The Current State of Recruitment
Updated: Apr 6, 2022
Prior to the pandemic, remote work, although not completely unheard of, was rarely seen. For employees who were able to secure a remote position, it was at a price- and the cost of that was earning a lower salary. Fast forward to over a year and a half into the pandemic, this is no longer the case.
Employers are also no longer able to expect to pay employees less because they are offering flexible work solutions, especially at a time where many companies are so focused on growing their teams, competing for talent in what is now a global workforce (thanks to remote work). Companies will need to offer both higher salaries as well as flexible work options if they intend on acquiring the best applicants for open positions. In fact, the pandemic has led to upskilling in many workforces that may have driven up compensation. Employees had to adapt to new technologies and develop their skills to be able to handle the same jobs working at home, without all the tools and equipment they had available in office. Not only were employees finding themselves restructuring to complete the work, but many organizations had to begin to shift work being done by various teams to adapt to new, or higher, customer demands driven by the pandemic. This means- not only is the rise in compensation necessary to stay competitive, but in most cases, it is deserved.
According to Pay Scale, 73% of organizations are concerned that remote work will change the competitive landscape but 81% of organizations do not even have a compensation strategy that encompasses remote employees yet. The key to a smooth transition is communication. It is important for businesses to be honest with staff, explaining that a new guideline is being put into place, because of the pandemic, to better align with the new world of work. Over-communicating during times of uncertainty is critical for building trust amongst your teams.
The framework for a new remote work policy should account for geography, experience, and skill set. For example, an employee living in Silicon Valley may need a salary adjustment as their cost of living is a lot higher than an employee living in the Midwest. Reviewing policies, guidelines, and practices will be key when determining everything from telecommuting to gym memberships to performance reviews in the new world of work. It is never a one-size-fits-all approach when it comes to managing people. For instance, Innosphere’s benefits initially consisted of a GoodLife gym membership for all employees. However, with a remote workforce now, we realize that not everyone has access to a GoodLife gym. Therefore, we have adjusted the fitness allowance to include any gym with an annual membership to accommodate our employees. It is important to remember that larger companies with deep pockets will be able to afford to maintain pre-pandemic compensation levels despite geographic moves, even after the pandemic. Talent wars will remain, and to retain top-talent, bigger companies will pay up. Competitive rates will be used as a retention tool and the reality is that larger companies may have the edge in the new landscape for a more diverse and wider talent pool.
As many know, there is currently a worker’s shortage, and this is a big factor in the competitive talent pool. The demand for Recruiters is at an all time high and it has even surpassed pre-pandemic levels. In fact, Recruiter jobs have grown even faster than the job market itself in 2021. To put it into perspective, LinkedIn’s data shows more Recruiter jobs posted than Software Jobs with 6.8 times more recruitment job postings in June 2021 compared to June 2020. This shortage has put a strain on Recruiters, especially Tech Recruiters. Recruiters are finding it difficult to engage with ‘Techies’ because in this current state, they are ‘just another recruiter’ in their LinkedIn inbox.
At Innosphere, LinkedIn has always been our approach when it came to our proactive recruitment process, but with this market, it simply isn’t enough. Pre-pandemic, we were able to utilize networking events to recruit, and though things have come a long way since March 2020, we do, indeed, find ourselves still in the midst of a pandemic, keeping networking events virtual. As mentioned in a previous blog, virtual events have yet to effectively replace in-person events and the value they bring, so here we find ourselves, maximizing the tools made available to us, ensuring that we are doing all that we can at Innosphere, offering competitive rates and retaining top-talent.
Even with all our efforts, the recruitment situation remains at a standstill. Our hope is that as restrictions fully ease up in Spring 2022, in-person events will be back in session, and we will find more success in our recruitment efforts.