Employer’s Guide to 2023 Staffing
A historic shift in our workforce is starting to unfold. According to the U.S. Bureau of Labor Statistics, majority (about 62%) of our labor force is made up of citizens between the ages of 16 to 65. Naturally, the “Boomer” generation should be approaching retirement, while Generation Zs are entering the professional threshold. However, due to the pandemic’s drastic economic interruption, the amount of people retiring early or not returning to the workforce is at an all-time high, leaving businesses scrambling to find new employment of all ages. As a result of the pandemic, worker’s new demands and expectations are setting the tone for how the hiring process will play out in the new year. It is important for hiring managers to acknowledge and anticipate some common staffing trends that will eventually change the way we view our workforce in the future.
- New Leadership and New Expectations
It’s no secret that generations before us were extremely hard workers. Not only did they build the world power we are today, but they developed the fundamental resources and opportunities for younger generations to thrive. But as we experience societal growth, economically, technologically, and socially, changes within the professional settings must learn to adapt. We are facing a generational transition of leadership and staffing that we have never seen before. Studies show, post-pandemic, many successful organizations are altering their working conditions and compensation based on new top-talent desired expectations for a healthy, happier work experience.
- Work-Life Balance
In order to stay in business throughout the pandemic, many organizations were forced to downsize and acclimate the remaining employees to remote work. For those who were able to adjust to the new normal, these workers now hold more value in a flexible work schedule. With technological advancements and travel convenience, remote and hybrid work is more acceptable, providing an essential motivator to the new job seeker. As seasoned professionals, even the Boomer generation is showing interest in remote work, being that they have spent most of their careers without the option.
- Compensation Transparency
As of January 1st, 2023, states like California and Colorado are enacting salary transparency laws, requiring companies to list salary ranges on job advertisements for work that could be done in that state. The main reason for this change is to protect job seekers by allowing them the leverage to negotiate their earning, close wage gaps and avoid employer discrimination based on race, gender, and age.
- Compensation Increase
Another factor employers should consider is our economy’s rising inflation rate. Job seekers are expecting compatible salaries to keep pace with these historic high rates across all industries.
“Businesses that fail to further increase employee compensation will risk hurting their employee’s quality of life or losing workers to other companies.” https://sba.thehartford.com/managing-employees/hiring/salary-inflation/
Some employers may have to get creative when considering wage increases. Experienced staffing firms like the Remy Corporation, encourage our clients to consider contract work over full-time employment. This is cost effective for employers because they can pay top dollar for quality talent without the risks and expenses of permanent employment. Contract work is beneficial to the worker as well by providing flexible work hours, limitless opportunities, and higher compensation over a shorter period of time.
- Company Culture and Inclusivity
Studies show that younger generations are seeking jobs that can perfectly blend, not interfere with their personal lives. While addressing the desire for a better work-life balance, we are seeing a new trend emerge. Younger job seekers are interested in a company culture that is stimulating, supportive and safe to everyone. Diversity within the workplace has been proven to increase innovation, creativity, problem solving, and overall growth. In turn, individuals who work in diverse organizations turn out to be more open minded, accepting, and collaborative. This trend is also extending to the leadership roles as well. Leaders who are relatable, empathetic, and accountable are showing lower turnover and happier, loyal employees overall.
- Job Hopping
With a better understanding of the new social norms and technical advancements, younger generations can be more adaptable in their career path than older generations. However, with a wider range of skills and knowledge, but less experience, the younger generations are more likely to jump from one job to the next until they find the right fit.
Sixty-nine percent of Gen Zers would switch industries for something that’s better aligned with their interests or values, versus just 40% of boomers.” – https://www.gobankingrates.com/money/jobs/gen-z-vs-boomer-job-seekers-what-each-generation-really-wants/
Therefore, we might see a higher demand for more contract work or short-term requirements in the new year. Hiring contract workers is more cost effective for employers, while meeting all the needs and expectations of the worker. The Remy Corporation is a great solution for finding IT and Workday contract resources for all industries.
The year of 2023 is just the start of this employment revolution. As we make these small changes in our hiring practices, businesses will see better results in work efficiency, high valued workers, and satisfaction throughout their workforce. So, in order to stay competitive, consider implementing these alterations or reach out to experienced staffing firms like the Remy Corporation, who will find the right resources for all your businesses needs.
