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How Changes in the World Economy Affect Hiring

Recruitment and retention are very sensitive to the state of the economy. The global pandemic has been shaping the labor market for the past several years. As we end 2022 - and finish our third year of working through a pandemic - we can clearly see the consequences of the economic changes on recruitment. About 58% of recruiters cite mitigating economic uncertainty as one of their most pressing challenges. 

To thrive in the fierce job market, HR professionals must be flexible and learn to evolve along with the changing economic state. Recruiters should always be on track with the latest economic changes and its effects on hiring. We have prepared a list of major recruitment changes you should keep in mind when adjusting your recruitment strategies to remain competitive in the tightest labor market in two decades.

Here are the key points:

Changing Ways of Working

When we talk about changes in recruitment, we should consider the shifts in the job preferences of people looking for jobs in the current economic state. The pandemic has heavily affected jobseekers’ attitudes to work status, schedule, and other work-related issues. Not every employee wants to work a 9-to-5 permanent job anymore. People aim for remote working or flexible work schedules, better compensation, and high levels of diversity and inclusion in the workplace. 

The relationship between the workplace and employees has changed in ways that require companies to invest more in creating a comfortable work environment. Doing so can help people balance well-being, productivity, and a sense of connection in the changing future of work.

Virtual Hiring is Here to Stay

More and more organizations adapt to the new ‘normal’ of recruiting by implementing new technologies such as video interviews and virtual onboarding. According to HireVues’ study, virtual hiring is here to stay, but now employers need to focus on adopting technology that focuses on candidate engagement. 

To ensure a positive candidate experience, talent acquisition teams need to look at how they can automate some of their time-consuming tasks so that they can spend more time on candidate engagement. The majority of recruiters claim they spend most of their workweek on sourcing alone. Unfortunately, that does not leave these professionals with much time for other important aspects of the hiring process, such as engaging candidates. With efficient HR software, companies can ensure they stay competitive in the fierce job market during and after the pandemic.

“As the economy rebounds, our data shows recruiters increasingly looking to virtual hiring to widen access to candidates they may not have had access to in the past. Employers are looking ahead to a once-in-a-lifetime opportunity to rebuild a diverse and inclusive workforce, and will need to rely on technology to hire at scale.”

HireVue CEO and chairman Kevin Parker

Job Security and Stability are the Top Priorities

The uncertainty caused by the current economic state has intensified people’s need to seek positions at big, more stable companies instead of startups - mainly because of the potential for greater job security. According to Harvard Business School research, the average size of firms searched by job seekers increased by 25% during the economic crisis. 

Small companies experience a hard time hiring top talent as they have to compete with large corporations. However, it doesn’t mean that there are no ways for startups to win the war for talent. Take-home salary is just one area in which companies compete. Other benefits like health care coverage, flexible schedule, training, and development initiatives may become critical factors in deciding whether to accept an offer. Small companies can use this to their advantage to attract and retain top talent during the economic downturn. 

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