The job market has rapidly changed over the last couple of years, and as an employer, it can be hard to keep up. Widespread resignation and lower applicant counts have made hiring and retaining the right people for your team more challenging than ever.
At CareerPlug, we want to make it easier for our clients to hire and develop the right people, and we know that the right hiring process can help employers through these unprecedented challenges. Let’s talk a little about the changes that you should make as an employer in 2022 to get more applicants and turn those applicants into employees that are happy to be on your team.
Job seekers are expecting more
The labor market is undergoing a massive readjustment right now, and job seeker sentiment is driving it. Jobs that were once easily filled (for example, service sector jobs like restaurants, retail, hospitality, etc.) now face an applicant population reluctant to return to work or opting for work-from-home roles for a variety of reasons.
Job openings are at a record high and applicant count is low. Data from our Recruiting Metrics Report tells us the number of new jobs posted using CareerPlug in 2021 increased 49% over the previous year. However, the number of people applying to jobs actually decreased by 30%.
It’s clear that many workers took stock of their priorities in the last couple of years and have raised their expectations of employers. Workers these days are looking for a job that takes their wellbeing into account and helps them maintain more flexibility and a better work/life balance. And as many companies finally implement return to office policies, a lot of workers are leaving for fully remote jobs instead.
Some other things job seekers care about? Professional development opportunities and career progression as well as a company whose values align with their own.
Job seekers’ compensation expectations have changed
Finally, there’s the elephant in the room: Some industries that have historically paid low wages now have a difficult time finding applicants to fill those roles.
Consider restaurant workers, for example, who earn a large portion of their income through tips. Many have been reluctant to return to food service since experiencing the drastic effect something like a pandemic can have on their take home pay and dealing with the stress of unpredictable and ever-changing wages. As a result, millions of restaurant and hospitality workers have left the industry over the past two years in favor of more stable wages in other industries.
But restaurant workers aren’t the only ones. In a recent compensation survey, we found that 55% of all workers are seeking an opportunity to increase their pay in 2022, and of those, 67% said they planned to explore new industries or fields.
As an employer, it can feel like there are less employees out there that actually want to work. But when we take a more nuanced look at what’s happening to the labor market, we find evidence that those job seekers actually do want to work — just for companies that promise increased pay and security, often in different industries altogether.
Which businesses have seen hiring success in 2022?
If you’re a small business owner struggling to fill your roles this year, you’re not alone. It’s happening everywhere.
But the businesses thriving in this moment are those who have changed their hiring practices to put themselves at a competitive advantage. Take for instance, Austin Beerworks, a brewery and tap room out of Austin, Texas, who had this to say on social media:
Similarly, fast-food chain In-N-Out has been hiring and expanding despite the pandemic, thanks in no small part to a higher-than-average pay structure that they’ve used as a recruiting tool for years. The company believes high wages translate to high productivity and low turnover among fast-food workers.
Other companies are taking notice and following suit. Nationwide chains like McDonald’s, have been open about raising wages to remain competitive and attract employees.
How to attract more applicants in 2022
We certainly empathize with small business owners and franchisees who find these job market shifts frustrating and difficult to navigate, especially since you may not have the budget to increase your payroll unexpectedly. So how do you attract applicants in this new world?
Our advice is to lean into the things you can control. Here are a few tips that we hope will make it easier for your business to attract more applicants.
1. Practice pay transparency
We’ve always recommended that employers practice pay transparency by including the compensation range on job descriptions. In our 2021 CareerPlug Candidate Experience Report, we found that job seekers would prefer to learn about compensation sooner rather than later. This becomes even more relevant in a candidate’s job market.
As an employer, you have to be as enticing as possible at the beginning of the hiring process. Candidates will concentrate on opportunities that are upfront about the pay because they don’t want to waste their time trying to guess what an employer might pay.
Make sure they don’t pass on your job opportunity simply because you didn’t advertise compensation in the job posting. And if the compensation doesn’t meet their expectations, then you’re saving your own time by not pursuing a candidate that may not convert to a hire anyway.
You could also go one step further and advertise your compensation and benefits the same way you might market a sale to customers. For example, beloved Texas gas station chain, Buc-ee’s, has long advertised their competitive pay and benefits on signs outside their stores for years with great success.
2. Offer a signing bonus.
Most employers are familiar with employee referral programs, a recruiting tactic in which employees are incentivized to produce high-quality candidate leads in exchange for a cash bonus. Employee referrals are always going to be an excellent source of candidates who convert into hires at a 18 times higher rate than applicants from job boards. But in such a competitive job market, you might want to also consider offering a bonus to the applicants themselves.
If your objective is to make your job posting stand out from competitors — and it should be — then offering a cash signing bonus is a great recruiting tactic. This may be a new strategy for you as an employer, but you’re going to have to get creative to attract great employees to your roles.
When you consider the cost of the time you’d spend recruiting, as well as job advertisements and other recruitment marketing costs, it’s actually not too far-fetched to instead divert some of that budget directly into your new hires’ pockets. It also serves as a signal to other job seekers that a company values talent.
For employers who are nervous about implementing a cash bonus program, you can always add a stipulation that the signing bonus will be paid after a specified probationary period has passed.
Pro Tip: Never include the compensation or the signing bonus in the job title on job boards. Major job boards remove jobs with title modifications. Instead, have a standard job title and attach compensation to the job posting in the appropriate spot.
3. Show candidates that your business is a great place to work.
More than half of job seekers abandon their pursuit of a job after reading negative reviews about a company on employer review sites like Glassdoor and Indeed. If a business isn’t a great place to work, it can develop a reputation that costs them applicants.
It’s really important to control the story you tell about your business and that you let job seekers know you care about your employees. You can use your careers page as a channel to market your employer brand and get candidates excited about working for your company. Ask your existing employees to write or record employee testimonials, which can be a compelling form of social proof for potential applicants.
Add photos and videos of the workplace and the team along with a statement about your company culture, your commitment to their well-being, and any potential growth opportunities. Most importantly: be authentic about who you are as a company and as a manager.
To learn more about building a compelling careers page, check out this video featuring CareerPlug’s Senior Director of People, Natalie Morgan.
4. Actually be a great place to work.
Creating a great place to work starts with supporting your existing team. Your number one recruiting strategy should be retention — especially when you consider that the average cost of replacing one employee can range from one-half to two times that employee’s annual salary!
Regardless of the job market, the best employees will always have the freedom to be picky about where to work. Make sure you don’t lose them to someone else.
To build a retention strategy, make sure you’re doing the following:
- Hire the right people who share your core values.
- Hire people who want to grow with you.
- Give employees a sense of purpose in their work.
- Provide frequent feedback to help employees improve and grow and give them the opportunity to provide feedback too.
- Find out people’s big dreams and motivations and help them achieve what they want. (Start this as early as the hiring process with a “lifeline interview”)
- Develop growth paths or career tracks.
- Find ways to nurture social relationships between employees.
- Create transparent and equitable policies around hiring, pay, promotions, and terminations.
- Communicate openly, even during tough times.
- Consider offering desirable benefits like work from home options and more PTO
The most important thing to remember is that empathy for your candidates will go a long way. Consider their struggles. Recognize what they want and what they need — and do your best to give it to them.
2022 Recruiting Metrics: Benchmark Data by Industry
See how your business’ hiring and recruiting stats compare to others in your industry by downloading our 2022 Recruiting Metrics Report.GET MY FREE PDF COPY