The last two years have seen a marked shift in the employment market, talent acquisition and candidate sentiment. As a result, recruitment strategies have had to adapt to new models of work, the demand for different skill sets and how to best appeal to top talent. 

Essentially, hiring practices that were the norm in a pre-pandemic world are not as effective as they once were, and with candidates still in short supply organisations will need to rethink traditional approaches to hiring and talent development in the coming year. Complacency to adapt could cost employers the competitive edge. 

Here are seven of the major hiring trends organisations can expect to see this year that have the potential to help you when it comes to attracting top talent. 

A candidate-driven market 

Data from the Australian Bureau of Statistics (ABS) revealed that as of the second quarter of 2021 there were 362,500 job vacancies in Australia, up from 288,700 in the first quarter of the year. This is the highest number of vacancies ever recorded by the ABS. 

It will likely come as no great surprise that the market will continue to be candidate-driven, given the relative return to normalcy for many industries and the continued restrictions on international borders. This means that organisations and Hiring Managers will need to work harder to stand out and attract candidates in 2022. 

We can expect to see a more creative range of recruitment strategies, whether that’s sourcing tactics, more referral programs or data-driven recruitment marketing. Employers will also need to put their best foot forward with regards to branding and enhancing the candidate experience. 

Incentivising the workforce with an appealing Employee Value Proposition

The pandemic has created a sizeable shift in employees’ attitudes and values, and organisations that ignore this will face challenges when it comes to attrition and attraction.   

More than ever, candidates are wanting jobs that gives them an opportunity to make a difference to society. In fact, a survey by Accenture found that an employee’s sense of purpose or impact on society is the second-most important criteria for young talent when considering new jobs.   

Perhaps one of the biggest considerations for organisations when reassessing their EVP is the resounding call from employees for more flexibility within their work. According to a global study conducted by PwC, three quarters of Australians say their ideal work environment is a mix of remote and in-person working, a statistic that would be remiss to ignore in 2022. 

Mental health support, recognition and diversity and inclusion are also increasingly important factors for candidates when looking for job opportunities. We will likely see these becoming more prominent within organisations talent attraction strategies and branding. 

Focus on diversity and inclusion 

As mentioned above, many candidates are wanting to work for a company that values diversity and inclusion. According to the Harvard Business Review, 76 percent of employees said a diverse workforce is an important factor when evaluating companies and job offers, and they will actively ask questions about diversity targets and strategies. 

Furthermore, diversity and inclusion benefit organisational innovation, productivity and retention, something that has become increasingly apparent to employers and reflected in the 71 percent increase in diversity and inclusion roles, like “Chief Diversity Officer,” in the last five years. 

As such, we can expect a continued focus on D&I in 2022, and businesses will turn to technology such as AI and workplace assessment tools to remove unconscious bias in the recruitment process and build more diverse workplaces.   

Hiring for soft skills

According to a study by Deloitte Access Economics, soft skill-intensive occupations will account for two-thirds of all jobs by 2030. So while hard skills are indeed important, it is soft skills that are being recognised as potentially having more long-term benefits for organisations. 

Soft skills, such as leadership, communication and adaptability are much harder to teach than technical skills, and are also strong drivers of productivity, cooperation and innovation. In fact, the same study found that having employees with more soft skills can boost organisational productivity enough to deliver revenue gains of over $90,000 per year. 

Soft skills are also associated with talent retention, as emotional judgment is linked with lower turnover. This, in turn, results in less hiring costs for businesses. This year, as organisations look at strengthening their retention strategies and bettering company culture, certain soft skills will become highly sought after. 

A growing focus on retention and upskilling strategies 

Not only are employers facing challenges when it comes to attracting talent, but also retaining their current workforce. Employees are quitting their jobs at such a rapid rate in what has become known as “The Great Resignation”. According to a McKinsey study, 40 percent of the employees in the U.S. said they are at least somewhat likely to quit in the next three to six months. Australia has also experienced an increase in resignations, with a large number of people choosing to exit the workforce during the pandemic. 

With organisations struggling to hire new talent, holding onto the employees you already have – who already understand your organisation’s processes, products and systems – will be vital. To do this, organisations should consider building tailored retention strategies based on the current demands and values of the workforce.   

Furthermore, with 87 percent of employers saying they are struggling to fill roles due to a skills gap, upskilling and reskilling current employees will likely be a high priority for companies in the coming year. In November 2021, job listings were up by over 51 percent compared with November 2019 according to a Seek Employment Report, while applications were down almost 10 percent.   

By providing the current workforce with relevant training, employers will keep employees engaged, thus aiding in retention and minimising the need for as many new hires. 

The virtual recruitment process is here to stay 

Though many employees around Australia have begun the return to the workplace, even if just in a hybrid capacity, it has become clear that virtual recruitment is here to stay. There are benefits to this for both employers and employees. 

Firstly, in order to source candidates and fill skills shortages, Hiring Managers are needing to cast their net further and embrace the notion of a remote and hybrid workforce. Such a shift eliminates geographical barriers to hiring, allowing organisations to access a greater talent pool – something that will be of significant benefit as the candidate shortage continues. 

Secondly, employers are beginning to understand the benefits of virtual recruitment with regards to both efficiency and safety. In-person interviews can take up a lot of time and resources while virtual platforms can cut this down significantly and streamline the process for your teams. With Covid-19 variants such as Omicron becoming more prominent within the population, virtual recruitment allows for a much safer interviewing and screening process for all involved. However, it is essential that recruitment processes are designed effectively to mitigate discrimination and ineffective outcomes. 

If you’re looking to hire new staff in 2022, partner with Bayside Group’s specialist consultants. With industry knowledge and expertise, our team understands the specific challenges, requirements and opportunities impacting your business. Contact us today to find out more.