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Why Employers Are Struggling To Hire The Right Talent In 2022

Updated: Jan 18, 2022

The after-effects of COVID-19 on the economy are here to stay. There is a looming sense of fear and uncertainty due to massive layoffs that took place during the pandemic. The pandemic has also created a new problem for employers who are now also finding it hard to hire the right talent for the respective job openings.


According to the U.S Bureau of Labor Statistics, there were 9.4 million job openings as of May 2021 as compared to the 6 million vacancies reported in June 2020 within the US. However, now that companies are getting back to hiring people, there are massive challenges ahead of them.


We are living in times when cultural shifts and economic disruption together have changed the way employees want to work. As a result, the success of companies would greatly depend on how they navigate the new demands of the job market.


Here are some of the reasons that have emerged as the biggest problems continuously faced by companies during their hiring process lately

With the advent of technology (robots, automation & artificial intelligence (AI)), fear and insecurity about the jobs especially of local workforces is on the rise. More people are getting concerned about the shift in the market due to the growing polarization of labor market opportunities. It’s consequent effects include unemployment, underemployment, and disparity of income. There’s no denying that technological innovation and automation have severely altered the employment landscape.


Employees Exploring New Careers


Post COVID-19, there has been a record number of resignations as more employees have begun to rethink what they want to work on. The "Great Reshuffle" of talent and opportunity has also been visible on LinkedIn in recent years as the share of US members changing their jobs went up to 50% from 2020 as compared to nearly 30% in the pre-pandemic year 2019.


Around 42% of working Americans have taken a break from their existing career, and as per the economic research done by The Federal Reserve Bank, 3 million Americans have retired early because of the ongoing crisis.


These high quit rates are indicating signs of a healthy and recovering labor market. There are more workers now who feel confident in leaving their current jobs, hoping to find a better deal elsewhere. The reasons behind them moving are obvious as many are either opting for better compensation or more flexibility, and there are others looking for more fulfilling work.


Moreover, a survey conducted by LinkedIn also showed that 73% of Americans felt less fulfilled doing their current jobs.


Employers can take advantage of the crisis by offering opportunities that could push workers who are looking to try something new. A report by CNN has already backed the idea as employees at companies who get to change their roles internally stay almost two times longer than the ones who keep following the monotony.


More Employees Prefer To Work From Home


Despite the teething issues caused by the work-from-home culture during the early days of the pandemic, remote work has been a blessing in disguise for a lot of employees who were already looking for the right work-life balance.


People who have children want to work from home as the FlexJobs’ survey showed 61% of parents opting to work remotely and only 2% of participants willing to return as full-time employees once the pandemic is over. But accessibility to children and parents prioritizing childcare isn’t the only kind desiring to work from home.


When Business Insider conducted a survey on the similar matter, there were 39% of employees who were clear about quitting their job if they are not given the opportunity to work from home.


There are certain industries that can easily adapt the remote work models. On the other hand, there are also critical sectors such as manufacturing that need people on-site by all means.


For now, there seems to be only one way to overcome this hurdle and it would essentially revolve around companies making the full-time office work opportunities more attractive i.e by offering benefits like higher pay or mental health support, etc.


Employees Lack New Key Skills


There is more automation around the corner but very little improvement in employee skillset to counter it. The World Economic Forum has projected that by 2022 almost 54% of all employees would require reskilling and upskilling to cope with the changing work requirements.


Applied skills have been another problem as 45% of HR professionals found it hard to hire candidates with the right critical thinking and problem-solving skills, with 43% struggling to even demonstrate professionalism and work ethic.


With that, COVID has taken us into a new age where companies are now focusing on digital, cognitive, social, and emotional, and adaptability and resilience skills. All of these skills are going to stand fundamental irrespective of an employee’s role within the workspace.


While the Americans have adapted to the challenges of the pandemic, it is time for employers now to step in with the right strategies if they want to hire the right candidates for their all-important roles.


 







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