – hitting a peak in May 2022.
Randstad’s survey of over 163,000 respondents found that 65% of workers named a good work-life balance as a top priority. They would choose a healthier lifestyle over salary increase and other incentives. Employees are valuing their downtime and mental health higher than before. So, the desire to find a balance between work and leisure has increased.
This means that companies are now looking at how better work culture and further opportunities in hybrid working can retain employees and appeal to jobseekers. It was found that 20% of workers want fully remote-working opportunities. While a majority of workers (51%) are seeking hybrid-working roles.
Companies must now consider the benefits of home-working and the methods around which this can be achieved. You may have to adapt procedures to be more remote-friendly while still offering the in-house security of an office environment.
Mental health in focus
Employees are now also looking for better benefits when it comes to new job roles. Offering mental health schemes, training and advancement opportunities, and company perks can all assist in attracting jobseekers.
Janine Hunt, Client Partnership Director at Kura comments, “Employees know what they want now more than ever. It is important for the retention and employment of highly skilled individuals that they are offered good benefits. From advancement opportunities to hybrid working, the face of the job market has changed dramatically in the last year. [It is] increasing employee demands.”
“Employees benefit from good company culture and the encouragement for advancement within the company. These features can make your company more appealing to jobseekers. When your employees enjoy their work, they take pride in it.”
Impact of the cost-of-living crisis
The cost-of-living crisis is forcing more people into employment. In the UK, employment has reached its lowest point since the 1970s. But many are struggling to keep up with the daily costs of life. This low in unemployment means that new recruitment is often a challenge for businesses.
According to the CIPD Labour Market Outlook: Winter 2021-22, almost 50% of businesses are willing to increase pay in order to combat recruitment struggles. Alongside bills reaching up to £2,500 annually, many jobseekers will be looking towards higher pay to keep up with rising inflation.
This demand for higher pay, alongside a lower pool of unemployed, can make recruitment difficult. Especially for smaller companies who cannot afford to compete with larger corporations. However, this is not the be-all and end-all for small business recruitment. Many prioritise work enjoyment over salary. Equally, adopting services such as customer service outsourcing could be a cost-saving measure. This could save your company the difficulties of recruitment while still managing to meet growing client and customer demands.
Over the last year we have seen fluctuation in the job market. This runs from the increased demands of workers, to the shifting attitudes towards work and lifestyle. Employees are looking for better opportunities and have less loyalty to companies than before. With the increasing struggles of the cost-of-living crisis, unemployment is down and recruitment is harder to conduct without meeting the new demands of high-skilled workers.