Talent shortages aren’t a new phenomenon, but we’re seeing a shift in recruiting and hiring strategies to get the right people for the job, whether it’s a permanent or contingent contract. Extracted from the ebook, “4 Pandemic Workforce Trends That Are Here to Stay,” Taylor Ramchandani discusses that shift and what it looks like in 2022.
Even prior to 2020, every conference ebook or webinar talked about the war for talent. Labor markets were tight, unemployment was low and generational shifts were having a huge impact on the market. Take all those factors, put them in a pressure cooker, and that’s where we are now. The labor shortages we all see and feel come from a variety of different factors that won’t change in the near term. This includes:
- The loss of workers laid off during the pandemic who have subsequently shifted their skill sets and found other, more fulfilling roles.
- The acceleration of retirements as a result of the pandemic, and the creation of skills gaps arising from a generation leaving the workforce.
- A super-competitive labor market reducing talent affordability for mid-market and smaller organizations.
- An increase in vacant full-time positions as a result of the shift to flexible working as the desired mode of work.
The pandemic has had a swift and lasting impact on available talent so organizations are having to get creative—and more importantly, strategic—about how they find and recruit the best candidates.
FURTHER POST-PANDEMIC THOUGHTS | ‘Gearing Up for Post-Pandemic Growth Through Shift Management’
A Pair of Tried and True Strategies
Two of the best recruiting methods used during the pandemic included internal mobility and the implementation of a referral network. While these have traditionally been used in the full-time space for some time, during the pandemic they also became widely used for the contingent workforce. Internal talent provides a mutual benefit of career growth as well as reduced ramp-up times, and referred employees stay approximately 70% longer than non-referred employees, decreasing overall turnover.
STRATEGIC CONSIDERATIONS | ‘7 Reporting Questions to Inform Your Total Talent Management Strategy’
Traditional Hiring Methods for Temporary Staffing
Another avenue that has grown in popularity in the contingent space is the use of direct sourcing alongside the vendor population, expanding the reach of temporary open positions. Organizations choose to leverage their brand, job boards, and career sites to attract contingent labor directly to their organization.
The competitive labor market is driving organizations to reassess their compensation compared to the rest of the market as well. We’ve all heard the term ‘The Great Resignation,’ and while, yes, some people may be leaving for perks and flexible work arrangements, many are getting offers from companies offering anything from 10% to even 50% above what they’re making today. Both contingent and full-time staff compensation need to be evaluated when sourcing and securing top talent.
MORE FROM THE BLOG | ‘4 Ways VMS Tech Can Help You Expand Your Contingent Workforce During the Great Resignation’
Increasing Importance of Informal Skills
Another change that we’ve seen in the past couple of years is the change from position-based hiring to skill-based hiring. What is skill-based hiring? Skill-based hiring is a hiring approach that takes candidates’ practical skills and past performance into greater consideration than their formal qualifications. The cost of higher education and formalized training has increased greatly over time, making people question the value of a four-year degree. By considering candidates who have demonstrated success without a degree, organizations can greatly increase their chances of finding a qualified candidate, especially when hiring for mid- and lower-level positions.
The pandemic has certainly changed the world of work as we know it. To see what other trends are sticking around, be sure to sign up for our webcast with HCI on Thursday, May 5 at 3:00 p.m. EDT! Taylor will cover these trends and more in, “4 Pandemic Workforce Trends That Are Here to Stay.”
Meet the Expert
Nikki Williams – Marketing Brand Manager
Nikki Williams is responsible for marketing strategy and implementation for VectorVMS. In her role, she helps contingent workforce professionals discover the value of a vendor management solutions through blogs, webinars, conferences, and more. Her goal is to ensure these professionals can quickly find answers to their questions about VMS technology. Nikki has more than 10 years of experience as a marketing professional for technology, including human resources technologies as well as leadership and organizational development services. Connect with her on LinkedIn.