How Will Inflation Impact Your Hiring This Year?

With gas prices almost tipping to $6 this June in the Chicagoland, the dreaded word, inflation, is the number one cause for grumblings from every commuter and business owner today. Hiring managers this quarter will have to discover how to create a profit while cutting costs. That’s all while balancing workers requesting an increase in pay to offset the increase cost of living. From large corporations to small local stores, organizations from every size and shape are not immune to the result of inflation, but how exactly will inflation affect the job market?

Let’s take a look at how inflation may impact hiring this year and what that means for pay and profits.

Will Hiring Be Touched By Inflation?

For an insight into how high inflation will affect pay, positions, and more this year, let’s reflect on the basic principal that when inflation is low, then unemployment is actually high. To counter the woes of inflation, unemployment usually has to rise.

“Hiring won’t necessarily decrease just because we anticipate unemployment to rise.” says Jeff Naugle, with Catalyst Career Group’s Hiring Fairs.

This idea may sound counter active, but in actuality, during a recession or times of inflation, organizations don’t just stop hiring. They begin to change the way in which they hire for that season.

“We can expect to see hiring managers transition from the concept of hiring a single full-time worker for a position to a multi-hiring part-time hiring to save on costs.” says Jeff Straub, with Catalyst Career Group’s Private Recruiting Events.

Contact, “gig”, and part-time workers are all types of positions we can expect to see more of in the future as we move into more of an inflated economy. Employers won’t have to pay for benefits such as healthcare, and part-time works come at at cheaper rate that full-time team members.

Do You Need To Adjust Salaries In Response To Inflation?

There as been a trend during high inflation periods for team members to ask for more money. This is in response to the greater cost of living. As an example, data from the Bureau of Labor Statistics show that wages have increased by 5.6% in the past 12 months. That is at the same time as prices have increased by 7.9%. There is definitely a definite in wages to prices and there will be movement on this forefront to equalize this across every industry.

“As a hiring manager, one of the big things you’ll have to do is address these concerns on a case by case basis,” says Naugle. “A vice president’s salary is going to look much different than a waitress’s hourly rate, so what is your bargaining power to retain top talent for the position you want to fill?”

Hiring managers that want to retain quality candidates must be creative and source the right talent if they don’t have the budget for typical raise percentages. Other perks and benefits can be a major contributor to hiring and retaining an employee.

Hiring Forecasting: Does Inflation Create Recessions?

The 1970’s showed us that when inflation has reached the levels that it is today (think again about the $6 for gas in the Chicagoland), the government counter acts by pushing the economy into a recession to slow spending and ultimately change the way people spend their money. That is what we can expect to happen today.

Companies can expect to protect themselves during recessions by investing in quality candidates for their most necessary positions, being strategic about their pay, prioritizing their marketing, and focusing on customer service (did someone say talented hires again?).

Consider how you can beat inflation for your organization and hire the right people in the right positions at the right price point. Ask us about our virtual job fairs or private hiring events and what job descriptions will draw out the right candidates to help you be successful during this season!

What Exactly Do Hourly-Based Workers Want?

Choose your own explanation. Overly generous unemployment benefits. A childcare crisis. People are lazy. People are afraid of COVID. People are fed up with what they perceive to be “dead-end” jobs. People are readjusting their priorities. All of the above. 

What Exactly Do Hourly-Based Workers Want? 

More than ever, businesses are experiencing difficulty in retaining and attracting hourly-based workers. According to the Federal Reserve, blue collar employment has declined 17% compared to a 4% decrease in white collar work since the pandemic began. There are several factors that contribute to this issue such as COVID-19 fears and mandates, an abundance of unemployment insurance, the lack of motivation for people to seek employment and people rethinking their career paths. 

In order to attract job seekers, companies are drastically increasing their wages as well as providing monetary incentives. McDonald’s, Walmart, Costco, and Target have increased their wages up to $15 per hour. Amazon is offering job seekers a $1,000 sign bonus when onboarding new hourly-based workers. Companies are not the only ones experiencing difficulty in increasing their workforce but States such as Chicago have increased the minimum wage to $15 per hour in an attempt to motivate people to work. 

Increasing wages and offering monetary bonuses may serve as a short-term fix in attracting job seekers and incentivizing hourly-based workers. However, what exactly do hourly-based workers want? What are viable ways to stand out amongst other competitors seeking to increase their hourly-based workforce? 

