During the epidemic, the working world experienced rapid recruiting and rising compensation patterns in response to the Great Resignation—the voluntary departure of millions of employees. But now, things are cooling down, resulting in a phenomena known as the "Great Hesitation."
The Great Hesitation has emerged as a cautionary response to the economic uncertainties that have followed the pandemic. Companies, once eager to fill positions left vacant during the Great Resignation, are now adopting a more measured approach to hiring. This shift is not just about caution; it's a strategic recalibration of workforce needs in light of changing market dynamics and potential economic headwinds.
Companies are reclaiming the power balance in the job market, therefore many are waiting to see what happens with talent acquisition. One of the primary reasons for the move is a renewed emphasis on cost-cutting. While this is a valid worry, there are ways for firms to meet their talent demands while retaining a focus on the bottom line.
However, this hesitation in hiring doesn't mean that companies have stopped growing or innovating. Instead, they are reassessing their talent needs and exploring alternative strategies to maintain productivity and competitiveness. This includes investing in upskilling current employees, leveraging technology for increased efficiency, and exploring flexible work arrangements to attract and retain top talent without necessarily increasing headcount.
7 Strategies For Making the Most of Talent Acquisition
Organizational leaders cannot predict when the Great Hesitation will end. In the interim, these seven tactics will help them make the greatest hiring decisions possible.
Focus on Skill-Based Hiring.
Focus on candidates' skill sets rather than their previous work experience or educational backgrounds. Do they have the necessary talents to succeed in the given role? This strategy to hiring allows you to extend your prospect pool. Prioritizing skills also allows you to train and develop current personnel in the unique manner that your firm operates.
Find Alternatives to External Hires.
Bringing on a new hire may be dangerous, time-consuming, and expensive. This is due to the high expenditures connected with recruitment and onboarding, as well as the danger of having to restart if the new hiring does not work out. If you want to fill roles at a low cost, try internal mobility initiatives or recruiting ex employees who require less training.
Use Talent Intelligence.
Analyzing the talent landscape is critical for gaining a thorough understanding of market trends, candidate habits, and future workforce demands. This knowledge enables you to better predict the type of talent you require, where to find them, and how to attract them to your firm. You can therefore minimize recruitment costs by streamlining your hiring process and retaining personnel more effectively.
The use of talent intelligence has become increasingly sophisticated in recent years. Companies are now leveraging big data analytics and artificial intelligence to gain deeper insights into talent pools, predict future skill gaps, and even forecast employee turnover. This data-driven approach allows organizations to make more informed decisions about their talent acquisition strategies, potentially saving millions in recruitment costs and improving overall workforce productivity.
Consider Offshoring.
Offshoring some job responsibilities to workers in other nations may drastically lower hiring costs. For example, you might be able to hire workers with lower salary expectations. Offshoring can also increase diversity because it allows you to access into the global talent pool and discover competent workers with particular talents that may not be available locally.
Bring in the best/right technical solutions.
Recruitment tools can help you find experts with the necessary abilities and expertise more efficiently. For example, you can utilize AI to assist in creating compelling job descriptions and screening questions that target and vet ideal candidates. But a word of caution: To thrive, you must strike a balance between technology enablement and critical human contact.
Hire the Best Person.
This may seem apparent, but hiring the greatest person available is important to the overall success of your company. The talent market is brimming with excellent and promising candidates, so don't take a chance by overhiring. Even if you have to hire someone who is overqualified, it is preferable than hiring several people who will eventually need to be replaced.
Don't wait.
As we move forward, market and economic volatility will undoubtedly continue to have a substantial impact on the hiring landscape. That is why it is critical to assess your workforce plan on a frequent basis to ensure that your business imperatives are fulfilled with the right personnel in the right places, equipped with the tools they require to thrive. Sometimes that involves taking a gamble to ensure that your hiring goals are reached during times of uncertainty. So, even if your workforce plan isn't completely set, you can start recruiting.
While the "don't wait" advice might seem counterintuitive during the Great Hesitation, it underscores an important point: companies that pause hiring entirely risk falling behind when the market inevitably shifts. Forward-thinking organizations are using this period of hesitation to strategically position themselves for future growth. This might involve hiring for critical roles that drive innovation or seeking out talent with diverse skill sets that can adapt to rapidly changing business needs. By maintaining a measured but active approach to hiring, these companies are building resilience into their workforce strategy.
Even if it is impossible to forecast how the US economy will perform in the near future, it is critical to constantly evaluate your business and how the proper skills will help you develop and thrive. Those who take a "wait and see" approach to saving money now will suffer long-term consequences.
