A new report from Glassdoor and Indeed reveals how employers can best attract new employees
The labor market has completely changed over the past three years, first with the shift to working from home during COVID, then the Great Resignation as workers leveraged their power to demand change, and now layoffs With a range of changes, especially in the tech sector, that could put some power back in the hands of employers.
It can be a little difficult to understand exactly what is happening, or where it is all going. But a new report from Indeed and Glassdoor helps shed some light on what’s important to employees, and how employers are responding to these new demands.
The Hiring and Workplace Trends report focused on five key labor market trends that these companies believe “will persist beyond near-term ups and downs in the business cycle, and even weather a potential global recession.” Can.”
A growing population equals a shrinking workforce
The first trend the report outlines is a tight labor supply, mostly due to demographic changes; That is, many countries in the West have aging populations. In the US, for example, nearly one in four Americans will be 65 and older by 2060, while the number of people aged 85 or older is set to triple, adding to the nation’s half a million people who are at least 60 years old. The fewer are 100. In the UK, there are currently over 11 million people aged 65, and this is expected to rise to 13 million, or 22% of the population, in ten years.
Also, a decline in the birth rate is also being seen in many countries. Between 2015 and 2021, the total fertility rate in Germany was between 1.5 and 1.6 children per woman; By early 2022, it had dropped to 1.3 and 1.4, a 10% reduction. Canada’s birth rate hit a record low of 1.40 children per woman in 2020.
All of this is going to lead to a smaller workforce in the coming years, which can be a good thing for workers, however, they will be able to demand more from their prospective employers, who will have fewer people to choose from.
“Despite growing talk of a recession, Indeed and Glassdoor economists believe hiring
Will continue to be challenging for years to come, driven by demographics and emerging priorities. The report notes that workers will continue to push for higher wages, stronger benefits, scheduling flexibility, and a host of other perks.
spread of remote work
One of the most obvious changes brought about by COVID was the shift to people working from home: Before the pandemic, only 6% of employed people worked primarily from home and nearly three-quarters of workers had never worked from home. did. By May 2020, more than a third of employees were doing so.
Even though things are back to normal now, and some major companies are trying to bring things back to normal by mandating their employees to come back to the office, the reality is that it’s never going back to the way it was. Was before.
As the report shows, not only are more employees looking for remote jobs, but companies are posting these types of jobs as well. The biggest increase in remote job postings occurred in Canada, jumping 275% from September 2019 to September 2022, while most searches for these jobs are coming from workers in the USIn fact, the desire for a remote job is now the biggest factor for women seeking a new job, although “high pay” is still the biggest motivator for both genders.Ultimately, remote working can be a double-edged sword, though; As the report states, this may benefit some workers while possibly excluding others.
“Remote work can exacerbate economic inequality and gender roles (women seek remote jobs at higher rates than men). At the same time, remote work eliminates commuting, making it harder for workers with disabilities to find and maintain employment.” Plus, remote work has the potential to create a lot more diversity in the workforce,” it says.
“Remote work at this scale is new territory for employers, and it is imperative that they continue to monitor and adjust their policies to ensure the inclusivity, equity and diversity of their workforce.”
increased focus on profit
Along with the aforementioned higher pay, which employees have always wanted, another thing that can entice employees to come to a new place of employment, or to stay where they already are, is increased benefits, something that employers Now advertising more often.
The percentage of job postings that include retirement planning, paid time off, and, most notably, health insurance, has doubled since the beginning of 2019, just before the pandemic hit. The targets of these job postings are primarily low-wage workers who are employed in roles that, as the report states, “require presence at the workplace,” meaning they cannot take advantage of remote work. Huh. The employees are compensating for this by giving them additional benefits.
From August 2019 to August 2022, sectors such as personal care and home health saw an increase in paid time off from 21.3% to 38.8%. Overall, between 2019 and 2022, the percentage of low-wage sectors offering paid time off as a benefit increased from 17% to 34%.One area where employers are making rapid strides is in providing mental health services: The percentage of companies offering these benefits has increased 18 percentage points since 2017, and they now make up 63% of benefits reviews on Glassdoor. Huh.A matter of happiness and goodness.
While the Great Resignation was in large part, again, about money, it was about more than that: The second biggest reason cited for people seeking new employment was feeling disrespected at work. In other words, company culture matters and people want to feel happy with their jobs and reduce stress.
A recent study by Indeed found 46% of people said their expectations about happiness at work had increased in the past year, and 86% said how they feel at work affects how they feel at home. We do. Glassdoor’s research also found that, surprisingly, employees who are more satisfied with their current jobs are less likely to look for another; In the US, employees who give their companies two out of five stars are twice as likely to apply to a new job on Glassdoor compared to those who give their companies five stars.
In fact, even a small increase in employee satisfaction can deter people from leaving: in the UK, a one star increase for a company is correlated 19% with a decrease in the number of employees looking for a new job, While in France this percentage drop was 25%. ,
The changing workforce is advancing diversity, equality and inclusion.
There is a demand for greater diversity, equity and inclusion (DEI) among the new generation of workers, which has now come to the forefront as older workers leave the workforce.
For workers aged 18 to 34, 72% said they would consider turning down a job offer or leaving a company if they did not feel their manager (or potential manager) supported the DEI, while 67% said they would do the same if there was a gender imbalance in leadership, and 65% said they would consider doing so if there was a lack of ethnic diversity in leadership.
In each case, the percentage of employees who said they would quit or decline an offer decreased as the age of the workers increased.
Interestingly, while the percentage of benefits reviews citing their diversity program on Glassdoor had a large increase in 2020 and 2021, they went down in both the UK and US in 2022, while continuing to rise in Canada.This slowdown in DEI efforts could have a negative impact on employers’ ability to recruit
and retain employees, the report said.
“Tomorrow’s workforce will care deeply about DEI initiatives, and employers will continue to use these programs to differentiate themselves in an increasingly competitive labor market. Plus, it’s not only good for workers—it’s good for business and society. Good for,” it said.
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