We’ve created this report to prepare you for the challenges that will define 2022 and to explore the best way to tackle them. Uncover how you can optimize your workforce strategy to reap the rewards. In 2021, businesses faced incredible challenges – from lockdown and limited trading to the worst labor shortage since 1997. Now more than ever, employers will be defined by their ability to adapt strategically to the talent market. What can you do to prepare for what’s ahead in the next 12 months?
A candidate-driven market
Many businesses were left reeling from the loss of a huge number of employees due to The Great Resignation and saw native workers increasingly uninterested in low-skilled, low-paid work. Businesses will have to offer a lot more than they have been in order to attract reliable, high-quality workers. In 2022, we will see the candidate-driven market mature.
How can businesses respond?
- Employer branding
75% of candidates research a brand before even considering applying.
- Increase retention
The average employee exit costs 33% of their annual salary.
- Use temporary talent
There are now over 13.6 million temporary workers in the US.
- Skill-based hiring
With increasing skill shortages holding businesses back, we will see recruitment shift its focus away from ‘roles’ – and onto specific skills. This will enable more flexible and strategic operation as staffing efforts focus exclusively on the value a candidate brings to the business rather than whether they fit a traditional set of expectations. How can businesses respond?
- Reimagine the interview process
Google reports that it takes them four interviews to make a hiring decision with 86% confidence.
- Find underutilized talent pools
There are nearly 6.5 million people in ‘underemployment’ in the US.
- Embrace short-term workers
In 2020, there were over 59 million people doing freelance work in the US.
- Increased upskilling efforts
Another popular solution to skill shortages is to develop existing workers internally. Not only will this help plug the skills gap – it will also increase retention and loyalty. And for many, it will be the only realistic solution in the short term. In 2022, upskilling opportunities will be key to appeal to candidates. Employees now expect more from their employers, and that includes progression and a sense that their work is ‘leading’ somewhere. How can businesses respond?
- Create a learning community
‘Self-directed’ learning initiatives generally achieve very poor uptake.
- Offer a real career path
48% of employees would switch to a new job if skills training opportunities were provided.
- Locate overlapping skills
Provide an evolving workforce that is able to adapt their skills to new technology.
- Data-driven recruitment
As businesses increasingly use technology for recruitment and HR, valuable information is being harvested all the time. In 2022, businesses that are able to action this data will gain an unassailable lead. Such systems cannot be developed overnight, and amassing high-quality data will require careful coordination internally, but the rewards will be more than worth it.
- Track every part of the recruitment process
Over 50% of employers do not use applicant tracking software.
- Partner with quality tech providers
74% of businesses plan on increasing their investment in HR and recruitment technology.
- Make the data easily accessible
Companies spend an average of 18 hours each month modifying, consolidating, correcting and updating information manually.
