Recruiting and HR are both constantly-evolving fields, but with a new decade just around the corner, change is in the air more than ever before. Today’s most proactive organisations are already preparing for these shifts by reading up on the latest trends and planning for them accordingly. While we can’t take out a crystal ball and show you the future, we can offer the next best thing — a list of recruiting and HR predictions identified by Glassdoor’s very own Chief Economist, Dr. Andrew Chamberlain.
Years of closely studying the labour market coupled with access to Glassdoor’s vast repository of data provide Chamberlain with unparallelled insight into the direction of the job market and economy at large. In his new report, Glassdoor’s Job & Hiring Trends for 2020, Chamberlain shares what talent acquisition and HR professionals need to know today to prepare for tomorrow. Read on below for a preview, and view the full report for more information!
1. Brexit Will Threaten Tech Hiring
While the details of Brexit have yet to be finalised, the UK’s departure from the European Union could have a significant impact on hiring and talent attraction. In a job market where tech talent is already scarce, changes in immigration rules could shrink the candidate pool and make hiring for hard-to-fill roles even more challenging. Even though Brexit has not occurred yet, employees have already begun to see a real-life impact — a Glassdoor survey showed that 40 percent of employees in the UK said that their company had cut jobs due to Brexit. Meanwhile, a working paper from the National Bureau of Economic Research in the U.S. found that Brexit has already reduced UK workforce productivity by between two and five percent. The impact is expected to continue into the future as well. A Salesforce survey of 1,000 UK business leaders found that over half believed the country was at risk of a post-Brexit brain drain, particularly when it comes to tech talent.
To mitigate these losses, recruiters will have to get creative — Chamberlain predicts two major tactics will be used.
“Employers’ Brexit-related immigration challenges will further accelerate the already growing trend toward remote work, which has been fuelled in recent years by improved instant messaging and video conferencing tech in the workplace,” Chamberlain says.
“Second, we expect UK-based employers to shift their focus to cities outside the UK for tech-related hiring. Since major cities like Dublin, Amsterdam and Paris — all easily accessed from London — will remain in the EU, employers can still take advantage of more flexible intra-EU immigration rules from there,” Chamberlain adds. “Although splitting up company workforces geographically has many disadvantages, it still may outweigh the high costs and uncertainty posed by immigration policies in a post-Brexit world.”
2. Culture Will Come First
In a world of increasing transparency and corporate accountability, a strong company culture is no longer a nice-to-have — it’s a business imperative. For one, company culture has a significant impact on a company’s ability to recruit and retain top talent. A recent Glassdoor survey confirmed that workers increasingly value company culture over cash, and since today’s candidates have the ability to get an insider’s look at your organisational culture through platforms like Glassdoor and social media, companies can no longer just talk the talk — they need to walk the walk as well. Furthermore, there’s a growing body of research proving that company culture drives real business results. Companies with better cultures tend to perform better financially, attract talent more easily and have more satisfied customers.
Perhaps it’s no surprise, then, that many of the world’s most influential companies are placing a renewed emphasis on employees. At this year’s Business Roundtable, a summit that brings together a group of almost 200 CEOs from top-tier brands, the organisation revised its mission statement for the first time ever, stating that companies can no longer focus on shareholders alone — they must focus on employees, as well as customers, suppliers and the communities in which they operate.
“It’s hard to overstate the importance of this shift. This formal recognition of employee culture in business today is one that executives can’t afford to ignore,” says Chamberlain. “In 2020, we expect this changing tide of CEO opinion to usher in a new wave of culture-first thinking among business leaders, elevating employee engagement to the status of core business focus for a growing number of companies.”
So, what can you do to improve your company culture? Forget about fluffy perks like free food and ping-pong tables — Glassdoor research has shown that the three biggest drivers of employee satisfaction are a clear mission, high-quality senior leadership and career opportunities.
3. Employers Will Brace for a Potential Recession
On the heels of a long period of economic growth, the UK economy is beginning to slow down. While the country is not yet officially in recession, annual growth is at its lowest since 2010. As a result, today’s most forward-thinking companies have already begun to proactively develop a recession-proof hiring strategy.
Many employers assume that hiring will become easier in a recession — but while candidate pools are typically bigger during an economic slowdown, many companies find themselves overwhelmed with a sea of lower-quality applications. As a result, companies will likely have to identify which recruiting channels deliver the most highly qualified candidates and invest in them more heavily. Employer branding will also play a critical role in helping companies stand out among the competition, in both the short-term and the long-term.
“Building a strong employer brand takes years, while most recessions last nowhere nearly as long… When the economy picks up and it’s time to ramp up hiring again, companies who’ve maintained a strong employer brand will enjoy a clear strategic advantage,” Chamberlain says. “For that reason, we expect employers in 2020 to keep the long view and maintain investments in employer branding even if the economy slows.”
Coming up with a plan for how your company can continue to invest in your culture and grow your employer brand, even in lean times, will be essential for continued success in talent attraction and retention.
On the verge of a new decade, changes in the world of recruiting and human resources are nigh. But this shouldn’t be cause for panic — employers who read up on these trends and prepare for them today will see their efforts pay off for years to come. With a little foresight and planning, you might just be able to give your company the competitive edge you need to hire and keep the very best talent.