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"The Great Resignation." What began as a whisper in business schools and analytics teams' in early 2021 has now become a phenomenon that's pervaded nearly every industry.
According to CNBC, 4.3 million people left their jobs in January of 2022. This was the largest exodus from the workforce since the Great Recession.The reasons for this are numerous and complex, but they all come down to a simple truth: people are tired. They're tired of being underpaid, overworked, and taken advantage of.
Opportunities to make money online seem to abound and despite a frothy market, people have begun to realize that their time is worth more than they're being paid. As a result, the talent exodus has only accelerated.
This has left many businesses scrambling to find new employees and keep up with the competition. The most in-demand workers are no longer content to sit in an office all day. They want remote work, flexible hours, less time commuting, and more time for family, and travel.
If you follow hiring trends, this is no surprise to you.
In response, business leaders and executive teams have been asking, "how can we future-proof our workforces against an ever-changing landscape?"
The "war for talent," as it's recently been called, is only going to intensify in the coming years. This is especially true when we look at the upcoming trends in recruitment for 2022.
The one everyone is talking about is retention, according to the top recruitment trends in 2022.
How do we keep our best people?
Now, this requires that we start with an avatar of who our best and most impactful employees truly are. A dynamic look at what makes your best employees perform at the level they do will give you an idea of how to replicate and recruit individuals like them.
And, how do you do it quickly, efficiently, and cost-effectively?
The costs of recruiting have dramatically increased in recent years.A shift in the way companies recruit is in full swing.
The traditional process of posting to big job sites, hiring costly recruiting agencies, and hosting in-person interviews seem to be ineffective for candidates.
Especially with hiring managers getting hundreds of applications that they're unable to respond to.
The fastest growing companies are now turning to ecosystem-based job boards like High Alpha Talent, and influencer-based job boards like Powderkeg, and ExitFive to quickly access top talent.
Large recruiting agencies have given way to role-specific and industry-based recruiters, allowing for targeted results at dramatically lower costs.
As far as trends, when an influencer can post an open role on LinkedIn and see more applicants in one day than a large job site can in a month, it's time to start changing the way you think about recruiting.
And finally, in-person interviews have been replaced by interview intelligence software powered by AI.
Interview Intelligence software allows companies to quickly identify the top talent by facilitating interviews remotely, analyzing candidates' responses to questions, and allowing an efficient systemized approach to guide interviewer inquiry rather than relying on interviewers' gut feelings or first impressions.
To reiterate, the biggest recruitment challenges of 2022 are:
1. How to retain top talent?
2. How to assess new talent quickly and efficiently?
3. How to reduce the cost of recruiting?
4. How to find new channels for recruiting top talent that speed up the process?
To be successful in recruiting top talent into 2023, you'll need to find solutions to these questions and be using technology to efficiently identify and assess talent.
Check out, “How to Build the Best Tech Stack.” It will guide you through choosing the right tools for your hiring needs.
So, what happens when the markets shift and investors get skittish?
Generally, a tech hiring slowdown ensues.
We've already seen this trend once as big tech hiring froze during the early stages of COVID. And we're seeing it again with a decrease in job postings and an increase in layoffs across the tech industry, right now.
The good news is that the effects of a slowdown tend to be temporary, as companies eventually adapt and find new ways to use technology.
In the meantime, certain technologies will continue to be in high demand, such as those related to 5G, cloud computing, artificial intelligence, and cybersecurity.
Here are some specific technologies that will be in high demand in 2022:- 5G: The rollout of 5G networks is expected to create 3 million new jobs by 2025. Companies will need workers to build and maintain the infrastructure, as well as develop and deploy new 5G-enabled applications.
- Cloud computing: The global cloud computing market is expected to grow from $272 billion in 2020 to $623 billion by 2025. This rapid growth will create demand for workers with skills in cloud infrastructure, cloud security, and data analytics.
- Artificial intelligence: The global AI market is expected to grow from $24 billion in 2020 to $203 billion by 2025. This rapid growth will create demand for workers with skills in machine learning, natural language processing, and data science.
- Cybersecurity: The global cybersecurity market is expected to grow from $170 billion in 2020 to $258 billion by 2025. This rapid growth will create demand for workers with skills in cybersecurity, risk management, and data security.
Observing the technology hiring trends for 2022 has led many skilled candidates to roles in companies focused on 5G, cloud computing, artificial intelligence, and cybersecurity. These technologies continue to create millions of new jobs and offer opportunities for those with the right skills.
March of 2022 was a huge month for tech hiring, with many companies posting record numbers of job openings. This was despite the ongoing pandemic, broken supply chains, and rising inflation, which caused many other industries to suffer.
Hiring trends in March 2022 began to shift as we hit the second anniversary of COVID. The effects of the pandemic began to normalize, and many companies were once again able to return to business as usual.
This led to an increase in job postings, as well as a decrease in unemployment. In fact, the unemployment rate in March was 4.5%, down from a high of 6.2% in January.
As Q3/ 2022 is coming to a close, we're beginning to see a downtrend in job postings and an increase in layoffs.
There are several potential reasons for this shift.
Quite often companies begin to wind down their hiring toward the end of the year. But also, the effects of several depressed quarters combined with the current inflationary environment are likely to catch up with many companies, leading to cutbacks.
Looking ahead to 2023, we expect the overall trend to be positive, with job growth in most industries and sectors. However, there will likely be some volatility as the economy adapts to changing conditions.
We've all heard it said, "the best time to look for a job is when you are still employed." This is doubly true with the current market trends we're seeing today.
Hiring trends by month traditionally follow a seasonal approach.
Job postings begin to increase in the spring and summer months, with a peak in July/August. This is followed by a decline in the fall and winter months, with a trough in December/January while most industries take a break for the holidays.
This cyclical pattern is due to several factors, including the budgeting process for many companies and the seasonal nature of some industries (e.g., retail).
The current pandemic has caused significant disruption to this pattern, with job postings declining sharply in March/April 2020 and then beginning to rebound in May/June.
However, we've seen a decline once again in the fall of 2022.
Looking ahead, we expect job postings to begin to increase in the spring of 2023 as businesses adapt to the new normal.
So if you're asking, "when will companies start hiring again?" The answer, if you position your skills well, is now.
The worst time to look for a job is when you're unemployed and the economy is in a downturn.
The technology industry has been one of the few bright spots during the pandemic, with job postings remaining relatively steady throughout COVID. This is in stark contrast to many other industries which have seen a sharp decline due to the economic effects of the pandemic.
As we adjust to hiring trends in the new normal, we'll need the resources to interview candidates efficiently and equitably.
Pillar's interview intelligence platform helps you do just that, by automating the scheduling and screening of candidates so you can focus on what's important: hiring a great team.
To learn more about how Pillar can help you save money and adapt to today's hiring landscape, request a demo today.