Since the pandemic began in 2020, many people have unwillingly lost their jobs and source of income. Some even resigned due to the lack of pay or employee benefits. In 2021, mass resignations happened worldwide. This phenomenon is known as The Great Resignation.
The Great Resignation began when the economy slowly recovered from the pandemic. If you believe mass resignations contribute to more talents in the job market, think again. The Great Resignation has caused a talent war.
What is a talent war?
The talent war is the competition between recruiters to hire good quality talents. The war for talents has existed even in the late 90s, so it’s not a foreign phenomenon. However, the talent war has sparked again on a larger scale due to the pandemic.
Employers now have to change their recruiting strategies or risk losing talents. In order to win the talent war, you need to first recognize the root cause of this issue.
Causes of Talent War
- The rapid increase in small and medium-sized companies
- Job mobility drives employees to explore other job opportunities
- Lack of interest in traditional jobs among the younger generation
How does the Talent War affect your hiring?
You may think you will have a larger pool of talents to fish from with mass resignations. In reality, that’s not the case. Many companies are struggling to find the right talent while tending to their company’s needs. You may struggle between adaptability and staying true to your hiring norms as an employer. We’ll show you how the talent war affects your business.
1. Talent shortage
The key driving factor of this talent war is that everyone is struggling to find the right talent. Finding the perfect talent nowadays is like finding a purple squirrel. It’s just almost impossible to find a candidate with a proper skill set, relevant educational background and suitable qualifications.
As job roles evolve rapidly through the years, the skill set required of talents has rapidly expanded as well. As there are many talents out there with a skills gap and lack of experience, you may find yourself struggling to meet the right candidate for your vacancy.
2. Higher demands from talents
Another factor that drove the Great Resignation was the lack of benefits given to employees. As an employer, hiring post-pandemic on top of the talent war will be challenging because talents will be demanding more benefits.
Talents are looking for employers who would prioritise work-life balance on top of sufficient wages. Some company benefits known to be key decision swayers are hybrid work opportunities, allowances and mental health benefits. If these benefits aren’t part of your hiring process, you might struggle to attract talents.
3. High brand competition
Talents these days are inquisitive. They do background research on their next employer via sites such as Glassdoor and LinkedIn. With the rising importance of social media, companies across the globe are now driven to create a lasting presence online.
By showcasing your company culture online, talents can see what your working environment is like. Top talents would be more inclined to accept offers from your company if you’re able to show them your best practices through your strong social media presence. However, you have to be mindful of any negative press that you may be associated with. As the saying goes, what goes on the internet, stays on the internet.
Here’s how you can win the talent war
Now that you know how the talent war could affect your business, here’s what you can do to win over the talents!
1. Provide sufficient benefits on top of wages
While some may think that wages alone are sufficient, the pandemic has proven otherwise. A great way to win this war for talents is to provide good employee benefits such as:
- Paid caregiver leave
- Career development opportunities
- Childcare assistance
These benefits show that the company prioritises the well-being of their employees. You could attract top-tier talents by providing a working culture where their emotional and physical welfare matter.
2. Upskill or reskill your workforce
Providing a high salary without any room to grow won’t retain talents in the long run. Talents are looking for jobs that provide opportunities to grow their skills, either by upskilling or reskilling.
Employee upskilling helps you to be on top of your competitors by attracting new talents and improving staff satisfaction. Furthermore, you don’t have to hire talents with upgraded skills as you already upskilled your existing staff. Hence, you may be saving yourself a high hiring cost in future.
3. Implement the hybrid work model
Talents are now prioritising their health and convenience. The pandemic has proven that work can still go on virtually. It’s no longer a priority to work in the office. Plus, not everyone prefers to work from home.
So, how can you cater to both variations? This is where the hybrid work model comes in. Hybrid work is the mix of working onsite and also working remotely.
You might worry that the productivity of new employees decreases when they are not in the office. However, digital tools help employees work together whilst working from the comforts of their homes. Some of the common digital tools used by companies today are:
All in all,
As the economy picks itself, it’s normal to face these recruitment challenges. However, it’s always good to keep yourself updated with the latest recruitment trends and what talents want in this new economic climate. To be on top of this talent war, find out how Recruitopia can help you source talents through referral recruiting!