At the end of February, there were 9.9 million job openings in the U.S., compared to 5.8 million people who are currently unemployed, according to the U.S. Bureau of Labor Statistics. It’s hard to stay competitive in this job market.
Here are four reasons why employees are in the driver’s seat this year.
1. Limited Number of Skilled Workers
Only 54% of adults ages 25-64 have college degrees, certificates or industry-recognized certifications, Forbes says. That puts those people in high demand for jobs. Prioritizing reskilling and upskilling your employees is critical to organizational success, a SmartBrief article points out.
2. Increased Transparency
Did you know that half of all U.S. job postings now include salary information? SmartBrief says 70% of organizations that list salary ranges in job postings have seen an increase in applications. In addition, 66% of organizations posting pay ranges have witnessed an increase in the quality of applicants. Meanwhile, 65% say it makes them more competitive in today’s marketplace.
3. Generational Shifts
As Baby Boomers retire and Gen Z floods the workforce, the work environment is changing. Younger generations have significantly different working priorities and preferences than those nearing retirement age. SmartBrief says companies need to adapt to this changing workforce dynamic and equip themselves with tools to effectively manage and engage rising generations.
4. Employee Rights Activism/Awareness
A recent joblist.com survey says 78% of job seekers beleive they can make more money by switching jobs rather than staying put, and 67% of employed job seekers are planning to quit their jobs in 2023. Why? They are tired of a toxic work environment. Employees are putting themselves first. Because of this, the Great Resignation is far from over, SmartBrief says.
“In this current competitive labor market, employers need to highlight what is top-of-mind to candidates, and in 2023, that is pay and flexibility,” says Bonnie Johnson of AgCareers.com.
Employees want challenging and meaningful work, plus professional development, and continuous learning opportunities. But when the survey inquired which employer perk was the most important, flexibility took the top spot, including flexible working hours, job sharing and a compressed workweek.
“Pay really matters to today’s employee and job seeker; higher compensation was the top motivator for employees to leave their current job for another opportunity. Looking at employee level, salary was of lesser importance to senior executives and most important to part-time employees, temp/contract/seasonal workers, and hourly staff,” Johnson says.
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