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 Speed Hiring Right For You?

Labor shortages in the U.S. have been a longing issue that businesses have been battling with due to the rise of the Omicron variant and the “Great Resignation.” According to the Labor Department’s latest Job Openings and Labor Turnover report, approximately 4.5 million workers quit their jobs in 2021 which is equivalent to 3% of the total U.S. workforce. Most of the turnovers came from minimum-wage industries such as food services, health care, social assistance and warehousing. In order to combat labor shortages, companies such as Home Depot have adjusted their hiring strategies in order to get their speed hiring perfected.

How Fast Is “Speed Hiring”?

Dubbing the hiring shift as the “speed hiring” era, companies are taking less time to hire in order to expand their workforce. Jobseekers usually have to go through a timely process before obtaining a job. On average, the hiring process takes about 23 days to hire with some industries taking up to 53 days to hire. Not to mention, the jobseeker market is highly competitive as it is candidate-driven. Jobseekers have more bargaining power over employers and have a variety of job options.

Some Companies Offer One-Day Offers

In response to the hiring challenges, Home Depot plans to offer job seekers a position within a day of receiving their application. With Home Depot’s plan to increase their workforce by 25% in the Spring, speed is the name of the game in their hiring strategy. According to Home Depot’s vice president of talent acquisition, Eric Schelling, he states that “We know that the same things that are important to our consumers are important to job seekers — speed, simplicity and controlling the experience to fit their schedule”. 

What Types Of Companies Are Speed Hiring?

With the current candidate-driven market, speed hiring might be best suited for companies who lack the right personnel to run their businesses and need positions to be filled right away. For companies that require skilled workers, speed hiring doesn’t mean that the business neglects their hiring standards. This implies that businesses need to reevaluate their hiring strategies in order to speed-up the hiring process. Especially with a candidate-driven market, speed hiring provides companies with a one-up from competitors who are seeking a similar candidate. 

As companies are eager to acquire top candidates, speed hiring allows businesses to cut back on hiring time and costs, gain access to higher quality hires and potentially increase job acceptance rates. 

Speed hiring allows HR managers and recruiters to reduce the amount of time spent in recruiting, researching, and screening candidates. This also reduces the time spent for HR managers and employees covering the workload for the unfilled position; in which, cuts back on hiring costs.

On average, top candidates are out of the jobseeker market within 10 days. Speeding up the hiring process allows businesses to recruit top qualified candidates before other competitors. This secures businesses with their ideal candidate and prevents businesses from missing-out on quality hires. 

Besides acquiring the top suited candidate, speed hiring increases the chances for job acceptance rates. Providing a faster and more efficient hiring process provides a positive candidate experience, avoids candidate bidding from competitors and prevents candidate drop-out. Providing a timely offer also gives jobseekers less time to interview with other companies or engage with counter-offers from other hiring managers. 

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

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What Cities Are Hiring Top Tech Talent Right Now?

This past year has been difficult for U.S. businesses to develop technical talent due to the transition to remote work and with the pandemic halting business advancements. Conducting on-site training is nearly impossible due to the restrictions in place. Renowned tech-hubs such as the San Francisco Bay or the New York City area have experienced a negative shift in migration due to it’s high rent prices. This has caused engineers and top candidate talent to relocate to smaller cities for better cost-of-living. 

Increase Tech Hubs: Madison, Colorado Springs & Raleigh-Durham-Chapel Hill

Smaller cities in the Midwest, South, and Mountain time zones have been experiencing an upwards trend of qualified engineering workers and top candidates migrating to smaller cities. According to a 2021 research study, Madison, Colorado Springs, and Raleigh-Durham-Chapel Hill served as the top three cities where there has been an increase in tech-hubs and pool of engineers. 

Amazon Relocates To Madison

Madison, Wisconsin, named as the most resilient tech hub has progressively been making a name for itself when it comes to engineering talent where they experienced a 4.6% growth in the tech talent pool. This shift has caused top companies such as Amazon to relocate their recruiting into these smaller towns since talent is readily available. Amazon’s business units such as Amazon Web Services and Shopbop have already been on the lookout in Madison, Wisconsin for talent offering over 46 new jobs just for tech talent. 

Cybersecurity Flourishes In Colorado Springs

Colorado Springs, taking the number two spot is renowned for its cybersecurity expertise. A software company named Ivanti has taken notice of the increase in talent in Colorado and has been actively growing its presence in Colorado. The company is planning to hire 50-75 of new candidates in Colorado Springs in pursuit of making the city Ivanti’s “center of gravity” for two main software lines. 

Consider Hiring From Outside Your Normal Geographic Area

Much of the talent that has moved from large urban areas are unlikely to return due to cheaper costs of living, particularly for housing, and improved quality of life. Organizations need to develop their company’s technology infrastructure and organizational culture in order to support remote and hybrid work. Especially with the rise of digital workspaces, companies are continuously expanding and reaching out to smaller states to find top talent. Companies that adapt to the new geography of work will not only cut on their costs by decreasing the requirement for real estate, but they will also gain a competitive advantage in attracting and retaining highly mobile people. 

Could Remote Hiring Be The Best Fit For You?

Considering the growth of smaller city’s talent, the gig economy is a powerful solution to reaching out to a wider range of candidates. The gig economy allows your company to attract top candidates virtually from anywhere. Besides that, you can cut on costs without compromising on the quality of work. The way the gig economy works is that an employee enters into a formal agreement with a company to provide the necessary services. Factors such as hours worked, benefits offered, and duration of contract are just a few of factors in consideration when pairing up staffing needs with a potential gig worker. With the gig economy, the opportunities for company expansion and growth are truly endless. 

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How Video Resumes Can Help You Stand Out To Employers

How Video Resumes Can Help You Stand Out To Employers

With the technological shift in using more video based communications, there has been a new hiring trend where top candidates and job seekers create video versions of their resume in order to grab the attention of hiring managers. The purpose of a video resume is to change the monotony of the traditional way of applying for jobs.

The video would serve as a supplement to the traditional resume similar to a cover letter. Based on a survey conducted by LinkedIn, the majority of the U.S. hiring manager respondents appear to be open to the concept, where 76% of more than 1,000 respondents said that a pre-recorded video of a potential candidate would be useful.

A video resume allows you to talk about your work experience, exhibit your personality, and differentiates you from other candidates. This concept is still fairly new and underutilized by several job seekers, because of skill limitations or being unaware of the concept.

Well, look no further. Here are the tips and tricks from job search experts on how to make a video resume for you to stand out from the workforce competition: 

Keep it Short and Sweet

HR managers go through piles of resumes every day and the video you produce should create a sense of excitement. Creating a video that is too long could be just as boring as the traditional resume. Remember, your video is only a supplementary tool and should not be your main resume. Your video must be in the range of 30 to 90 seconds in length to ensure that the hiring manager stay engaged. 

Give More Depth Than Your Resume

Similar to a presentation, you don’t want to just read from a script. Provide new insights and show your personality, similar to writing a cover letter. A good outline to follow would be having an introduction, your profession or field, what drives you or what makes you passionate, specific accomplishments, testimonials or personal recommendations, and, lastly, your closing statements. 

Utilize Free Video Editing Software 

There are several free websites that allow you to create videos seamlessly without knowing too much about editing. With one simple search, you are able to find free video editing software programs online at your disposal. 

Tailor Your Videos

Just like creating your resume, it is strongly advised to tailor videos based on the company you are applying for. A good tip to take note of without heavily editing the video is to tailor only the first part of the video. This way, all you have to do is to change just the intro of the video each time instead of remaking a video every single time for each company you apply for. 

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