In today’s job market, optimizing the hiring process is more important than ever. Don’t risk losing a qualified candidate to your competition due to an outdated background check solution.
Today’s dynamic job market presents both challenges and opportunities for employers. By gaining insights into the goals and expectations of job seekers, you can take the necessary steps to enhance the appeal of your workplace for both current employees and potential hires. Termed as the Great Resignation or the Great Reshuffle, the transformative shift in workers’ attitudes, which originated from the pandemic, continues to reverberate throughout the labor market.
In 2022 alone, an estimated 4 to 4.5 million people decided to quit their jobs each month, and concerns about a potential recession have not diminished this trend. Unemployment rates stand at historic lows (3.4% as of January 2023), and an overwhelming 96% of workers have expressed their intention to pursue new job opportunities in 2023. So, what are the reasons behind this surge in Americans looking for new jobs? Nearly 90% of executives report higher-than-normal turnover rates, prompting the question of what is causing this attrition. Moreover, the Equal Employment Opportunity Commission (EEOC), an independent federal agency established under the Civil Rights Act of 1964, diligently ensures compliance with certain federal civil rights laws that prohibit discrimination and harassment.
Higher Wages
Higher wages are often a significant motivator for individuals seeking new employment opportunities, and this holds true for job hunters in 2023. According to a survey conducted by Monster.com, nearly half (46%) of potential job-switchers anticipate higher pay due to inflation and the increased cost of living. Furthermore, a recent survey revealed that 90% of respondents would consider changing jobs in the next 12 months for a pay raise, with the majority seeking an increase of 5-20%. However, 90% also expressed that a pay raise at their current job would be sufficient to convince them to stay, while 72% considered leveraging a job offer to negotiate a raise as a top reason for exploring new employment opportunities. To retain valuable employees and attract new talent, it may be necessary to consider raising wages, as many competitors have already done. In 2022, pay saw significant growth across all wage levels, with searches for jobs paying $20 per hour experiencing a 35.5% year-over-year increase as of August 2022. It is worth noting that while obtaining a raise or securing a higher-paying full-time job is one way to keep up with the rising cost of living, inflation has compelled a growing number of Americans to seek second jobs or side hustles. As reported by the Bureau of Labor Statistics, there was a half a million year-over-year increase in the number of people working multiple jobs in January 2023, totaling nearly 7.9 million individuals. Employers within industries that commonly offer part-time or flexible work, such as retail or the gig economy, can benefit from this emerging trend.
Advancement Opportunities
The pursuit of career growth and the acquisition of new skills are driving many individuals to actively search for job opportunities. According to an iCIMS survey, nearly 78% of job seekers consider formal training programs vital when making career decisions, while only 16% are influenced by nontraditional perks like complimentary gym memberships. Insufficient pathways for advancement can lead to challenges for both employees and employers. In fact, 70% of workers who are unsure about progressing in their current roles experience feelings of burnout. Moreover, the survey revealed that 70% of job seekers struggle to determine how they can advance within their current positions, and 42% find it difficult to locate and apply for internal job openings. In today’s professional landscape, career progression is not solely about climbing the traditional corporate ladder. By offering employees opportunities to develop new skills and explore different roles, employers can enhance overall job satisfaction. Additionally, promoting internal job openings and streamlining the application process for existing staff members not only fosters career growth within the organization but also expands the pool of potential candidates.
Improve Benefits
An increasing number of job seekers are motivated to explore new opportunities due to their desire for improved benefits. In fact, more than one-third (37%) of job seekers are actively seeking better benefits and perks. The most sought-after benefits include health insurance, paid time off, and access to a company-sponsored retirement plan. Interestingly, job ads showcasing these benefits have seen an overall increase across all labor categories in the past year. While the availability of luxuries like free lunches and snacks is decreasing in the tech industry, other sectors such as transportation and manufacturing are witnessing a rise in such offerings. As remote work continues to gain popularity, industries where this option isn’t feasible need to consider alternative benefits to attract and retain talent. Consequently, commuter benefits like parking reimbursements, public transportation assistance, and gas refunds are becoming more prevalent in in-person industries like hospitality and restaurants.
Flexible Schedules
The appeal of flexible work options, such as remote work or flexible schedules, is a major driver for job seekers. According to a recent survey, nearly 40% of American workers apply exclusively to jobs that offer remote work, and even if a remote job paid less than a non-remote job, two-thirds of workers would still consider or definitely apply for it. The younger generation, in particular, values the ability to work remotely, with 94% of Gen Z and 84% of Millennials refusing a job that requires full-time, in-person attendance. In fact, a significant percentage of them, 88% of Gen Z and 69% of Millennials, would even quit their job if asked to work in-person full-time. For employers who are unable to provide remote work, offering flexible hours can be a viable alternative. A recent poll found that 94% of desk-based workers desire flexible schedules, while 80% seek the option to work remotely. By granting employees more control over when they work, even if they can’t choose where they work, companies can help reduce commute times and facilitate a better work-life balance.
Will Hiring Slow In 2023?
As layoff fears persist due to the threat of a looming recession, companies are faced with a decision on whether to downsize or expand their workforce in 2023. While certain industries like media and tech are experiencing large scale layoffs, healthcare, retail, skilled trades, and education continue to experience high demand for employees who perform in-person work, allowing for a job-seeker’s market. Despite the possibility of finding better-paying work, a recent survey showed that 62% of American workers would rather remain in a job they dislike than go through the stressful process of searching for another job. The three main issues workers have with job searching are the time commitment associated with finding and applying for jobs, poor communication from hiring managers, and lack of salary transparency. For employers looking to hire in 2023, sharing salary information in job ads, ensuring a smooth job application process, and frequent communication with candidates can give them a competitive advantage.
Hire Faster With ACI Background Checks
The next year might bring new challenges in retaining employees but also opportunities to attract top candidates seeking better opportunities. To become the employer of choice, it is crucial to stay updated on employees’ and job seekers’ preferences and fulfill their needs. In today’s job market, optimizing the hiring process is more important than ever. Don’t risk losing a qualified candidate to your competition due to an outdated background check solution. With ACI Background Checks, you gain access to over 100 screening options along with an easy-to-use platform and automated workflows that save you time and effort. Our dashboard provides quick results and status updates, ensuring applicants stay engaged every step of the way.