Hiring isn't getting easier anytime soon

October 13, 2022

There has been some speculation that the slowing down of major global economies may also put a stop to the so-called Great Resignation, the en masse quitting by workers in the US during 2021. However, the latest data suggests that far from ending, the phenomenon will likely engulf other markets.

According to results from a McKinsey & Company survey published in July covering six major world economies, 40% of respondents were unhappy at work, with a high probability of changing jobs. One of the countries was Australia, for which this ratio was 41%, with the highest risk in India 66%. A similar study by PwC released in May, covering 52,000 workers across 44 countries, estimated that one in five workers planned to quit in 2022.

The risk for firms’ human resource planning is obvious, with existing talent shortages likely to be exacerbated. But what’s driving this trend, and how should managers respond?

Great Expectations

While there are multiple factors at play, we think these three are worth highlighting, considering the rapidly changing set of workers’ preferences.

The McKinsey survey showed that more than a quarter of workers are considering quitting because of a lack of workplace flexibility – or the option of being able work remotely partially or fully.

Workers are concerned about the adequacy of their skills to stay competitive in the job market. According to the PwC survey, only 40% of respondents said that their company was investing in upskilling, and just 26% felt that their employer was enhancing work through automation or technology.

Both studies showed that a lack of meaningful work or job fulfilment is a leading issue cited by workers compelling them to consider quitting.

Design a responsive talent strategy

Each organisation will have specific circumstances and needs that inform its recruitment and organisational development strategies. However, in view of the latest insights, we believe that these four broad tactics should be considered by anyone looking to stay ahead in the hiring game.

Expand the hiring pool and go remote. The immediate step companies should take is to actively consider hiring offshore, and move towards a remote-friendly work environment – if they haven’t already. While not every role can be filled in this way, utilising overseas talent can be a game-changer. As an illustrative example, read our summary of what makes Pakistan an under-rated offshore talent source.
Keep candidates ‘on file’. To adjust to the changing job market, managers need to get a little creative when planning their talent pipeline. Having access to candidates screened as suitable for likely future roles can greatly reduce the friction and time taken during hiring. Bettersource helps clients with exactly this, through a vetted on-demand pool of offshore talent.

Inspire to attract and keep people. Probably the biggest takeaway from recent developments in the labour market is that workers increasingly care about a match between their values and those of their employer. Company culture is therefore supremely important in creating a meaningful experience for employees. This should be actively projected, including through social media, to reach younger workers in particular.

Compensate well and define careers. This is something that has always been critical, and will remain so in the future, to attracting quality talent. Compensation and benefits packages need to be market competitive, while the best candidates are put off by ill-defined job roles and unclear growth prospects.

We help solve our clients’ hiring issues every day, by leveraging offshore talent and technology. If our latest thoughts piqued your interest, we would love to hear from you and start a conversation.