Predictable and Flexible Schedules

59% of hourly workers state that they would quit their job because of scheduling issues. Hourly-based workers want to be able to make plans out of work and anticipate time off. Predictable and flexible work schedules allow workers to make time for themselves and enjoy life beyond the workplace. Especially coming out of the pandemic, workers have reflected on their life priorities and career where 80% desire a better work-life balance. Providing predictability and flexibility with scheduling increases the worker’s devotion for their job and company. This is evident in a survey conducted by Voice of the Blue-Collar Worker where hourly workers who stuck with a job for 5 years or more cited their loyalty was because “I liked my work schedule”. 

Paid Time Off and Leave

73% of hourly workers would trade an increase of $1/hr. for an extra 5 days’ time off. As mentioned earlier, hourly-based workers desire a work-life balance. Having to balance household responsibilities, a second job, academics, or having an illness could cause anxiety with worrying about fulfilling their finances. Paid time off and leave allows workers to have more independence and control over their schedule. In addition, this allows workers to set a day to relax from their busy work schedules; which in turn increases worker productivity and employee satisfaction. 

Early Access to Pay

More than 125 million U.S. adults live paycheck-to-paycheck. Of which, 70% of workers state that they’re in financial stress while more than 50% state that it’s affecting their work. Early access to pay allows workers to pay for any necessary purchases as well as avoid pricey payday lenders, late charges and bank overdraft fees. Employee benefits such as Earned Wage access allows employees to receive their wages well-in advance prior to the scheduled payday.Particularly in hiring, providing early access to pay as an employee benefit makes unfilled positions more enticing for job seekers. According to PwC, 72% of millennials and 71% of Gen Xers are more likely to be attracted to a company that “cares about their financial well-being”. 

Career Advancement 

Hourly-based workers seek progression with their position and desire long-term advancement of where it could lead them to. Providing career advancement allows workers to be more engaged with their jobs and committed to the company. A study on employee engagement found that companies in the U.S. lose between $450-$550 billion each year due to disengaged workers. A clear career pathway not only motivates workers but allows businesses to attract more candidates, increase employee retention, reduce hiring costs and increase profitability. According to a study, companies with a highly engaged workforce have a 17% higher productivity in comparison to companies with a disengaged workforce as well as have 21% higher profitability. 

Diversity, Equity and Inclusion (DEI)

According to a survey conducted by GlassDoor, 67% of job seekers consider workplace diversity an important factor when considering employment opportunities, and more than 50% of current employees want their workplace to do more to increase diversity. DEI in the workplace means that the company provides fair treatment to their employees regardless of their age, race, background, gender, culture and religion. Hourly-based workers want to feel a sense of belonging and inclusion in the workplace where they are valued for who they are. Incorporating diversity, equity and inclusion in the workplace provides the notion that the company respects each worker and their needs. 

Companies that instill diversity, equity and inclusion as the forefront of their workforce makes open positions and companies more attractive in the eyes of the job seeker. According to a survey by GlassDoor, 76% of job seekers and employees report that a diverse workforce is an important factor when evaluating companies and job offers. 

Contact us to discuss our recruitment services to help you with your success in hiring.

Is Gen Z Struggling To Return To The Office?

With the incorporation of remote work as a workplace norm, several businesses and employees have experienced countless benefits that a remote-based work environment entails. This is even more applicable for the Gen Z workforce. According to a survey, over 85% of managers believe that having remote workers will become the new normal for many teams. Remote workers are able to attain a better work-life balance, workplace flexibility, better well-being and an increase in satisfaction. From a business’ standpoint, the implementation of a remote workforce calls for a reduction in office expenses, provides the business with a competitive edge in the jobseeker market, have access to a wider and diverse candidate market and have seen an increase in employee productivity up to 77%. 

The success of a remote-based workplace has even paved the way for the gig economy to thrive. Currently, about 36% of US workers are taking part in the gig economy. The growth of the gig economy has experts believe that in 2027, more than 50% of the US workforce will participate as a gig worker, freelancer or contract worker. 

Gen Z Stepping Foot In Offices

Despite the benefits and rapid growth of remote work, several members of Generation Z in the workforce have not set foot in an office and are experiencing major drawbacks to their wellbeing and career development. Members of Gen Z have been feeling unmoored and anxious which could potentially cause a detrimental effect to their careers in the long run. 

Gen Z Working Face-To-Face

Gen Z workers lack the face-to-face interactions they would normally get from working in-person; with regular workplace interactions being replaced with zoom calls and email chains, long gone are company Friday night get-togethers and workplace traditions. The absence of face-to-face office interactions results in Gen Z workers unable to perform at their highest capacity as they have a harder time meeting work expectations, catching up with deadlines and lack the crucial leadership guidance which leads them to fall behind. The outcome of the situation Gen Z workers face implies a low self-esteem, guilt and anxiety. To add on, members of Gen Z working remotely miss the opportunity to interact with other colleagues in order to build their professional network. 

