Missy Ragsdale, Senior Principal and Director of Human Resources for Populous.
Multiple factors are driving the trend
The cause for this problem isn’t simple or singular. It begins with a shift in how people are thinking about employment and the way it interacts with personal factors. Compensation is always an issue, but so is flexibility. Some employers are seeing a general sense of wanderlust; employees are disenchanted with their careers and willing to take the risk of exploring alternatives.
Some say it boils down to low labor force participation. It was already low before the pandemic. Yet the high burnout rate, a proliferation of mental health issues, family management issues and higher unemployment benefits made people more willing to sit out. Add to that the skill shortage, especially in technical areas, and you have an extremely hot market with some candidates having 10 to 15 opportunities to compare.
Creative strategies can help
On the recruitment side, employers have found they must get better at the whole candidate experience:
Make more one-on-one contacts
Give current employees greater incentives for using their networks to generate referrals
Keep candidates highly engaged during the process
Interview and make decisions faster
Even taking extra care to contact rejected candidates can go a long way toward building your reputation as an employer of choice.
When it comes to retention, our panelists said they see employers putting more emphasis on helping employees understand the value of their benefits – with benefits statements, for example. They also emphasized the importance of more frequent one-on-one feedback to reinforce employees’ decisions to stay.
Creative hiring incentives, including signing bonuses
Changes to the hiring process, including assessments
The lure of remote work, student loan repayment, childcare, unlimited PTO, profit sharing and other perks
About The Author
Dan Harrison Email
As Senior Vice President, Benefits, Dan has more than 30 years of experience in employee benefits. He specializes in employee benefits, consulting, communication and brokerage services for mid-to large-sized clients. Dan started the employee benefits practice at The Miller Group in 2006 and continues to provide proactive strategies to clients.