Recruiting in 2022? Here’s what you need to know.
Any business that has been making significant hires during Covid, and even before 2020, may have noticed how challenging it has become to find good hires. 2022, brings along new challenges, and new opportunities for companies to grow.
The Great Resignation: true or false?
The Great Resignation isn’t just a marketing ploy from recruitment firms, it’s a reality that we are facing across the UK, and globally. In 2021, more people voluntarily left their jobs than ever before, and that’s set to continue into 2022. To put that into numbers, between July and September 2021, a million Britons changed jobs.
Those changing roles are not just junior hires but senior leaders are moving on too, with some not reentering the jobs market. A recent poll of 200 UK leaders in white-collar roles such as law and finance found that more than one-third of these leaders were prioritising family time in 2022, and 17% said they were planning to accelerate their retirement plans.
What we can learn from this is that employers need to invest in company culture, they need to ensure that they’re providing for their current staff and that they’re keeping up with industry trends.
Internal training schemes are more valuable than ever
For companies to address staff retention issues and skills shortages at the top, they must invest in staff training and development.
Employees at companies with high internal mobility, so options for promotion and new roles in new teams, stay almost twice as long.
But promotion opportunities are not the only way to attract and retain staff. The meaning of success has changed, with employees now prioritising work-life balance, their mental health, and having a meaningful role above financial stability.
Employers who don’t look after their employees will no longer be tolerated, so employers must step up to the plate if they want to keep and hire top talent.
Wages are increasing
Inflation is at a 30 year high of 5.4% in the UK, with some suggestions that the cost of living has increased a whopping 15%. There are three main factors, energy prices (up 23%), fuel costs (up 27%) and a rise in the cost of consumer goods.
That means that employees who didn’t see a 15% pay rise at the start of 2022, are actually worse off than they were this time last year.
On average we’ve seen 4% wage increases, an increase in signing bonuses, and in professional roles at Exceda we’ve seen wages rising a lot higher than 4% due to skills shortages in the industries we serve.
Wages need to be addressed for current employees and new hires. We’re in a candidate short market, as despite the Great Resignation we’re also seeing an increase in roles, and candidates leaving the workforce.
Hybrid and remote options are the new normal
Research carried out by LinkedIn revealed that 87% of employees globally would like to remain remote, most of the time. Month on month, flexible work arrangements are becoming a higher priority for candidates. This isn’t going to be smooth sailing, as employers still have a bias against remote or hybrid employees who are less likely to be promoted or receive a pay rise.
Management teams therefore must spend time creating a cultural shift where all workers have an equal chance of progression and monetary reward.
An increase in flexibility has also meant that a high number of people who have caring responsibilities feel able to return to work so employers who embrace flexibility will have access to a wider candidate pool.
The self-employed are re-entering the jobs market
The pandemic has caused a shift in our perception of stability with 820,000 workers leaving self-employed status behind in 2021 and taking on permanent roles. Tax changes related to IR35, less stability, and a perceived lack of government support for the self-employed during the pandemic have created a catalyst that has shifted people’s focus.
For employers, this means they’ll have access to a talented new group of potential employees who will most likely demonstrate adaptability, resilience, and a strong work ethic. These resumes that are outside the norm are definitely worth considering.
The four day work week?
In June, 30 UK companies will adopt a 4-day working week as part of a six-month pilot. Rather than doing 5 days of work across 4 days, employees will receive the same pay for fewer hours.
The idea, which has proved popular in Scandinavia is that less time at work will actually boost productivity during those working hours. With longer weekends, employees will be less likely to suffer burnout and will live a healthier lifestyle.
Of course, we won’t see the full impact of this trial until the end of 2022, and into 2023, but it’s safe to say that this will be something that businesses and employees will be watching closely. Could this be the future of the workplace?
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If you’ve got any questions about anything we’ve addressed in this article, then we’d love to hear from you.
We recognise that navigating this new era of jobs and recruitment is tricky and we’d be happy to advise and help.
