Labor Markets: Recruiting and retention still struggle with new employee expectation landscape
Despite a softening labor market recruiting and retaining talent remains challenging for businesses. Over the last several quarters salary negotiations have seen a consistent decline, which serves as a welcome reprieve for business which have been facing eye watering salary expectations. However, the difficulty of attracting and keeping employees persists as employee expectations rise and behaviors that were once considered unprofessional have become normalized.
One alarming trend in the current landscape is the growing number of employees who accept job offers only to retract their decisions shortly afterward. According to a study conducted by HR consultancy Gartner, approximately 50% of candidates who accepted job offers between May 2022 and May 2023 later backed out and opted for positions with other employers. This phenomenon underscores the volatile nature of retaining new hires in today's fiercely competitive job market. Companies now have a mere 44-day window to make a lasting impression on their new employees.
In response to these challenges, organizations must adapt their recruitment and retention strategies. To succeed in this environment, consider having candidates engage with hiring managers early in the process. Establishing a personal connection between candidates and their future colleagues can increase commitment to job acceptance decisions. Moreover, maintaining engagement with candidates during the critical period between offer acceptance and the start date is crucial. Reinforcing their decision and keeping them excited about the role can help reduce the likelihood of reneging. Finally, organizations should prioritize effective onboarding, ensuring new hires feel valued and equipped for success. Initiatives like creating a "buddy system" to pair newcomers with experienced employees can enhance the onboarding experience and promote long-term retention.