Gen Z Working Remote

Working remotely also results in an increased feeling of loneliness and anxiousness. In Q2 of 2020, those who worked from home exclusively reported higher loneliness at 23% through the start of 2021. Beyond working remotely, the feeling of loneliness and anxiousness is more apparent with members of Gen Z as they are accustomed to spending time in front of screens. According to a study conducted by the National Institute of Mental Health, 70% of Generation Z members across all diverse backgrounds state anxiety and depression are both crucial problems among those in their generation. 

Gen Z’s Career Crisis

Another issue Gen Z workers encounter with remote work is facing a career crisis where they have less work experience and power in the workplace. This leads them to feeling out of the loop and unable to determine if they are on the right track. Emails and zoom meetings can only depict so much, without knowing how their bosses and supervisors truly feel, they may be more vulnerable to imposter syndrome; where they doubt their abilities to perform and provide meaningful work. In addition, the inability to form a strong connection with their coworkers and supervisors leads to Gen z workers being more susceptible to misunderstanding situations and having bad feelings at work. 

Flexibility For Gen Z’s Work Style

In light of the situation, a more applicable strategy would be providing employees with the flexibility to either work remotely or come in-person. This will allow employees and Gen Z workers to attain the comfort of a work-life balance and workplace flexibility while still having the interpersonal connection in office. Companies such as Apple and Microsoft have implemented this strategy through a hybrid workplace model where employees come into the office half the work week and spend the other half working from home.

Contact us to discuss our recruitment services to help you with your success in hiring.

VIRTUAL JOB FAIRS (Diversity)

Consider joining the upcoming area Job Fair. These are multi-profession, multi-industry VIRTUAL EVENTS where recruiters can safely connect live with area talent and maximize their recruiting efforts from the comfort of their own office.
+ Learn more about Virtual Job Fairs here.
+ View the Chicago Virtual Diversity Job Fairs here.

PRIVATE RECRUITING EVENTS

Your Private Recruiting Events are an efficient way to recruit. Qualitfied candidates are sourced, screened, and presented for you to interview.
+ Learn more about Private Recruiting Events here.

SINGLE-COMPANY VIRTUAL HIRING EVENT

Host your own online job fair exclusively for your company.
+ Learn more about Single-Company Virtual Hiring Events here.

Virtual Hiring Brought To You!

VIEW MORE: Try “Different” Experiences To Get Better Candidates …

What Industries Are Having The Most (And Least) Success In Hiring?

Did you know that 23% of people working in retail plan or hope to leave their current employer within the next six months? And only 33% of retail workers state that they plan or hope to stay in their current roles over the next six months. As you can see, millions of American workers are feeling restless with their current jobs as they scramble to find new work opportunities. Here’s a glimpse into the minds of employees when it comes to increasing your success in hiring.

Will Increase In Pay Make A Difference For Success In Hiring Retail?

Added workplace stress with an increase in foot traffic are just a few of many reasons why retail workers are making the shift in their careers. Another factor is that several retail stores offer only part-time hours each week. With employees not being able to sustain a reliable income, the best option for many is to make the job shift. 

In response, leading retail companies have been offering a sizable pay boost in order to attract candidates and provide an incentive for current employees to stay. Target is even offering up to $24 per hour in contrast to other competitors offering below $15. 

Recreation, Travel & Art Industries Success In Hiring

Retail is not the only industry where employees are feeling a high level of restlessness but industries such as the recreation and travel industry and art industry are encountering a similar issue with employees wanting out.

Recreation & Travel Industries: Within the recreation and travel industry, only 37% of employees are planning to stay in their current role and 19% of employees are planning to leave.

Art Industry: The art industry is experiencing an identical phenomenon where 38% of employees are planning to stay in their current jobs while 19% are planning to leave. 

Design, Transportation, Logistics, Consumer Goods & Entertainment Industries: Notable industries such as the design industry, transportation and logistics industry and entertainment industry are expected to retain only 41% of employees. While the consumer goods industry is expected to retain only 39% of employees in their current positions. 

While 69% of employees are hoping for better compensation or benefits when considering a change of employment, this demand is especially seen within the hardware and networking industry with 79% of employees wanting more compensation or benefits, the entertainment industry at 76% as well as the media and communications industry at 75%. 

Can You Get Success In Hiring By Offering Opportunities Or New Skills?

On the other hand, 49% of employees state that a key factor in switching employers and positions provides them with an opportunity to learn or practice new skills or expertise. This is most prevalent with employees working in the wellness and fitness industry at 65% and the recreation and travel industry at 57%. 

Other employees are considering the switch due to a misalignment with their interests or values. Where 53% of potential U.S. job switchers are looking for a new employer that offers better alignment with their interests or values. This is most sought after by employees working within the recreation and travel industry at 61%, the wellness and fitness industry and entertainment industry at 60%. 

