Across 14 countries surveyed by LinkedIn, all saw their hiring rates drop over the past year, but employees still hold power due to tight job markets, according to the networking site in its new Global Talent Trends report.
“In many ways, employees still have the power to demand more from their employers when it comes to salary, flexibility and benefits,” LinkedIn chief economist Karin Kimbrough said in the report. But Kimbrough added a note of caution, adding that “this balance of power is likely to even out in the coming months.”
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In short, the hiring rate is expected to slow from the historic highs of 2021, Kimbrough said.
Her advice to talent leaders is to look within. “Continue to understand the skills of your employees and the skills your business needs. This understanding will help you weather economic ups and downs and job market volatility.”
Workers brace themselves for economic decline
Employees are aware of the “sharp slowdown in economic growth in regions around the world,” LinkedIn principal economist Guy Berger said in the report. His advice to talent leaders is to mitigate the uncertainty for their employees as much as possible.
This could mean doing more with less and “considering relatively inexpensive, high-value benefits that you may have overlooked before.”
Not surprisingly, according to the report, job seekers still see pay, work-life balance, flexible working arrangements and training as their top priorities. Increasingly, US-based LinkedIn job postings hit an all-time high in February 2022 at 20% of all US jobs, according to the report. However, they attracted just over half of all applications.
That all changed in September, when remote job postings fell to 14% of all jobs but received 52% of all U.S. job applications, the report said. Although the US is leading the remote job trend, these types of jobs are also popular around the world.
Yet, despite economic uncertainty, “people still value two areas of working life that have received a lot of attention since the pandemic began: work-life balance and flexible working arrangements,” said Jennifer Shappley, vice president of global talent acquisition at LinkedIn Shappley , in the report. “I expect these two traits will remain top talent for years to come.”
Shappley advises talent leaders to understand these drivers and listen to employees to ensure they are developing hiring and retention strategies that attract and retain top talent.
How to retain employees through career development and advancement
Internal mobility can increase employee retention, the report says. In fact, it has been found that employees who have made a transfer are 75% more likely to stay with a company after two years than those who have not made a transfer (56%).
In terms of industries, financial services are #1 in retaining employees through internal mobility, according to the report. Meanwhile, retailers are struggling to retain employees with or without internal mobility, the report said.
Regardless of economic conditions, it’s no secret that people want to learn and grow at work, Linda Jingfang Cai, vice president of talent development at LinkedIn, notes in the report. If companies don’t address this, in most cases people will leave “the moment they find a better opportunity elsewhere.”
Jingfang Cai’s advice? “Give employees more ownership of their career paths within your company,” she said. “Start the conversation with them about their opportunities for learning, growth and—ultimately—internal career transformation on day one.”
Continuing the theme of looking inward to maximize the full potential of their workforce, employers are actually taking a closer look at sourcing vacancies internally, Hari Srinivasan wrote in a blog post announcing a new set of features that LinkedIn adopts to respond to current business needs. Already 25% of recruiters at LinkedIn’s largest clients use tools on the site to support internal hiring, he said.
When top and tenured talent leaves companies, “we feel the impact more than ever,” Srinivasan wrote. “The loss of skills, knowledge and relationships tends to hit hybrid and remote teams particularly hard.”
According to Srinivasan, one of the main reasons for employee turnover is the lack of advancement opportunities. “When employees feel their skills are not being put to good use in their current job, they are 10x more likely to be job hunting.”
To address this, leaders need to focus on internal mobility and make it a part of their holistic hiring strategy, he wrote. “This is not just about making internal mindset the norm — encouraging recruiting teams and hiring managers to draw on the skilled talent pool they already have to fill open positions — but also creating internal growth paths that align with the career aspirations of the people employees agree.”
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