Here are some of the salary and hiring trends that should be on your radar — such as compensation expectations, loyalty imbalances, candidate “ghosting,” and more.
The Great Resignation of 2021 has rippled into 2022 major waves. PR Newswire notes that offering competitive salaries and narrowing in on your hiring practices is more important now than ever before. Job seekers are searching for a wide pool of opportunities and have their pick of which businesses will meet their needs most accurately.
With a third of employees surveyed by 24Seven saying they plan on switching jobs within the next year, here are some of the top hiring and salary trends you need to be aware of for 2022.
Compensation increases and expectations
Better perks and benefits are just the tip of the iceberg for job seekers today. The 24Seven survey respondents report that they expect a raise in 2022 or they will likely change jobs.
Salary expectations are rising not only because of a challenging past couple of years but also because of the rising awareness of income imbalances versus the cost of living and inflation. The Wall Street Journal (WSJ) has reported that while wages have increased over the past couple of years, inflation continues to increase costs.
WSJ writer Judge Glock reports that “wages don’t spiral up during inflation; they spiral down as higher prices eat away paychecks. The dollar amounts on paychecks will rise, but not fast enough for their real value to outpace inflation.” Unfortunately, wages increase much more slowly than other costs and therefore the imbalance continues for employees.
With 22% of survey 24Seven survey respondents reporting they are dissatisfied with their current salary, it’s time to get negotiating.
How to negotiate compensation
Knowing how to negotiate compensation with your team members in a way that makes them feel heard and valued is an essential skill to have as a manager.
The conversation will come up whether you’re hiring a new position or working with an existing employee. Knowing how to negotiate compensation with your team members in a way that makes them feel heard and valued is an essential skill to have as a manager.
The first step is to do your research. The employee will have likely done theirs and will have expectations in their mind before entering the conversation. Know the industry-standard as well as your budget to make a competitive offer.
If negotiating with a new hire on salary expectations, it’s important to know what your local laws are around asking a question like how much they are currently making at their last job. Many states (currently 21 states) are banning asking about salary history during the interview stage.
It’s good practice in the early stages of hiring to ask what their expectations are for salary. If you wait until the offer stage, you may come to realize your top candidate is out of your price range. While they may take the offer, they will likely be looking for other opportunities in the meantime and ultimately hurt your retention.
The best way to get around a surprise salary expectation is to be fully transparent in the job description and publish your salary range right away.
The U.S. Bureau of Labor Statistics reported that between April, May, and June of 2021, 11.5 million workers quit their jobs. Employees are seeking a business that not only resonates with what they want in their career (job growth, perks, benefits, and moral alignment) but that they don’t feel like their employer would be loyal to them if the time came. Millennials have seen not just one recession, but two historical unemployment events in their lifetime. What this means is that an employee’s loyalty to a company in the hopes the business will keep them on in tough times is not a realistic expectation for this hiring group.
Showing your employees you value their time, efforts, and outcomes is a major part of keeping them around.
Showing employee appreciation
This can be as easy as sending an employee a kind note during the workday or celebrating small wins throughout the month. Just be sure to be authentic in your signs of appreciation and your employees will notice. With the value businesses are offering candidates, don’t forget to show appreciation for those team members who choose to stay.
Benefits and perks influence decisions
While job seekers are doing their salary research, income is only a portion of the items they consider as they look for their next position. Perks and benefits can also play a big part as well. In Robert Half’s Employment Trends report, 40% of candidates want more schedule flexibility. The flexible work location that came out of the pandemic has shifted employee perspective and made work-from-home options a must for most industries.
Other actions employers are taking to attract new candidates, according to Robert Half, include:
- Increased paid time off
- Signing bonuses
- Increasing starting salaries
- Loosening education, experience, and skills requirements
Some of the reasons Robert Half highlighted in their survey concluded that 38% of the people who leave their job are looking for better benefits and perks, closely followed by the ability to work remotely long term (34%) and greater appreciation (28%).
Doing your best to understand what is a long-term position your employees are looking for and fitting that into your budget can not only help attract new hires but keep those loyal employees in their seats.
38% of the people who leave their job are looking for better benefits and perks, closely followed by the ability to work remotely long term (34%) and greater appreciation (28%).
As jobs continue to open up, candidates are continuing to “ghost” potential employers. Where businesses were notorious for never getting back to a candidate after they interviewed and instead of moving on with the process with whoever passed that particular stage, candidates are now doing the same. Robert Half found that 39% of employers have experienced ghosting more since the start of the pandemic. 33% of candidates who have ghosted say that the interview process was the main reason they decided not to move forward.
A clear, concise, and efficient interview process can help keep candidates moving through the hiring funnel. Senior Forbes Contributor for interview, career, and salary advice, Jack Kelly says in his February 2021 article that the hiring space has grown to be cold and impersonal compared to the interview process 30 years ago. In the past, job seekers could at least rely on feedback on why they did not get the job, now ghosting is just as common as a one-click application process.
Kelly continues by noting that hiring managers may also be afraid of offering advice and that having that conversation seems offensive or discriminatory. “A disgruntled applicant could ruin that person’s career.”
Instead of getting ghosted by a candidate, let them know that you are moving on with the interview process and offer some form of acknowledgment for their time and efforts. 80 million people in America filed for unemployment in the last 2 years. Having empathy for the struggle to find a job now can go a long way.
Hiring in any capacity now
If all of your hiring processes are aligned and you see a new in your business for a new position, companies are adding new employees across departments in 2022 for both permanent and contract positions.
71% of Robert Half survey respondents said they are increasing the number of contract hires. With more work and job flow than ever, contract positions offer flexibility in the workplace and can meet talent shortages as you look for a more permanent hire. Some industries that are experiencing shortages include administrative positions, IT, advertising, and finance sectors.
Contractors also offer specialized talent that you may need for a specific job. However, salary negotiation in this job market can be more tricky and the hire could end up being more expensive than a permanent hire. However, the contractor is only temporary. There is also a risk of low-level work quality because the hire doesn’t have the emotional buying that a permanent hire has.
Enjoy consistency and goal alignment with a permanent hire. This is someone who should see a long-term goal within the company and have an investment in the goals of the business. 65% of businesses are adding new full-time positions. That means employers should focus on providing a holistic hiring process and an excellent benefits package.
Zenefits has you covered
From new hiring trends to traditional practices, Zenefits can help you find the candidate you need. With our tools, you can manage the hiring process with ease, streamline onboarding and even track employee PTO, performance reviews, and more.
When you work with your employees to offer the benefits they want, you can track the plans they’ve selected and change anything they need in the meantime. Make your benefits not only comprehensive, but personalized as well.
The working environment has shifted and transparency is king. To sign up for a consultation and learn more about our HR solutions, visit our website.