The majority of C-suite leaders (92%) in the UK and US admit that their organisation will not meet their goals without the right talent, especially if the current hiring challenges continue, according to new research.
Additionally more than 80% of companies have been negatively impacted by The Great Resignation, revealed the iCIMS 2022 Workforce Report. At the close of 2021, there was a 97-point gap between job openings and job applications, the widest seen in the previous two years. The data showed that job openings are up 86%, hires are up 45% and job applications are down 11% from pre-pandemic levels (Q4 2021 vs Q1 2020).
In an accompanying survey of American adults, only 11% said their employer was not short-staffed last year from pandemic-induced talent shortages. Facing a diminishing supply of applicants, coupled with a job market in which the candidates hold virtually all the cards, business leaders and HR professionals have been forced to rethink how they attract, engage, hire and advance talent.
INCREASING SALARIES
The second annual Workforce Report from iCIMS, the talent cloud company, provides a comprehensive look at the latest labour market activity, key business trends and priorities for employers navigating the new world of work. Key findings reveal that salaries will continue to increase.
C-level business leaders (CxOs) report their organisations plan to increase salaries about 7% on average this year to incentivise retention, with nearly a third planning to increase more than 10%. However, salary increases are not the only employer retention lever. The consumer survey revealed that in addition to competitive pay, people will stay at their current employer for benefits, a flexible schedule and professional growth opportunities. These findings echo those from the UK’s CIPD earlier this week, as reported.
LACKING DIVERSITY & INCLUSION INITIATIVES
Flexible workforce is here to stay, confirmed the study. As competition for labour intensifies, so does the expectation of flexibility across work location and schedules. One in five applications in Q4 2021 were from an out-of-state applicant. Some of the most common improvements include: offering flexible daily work schedules (43%), and offering remote work options to distant (38%) and local employees (36%).
Talent isn’t the only shortage. Diversity, equity and inclusion (DEI), as well as retention and internal mobility initiatives are lacking, noted the study. Companies are failing to keep DEI at the top of the list. Over the past few years, many business leaders pledged to increase the diversity of their workforce, but in the current job market DEI often falls down the agenda list. HR professionals (70%) expressed concern that their organisation’s HR technology is not helping them meet their DEI goals and (85%) of CxOs say they struggle to prioritise DEI goals due to competing HR and recruiting needs.
RECRUITMENT & RETENTION CHALLENGES
Retention is a challenge, but still not top priority, confirmed the report. Nearly two out of three CxOs are putting greater emphasis on hiring talent over retaining existing employees and most companies are not leveraging the potential of its existing workforce to offset labor challenges. In the past year, only 29% of HR professionals have prioritised internal mobility, a missed opportunity for most employers. Companies that prioritise career pathing are seeing the positive impact.
“Shifting priorities and talent expectations require us to think differently and take a more strategic, holistic approach to talent transformation,” said Susan Vitale, Chief Marketing Officer at iCIMS. “It is no longer solely about external talent acquisition; we need to be sure we’re addressing and empowering our existing workforce with career opportunities. Top performing employees are being courted by other organisations every day, and it is up to us to power career inspiration and growth within our businesses. Employee-centric talent tools can help turn hiring strategies inward to create a more engaging, efficient experience and improve retention amid labour challenges.”
Click here to download the report.
Employers are preparing for an epic talent war this year as recruiting and hiring continues to be the top challenge for HR professionals for the second consecutive year. Click here to read more.
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