The pandemic changed the labor market. now Employers also need to change.
A year into the great resignation, job vacancies May remains high near record highs with 11.3 million vacancies, compared to 9.6 million a year ago. Unemployment rateMeanwhile, strength remains at 3.6 per cent. Businesses have not adapted to this new reality when it comes to hiring. Employers still rely on “traditional levers to attract and retain people” new research From McKinsey & Company. The management consulting firm argues that this approach will no longer be sufficient to fill your open positions.
Instead, you should think about your workforce more long-term, according to a McKinsey study that found it to be the single most important factor in determining employee retention. Career growth and advancement. Among those who had left jobs within the past year, 41 percent cited lack of internal opportunities as their main motivation for leaving, while 34 percent blamed reckless and apathetic leaders.
“How influential a bad boss can be to put people off cannot be overstated,” the report said. “While in the past an attractive salary could keep people employed despite a bad boss, this is much less true now than it was before the pandemic.”
Nevertheless, compensation remains a significant factor in employee retention and was the second most cited reason for leaving.
According to McKinsey, the labor shortage shows few signs, as 40 percent of American workers plan to quit their jobs in the next three to six months. As more data comes in, the numbers make it clear that the great resignation is indeed a great reshuffle. Workers are not just quitting jobs. Two-thirds of people who have left jobs in the last two years have completely shut down industries.
In the midst of this realignment, McKinsey recommends remaining flexible during the hiring process. Personally tailor your proposal to the needs of the potential hire. Think outside your industry and expand your scope of what is considered relevant experience. “Companies can no longer assume that they can fill vacant slots with workers who have just left,” the study said.