The past few years have seen several economic developments that have impacted recruitment and hiring, and the record vacancy rate shows that most businesses need to make plenty of hires. In addition, events like the global financial crisis have made it difficult for companies to find the financing needed to expand their businesses and hire new employees. Such developments have resulted in a rise in unemployment and increased job competition.
What economic developments in 2022 impacted recruiting and hiring? And how can companies adjust to these developments? This article will answer these questions with details on how companies can build a response plan.
Unexpected economic developments in 2022 that impacted recruiting and hiring
Here are major unexpected economic developments in 2022 that impacted recruitment and hiring:
Global Inflation
Global inflation is increasing, and according to the IMF, inflation is expected to reach 6.6 percent in advanced economies and 9.5 percent in emerging and developing markets this year. It is also expected to remain high for an extended time. As a result of supply chain disruptions and extraordinarily tight labor markets, inflation has also widened in several economies.
As individuals try to change positions to get a bigger pay raise, mostly due to concerns about the cost of living, inflation exacerbates the problem. The main obstacle is, therefore, talent retention. Since simply raising wages is often not feasible for businesses, many organizations are turning to improving their broader benefits package as a solution.
Globalization of the Workforce
In the past, businesses typically recruited workers from a relatively small pool of potential candidates. However, thanks to the globalization of the workforce, businesses now have access to a much larger pool of potential candidates.
Unfortunately, among the very good candidates, there are also some bad ones. While companies have access to more candidates, it can be more difficult to screen applicants and find the right person for the job.
How Can Companies Adjust to Economic Developments?
To stay ahead of the competition, companies must be aware of the latest economic developments and adjust their strategies accordingly. Companies can focus on the following:
1. Create a culture of creativity and innovation
Developing a fantastic workplace culture coupled with a flexible work style that promotes a good work-life balance will impact employee retention. An innovative and creative culture will open up opportunities for businesses to improve their organization and recruit ambitious employees.
2. Be Flexible
A flexible hiring process allows you to adjust to different needs. It enables you to consider whether your requirements have changed since the last time the position was filled or whether the new project would best be handled with a mix of permanent and temporary staff. This way, you can accelerate your recruitment strategy to bring in the right talent at the right time with full-cycle recruiting.
3. Offer training and development opportunities
With the ever-changing job market, companies can adjust by guaranteeing employee training and development opportunities. This equips the company and employees with the latest skills and knowledge needed to succeed. It also signals to potential recruits that the company is an attractive place to work, which can be productive in times of economic uncertainty.
4. Adopt the best hiring technology
The goal is to use the right process and the best technology to fill a position as quickly and economically as possible. Technology helps adjust to economic developments by making the search for the right person easier and making recruiting and hiring more efficient.
By taking these steps, companies can weather economic downturns and come out stronger on the other side.
Partner with Comeet for World-class Recruiting
Managing your entire hiring process is significantly easier when you have access to a single source of tools and capabilities. Comeet helps rapidly expanding companies find, acquire and hire great people. Full-cycle recruiting has never been easier with our on-demand approach to unrivaled recruiting and world-class sourcing. Schedule a demo with Comeet today.
