Hiring Managers Coping with New Hiring Challenges

The hiring landscape has experienced a dramatic metamorphosis in recent years, characterized by the seismic waves of the Great Recession,  compensation adjustments, and the expanding skills gap, all of which present novel challenges for hiring managers.

McKinsey & Company's recent study underscores the magnitude of this change, revealing that 40% of employees are contemplating leaving their positions within the next six months. The Great Resignation, a phenomenon driving millions to seek better opportunities, stands as a significant factor contributing to this unprecedented wave of workforce mobility.

In this blog post, Aniday will explore the new challenges that hiring managers are facing and discover how they are coping with the new challenges. We will also look at some emerging trends and innovative approaches to addressing hiring challenges.

What’s Making Hiring so Tough Right Now?

Determining the appropriate compensation poses a significant challenge. As projected by SHRM, employees can expect an average base salary increase of 3.5% in 2024. This underscores the vital importance for hiring managers to have competitive salary packages ready, a pivotal factor in both attracting and retaining top-tier talent. Notably, 75% of hiring managers believe that candidates now place increased demands on benefits compared to pre-pandemic times.

Sometimes, companies have budget constraints, offering salaries that might not match what others in the industry are giving. Attracting top talents may be a challenge since offering competitive pay is a price to pay if a company wants to secure the best individuals for the team. 

In today’s day and age, jobs require highly skilled individuals, which makes it tough for some companies to search for qualified candidates. The rapid changes in industries and job requirements make it even trickier. The result? Companies face the difficulty of finding candidates with both essential skills and a good fit for evolving job needs. As the candidate pool shrinks, hiring managers must get creative to attract and retain individuals who meet high company standards.

How Are Hiring Managers Coping with the New Challenges

In the current landscape, savvy hiring managers are implementing a variety of innovative strategies to tackle the increasingly complex challenges in the recruitment process.

1. Embrace Remote Work and Flexible Employment Arrangements

An increasing number of employers are adopting remote work and flexible employment structures to both attract and retain top-tier talent. This shift not only provides job seekers with a broader range of opportunities but also ensures better alignment with their individual needs and lifestyle.

Consider Upwork, a platform seamlessly linking businesses with freelance professionals globally. This revolutionary approach empowers businesses to tap into the talent they require, irrespective of geographical constraints.

Furthermore, embracing remote work and flexible employment arrangements not only facilitates the acquisition of necessary skills but also enhances employee morale and productivity. The autonomy provided by working from home or having flexible schedules often fosters heightened engagement and improved work-life balance among employees.

2. Leverage Technology to Streamline the Hiring Process

At the forefront of modern recruitment, managers are capitalizing on technological advancements. The integration of sophisticated tools, such as Applicant Tracking Systems (ATS) and Artificial Intelligence (AI) for candidate screening, is revolutionizing and optimizing the recruitment workflow. This tech-driven evolution ensures heightened efficiency and precision in candidate selection.

3. Broadening Talent Pools with a Focus on Diversity and Inclusion

Understanding the strategic importance of diversity, managers are diversifying their talent acquisition channels. For example, they might leverage social media platforms like LinkedIn, where they actively engage with diverse professional communities, share inclusive employer branding content, and participate in industry discussions that highlight their commitment to diversity and inclusion. This not only broadens the talent pool but also contributes to building a more inclusive and representative workforce.

4. Crafting an Exceptional Employer Brand through Storytelling

Recognizing that a strong employer brand is a magnet for top talent, managers are adopting storytelling as a powerful tool. Through compelling narratives, they showcase the company's history, values, and the human side of its operations. By sharing success stories, employee testimonials, and impactful experiences, organizations create an emotional connection with potential hires. This storytelling approach goes beyond facts and figures, allowing prospective employees to envision themselves as part of a thriving and engaging work culture.

5. Elevating Employee Engagement and Retention Strategies

Beyond the recruitment phase, managers are placing a premium on employee engagement and retention. Establishing a robust feedback system ensures continuous communication between managers and team members, fostering a culture of openness and growth. Additionally, implementing a recognition program acknowledges and celebrates the contributions of employees. Whether through regular feedback sessions, employee-of-the-month awards, or personalized appreciation, these initiatives contribute to a positive work environment, boosting morale and fostering a sense of belonging.

* Additional tips

In addition to the strategies listed above, hiring managers can also take the following steps to cope with new hiring challenges:

• Diverse Interview Formats: Online interviews, facilitated through platforms like Zoom or Skype, or phone interviews, breaking down geographical barriers and expanding the talent pool, particularly in the context of remote work.

• Conduct regular salary reviews: Make sure that your salaries are competitive with the market rate. You can do this by conducting regular salary reviews and benchmarking your salaries against those of other companies in your industry.

• Deliver a holistic benefits package: Beyond just competitive salaries, ensure a comprehensive benefits offering. Encompassing health, dental, and vision insurance, along with life and disability coverage, incorporate paid time off and retirement savings plans to provide a well-rounded package for employees.

In Summary

The challenges of hiring are complex and ever-changing. Aniday hopes that this guide on How Hiring Managers Are Coping With New Hiring Challenges will help hiring managers develop strategies to attract and retain top talent.