5 Tips for Navigating the ‘Great Resignation’
CoAdvantage-The so-called Great Resignation isn’t quite as unusual as it seems – high quit rates are actually common during periods of rapid job creation – but that doesn’t mean it hasn’t been a serious headache for employers. With so many workers switching jobs, and some sectors (hospitality and healthcare in particular) seeing outright labor shortages, the Great Resignation has created recruitment and retention problems for companies of all sorts. It has also forced employers to compete in a much more competitive labor market. What can employers do to improve their chances of finding and keeping top talent? Here are our recommendations.
1: Make sure your baseline requirements match not only the job but the realities of the labor market.
In labor markets with higher unemployment rates, companies have plenty of potential candidates, so they can elevate the baseline requirements. In fact, not only does that help them land higher quality talent, but it also reduces the total number of applications to keep the recruitment process manageable. However, in today’s market, if you don’t update those expectations and requirements to match the fact that it’s applicants who have their pick of job roles, it’ll make it harder to fill open positions. Online magazine site Slate writes, “That resistance to adapting to new conditions seems to lie at the heart of what’s happening in the market. Employers are still operating as they did a decade ago, without considering how they might need to change.”
2: Make sure you are competitive in your salary and benefit offerings.
If you’re a smaller business and are finding it difficult to match the benefit and compensation packages of larger competitors, again, consider a PEO. One job applicant told Slate, “I recently went through a job search, and it was interesting. I received an offer from every interview—one actually called while I was on the way home. What some employers were offering is still laughable though.” Part of the issue here may not be unwillingness but inability. Smaller companies in particular can struggle to offer compensation and benefits comparable to enterprise offerings. In this case, get help from a Professional Employer Organization (PEO), which makes enterprise-grade services available at economy-of-scale pricing perfect for small and midsize businesses.
3: Update your recruitment procedures and processes.
Like everything else, there’s a good chance most companies are still following recruiting processes that fit the pre-pandemic market but struggles now. If nothing else, if you’re desperate for talent, act like it – show some urgency in processing and responding to applications. It’s been shocking how many employers say they’re facing critical vacancies but don’t act like it. Your recruitment processes should reflect the importance of the placement.
4: Be patient and persistent.
The reality is that employers are simply at a disadvantage in the current labor market, especially within specific fields. You can do everything right – competitive compensation, perks, great benefits, treating your candidates and employees well, etc. – and still, struggle to place candidates. Just keep at it.
5: Get help.
Recruiters and PEOs are subject to the same tight labor market as employers, but they do offer one major advantage: their focused, dedicated expertise. Especially for smaller and midsize businesses where hiring is handled directly by managers and owners instead of a fully staffed HR department, getting outside help can spell the difference between successfully filling a role and dealing with an ongoing vacancy.
CoAdvantage, one of the nation’s largest Professional Employer Organizations (PEOs), helps small to mid-sized companies with HR administration, benefits, payroll, and compliance. To learn more about CoAdvantage’s ability to create a strategic HR function in your business that drives business growth potential, contact us today.