Real Estate Is King When It Comes To Employee Retention!

Despite this, the industry with the highest employee retention is the real estate industry where 54% of respondents say they plan or hope to stay in their current jobs in the following six months. Of which, only 12% state that they plan or hope to make a switch.

The reasoning behind a high retention rate for real estate agents is due to their success in the current housing market. Real estate agents are able to generate high earning power in a time where sustainable income is difficult to attain. In addition, real estate agents have the ability to work on-site or remotely which provides an appeal with the integration of hybrid work as a workplace custom. 

Contact us to discuss our recruitment services to help you with your success in hiring.

VIRTUAL JOB FAIRS (Diversity)

Consider joining the upcoming area Job Fair. These are multi-profession, multi-industry VIRTUAL EVENTS where recruiters can safely connect live with area talent and maximize their recruiting efforts from the comfort of their own office.
+ Learn more about Virtual Job Fairs here.
+ View the Chicago Virtual Diversity Job Fairs here.

PRIVATE RECRUITING EVENTS

Your Private Recruiting Events are an efficient way to recruit. Qualitfied candidates are sourced, screened, and presented for you to interview.
+ Learn more about Private Recruiting Events here.

SINGLE-COMPANY VIRTUAL HIRING EVENT

Host your own online job fair exclusively for your company.
+ Learn more about Single-Company Virtual Hiring Events here.

Virtual Hiring Brought To You!

VIEW MORE: Try “Different” Experiences To Get Better Candidates …

Have You Identified Your Hiring Strategies Right Now?

According to the State of U.S. Hiring Survey of more than 2,300 senior managers, 65% of respondents anticipate their company adding new permanent positions in the first half of 2022. 

As businesses start to reopen and consumer demand rises, majority of businesses have been placing efforts in substantially expanding their workforce this year.

Considering the current candidate-driven market, businesses are facing the challenge of attracting personnel suited for open positions. This has caused recruiters to revisit their hiring strategies in order to find a better way to recruit candidates. One way recruiters are confronting this challenge is through prioritizing their firm’s hiring needs right now. 

All About Timing 

Timing is critical when hiring during the beginning of this year as strategizing, onboarding talent and training employees takes some time. Planning in a timely manner allows businesses to set their hiring budget and goals, pick from a bigger pool of qualified candidates and allows newly hired employees to assimilate quickly into the company. 

One Step Ahead

With several companies planning to hire in the beginning of the year, attaining the top candidate is highly competitive and the time to fill increases as the position remains unfilled. Formulating the hiring strategy as-soon-as-possible allows businesses to be one step ahead of the competition. This provides businesses with the opportunity to dedicate more time and energy towards the hiring process and avoid any candidate miss-outs. 

Hiring the wrong person for the job is a costly and time-consuming setback.

The United States Department of Labor estimates the cost of a bad hire costs up to 30% of the employee’s wages for the first year. On top of that, a bad hire decreases productivity and lowers employee morale; so it is vital for businesses to strategize early. 

Spread The News

It is essential for businesses to get the word out that they’re hiring. Utilizing virtual platforms or recruiting fairs allows businesses to network to a wider range of qualified candidates. Expanding the business’s reach to as many jobseekers as possible increases the diversity of the talent pool as well as the probability of finding the right candidate faster. 

Diversity, Equity and Inclusion 

Diversity, Equity and Inclusion (DEI) serves as an important aspect of hiring.

As a matter of fact, corporations identified as more diverse and inclusive are 35% more likely to outperform their competitors.

Diversifying hires allows businesses to generate new ideas and have different perspectives, increase in innovation, increase in employee productivity and profitability and provide a positive company reputation. 

Contact us to discuss our recruitment services to help you with “Speed Hiring”.

VIRTUAL JOB FAIRS (Diversity)

Consider joining the upcoming area Job Fair. These are multi-profession, multi-industry VIRTUAL EVENTS where recruiters can safely connect live with area talent and maximize their recruiting efforts from the comfort of their own office.
+ Learn more about Virtual Job Fairs here.
+ View the Chicago Virtual Diversity Job Fairs here.

PRIVATE RECRUITING EVENTS

Your Private Recruiting Events are an efficient way to recruit. Qualitfied candidates are sourced, screened, and presented for you to interview.
+ Learn more about Private Recruiting Events here.

SINGLE-COMPANY VIRTUAL HIRING EVENT

Host your own online job fair exclusively for your company.
+ Learn more about Single-Company Virtual Hiring Events here.

Virtual Hiring Brought To You!

VIEW MORE: Try “Different” Experiences To Get Better Candidates …