There has been a change in staffing patterns in reaction to the economic recession due to the Covid-19 pandemic, but today’s labor market feels much more complicated than it did during the last recession back in 2008. Then, employers were in the driver’s seat and companies across all industries implemented hiring freezes of historic proportions. In 2008, the economy slowly bounced back, but company management always seemed to have the upper hand and dictated future career moves.
Though record corporate tax breaks were awarded to companies in recent years, employers have not been eager to share those same savings with employees in the form of wage growth. Instead, many large companies used these tax breaks to bolster future capital project investments.
Then came the Covid-19 pandemic, and many workers took on more responsibility as companies cautiously became leaner. According to the Bureau of Labor Statistics (BLS), a record 4.3M Americans quit their jobs in August—an unprecedented level since that data started being tracked in 2000. That’s a 20% increase in voluntary resignations compared to August 2019 and a 40% increase in voluntary resignations from August 2020’s figures.
Job descriptions are changing to balance attracting new employees with remaining efficient as a company. For many prospective employees, title and annual pay are no longer as important as having remote work flexibility, good health benefits, and more vacation days. And the today’s recruiting funnel will continue to become even more automated with numerous recruiting platforms available for small and large businesses.
Companies want to remain top of mind for potential new employee prospects and are using monthly paid search and display campaigns to target ideal candidates online. Employee retention rates are a moving target, and the managers of advertising budgets are hopeful this is a short-term problem. Additionally, with more people open to the idea of working remotely there is more overall competition for jobs than before. A post Covid-19 business environment has fewer in-person geographic constraints which requires more company processes to deliver a consistent customer experience.
One of the best ways for a company to improve employee retention is to change internal perceptions through strategic messaging and well thought out communications to employees. Industry leaders are starting to improve the quality and cadence of their internal communications which also naturally positions employees to be brand ambassadors for future opportunities.
Whether you are a single location or multi-location business, the hiring and onboarding process can look very different by regional office. Standardizing this process through consistent email templates and video is a quick way to improve employee’s perceptions of the company. Video continues to be the preferred medium for boosting internal brand perceptions.
A consistent employee onboarding experience is crucial for the future of remote work. Gone are the days of a new hire settling into a new office environment through 30 days of job shadowing. Most managers want new employees trained and ready to hit the ground running ASAP.