Business 2022: Changes in the Job Market

From the “great resignation” to the cost-of-living crisis, the 2022 job market has been through a lot. The way you conduct business has had to adapt to new employee demands and expectations, with workers shifting career paths and the opportunity for more remote and hybrid working becoming the norm.

The UK’s largest independent outsourcer, Kura, below discusses the changes we have seen in the job market over the last year and how this will impact both your business and recruitment practices going forward.

Shifting employee demands

After the changes with the “great resignation”, it is no wonder employee demands are higher than before. One-fifth of employees are looking to leave their job in 2022. While the reasons for this differ between companies, even in businesses which prioritise retention, we are still seeing a willingness to leave employment which was not present a few years ago. This has meant that vacancies increased over the last year, hitting a peak in May 2022.

Randstad found in a survey of over 163,000 respondents, that 65% of workers named a good work-life balance as a top priority, choosing a healthier lifestyle over salary increase and other incentives. Employees are valuing their downtime and mental health higher than before, so the desire to find a balance between work and leisure has increased.

This means that companies are now looking at how better work culture and further opportunities in hybrid working can retain employees and appeal to jobseekers. 20% of workers want fully remote-working opportunities, while a majority of workers (51%) are seeking hybrid-working roles. Companies must now consider the benefits of home-working and the methods around which this can be achieved. You may have to adapt procedures to be more remote-friendly, while still offering the in-house security of an office environment.

Employees are now also looking for better benefits when it comes to new job roles. Offering mental health schemes, training and advancement opportunities, and company perks can all assist in attracting jobseekers.

Janine Hunt, Client Partnership Director at Kura comments, “Employees know what they want now more than ever, and it is important for the retention and employment of highly skilled individuals that they are offered good benefits. From advancement opportunities to hybrid working, the face of the job market has change dramatically in the last year, increasing employee demands.

“Employees benefit from good company culture and the encouragement for advancement within the company. These features can make your company more appealing to jobseekers. At Kura, we have invested over 750,000 hours into training, and we continue to do so for the benefit of our employees and clients alike. When your employees enjoy their work, they take pride in it.”

Cost-of-Living crisis

The cost-of-living crisis is forcing more people into employment. In the UK, employment has reached its lowest point since the 1970s, but many are struggling to keep up with the daily costs of life. This low in unemployment means that new recruitment is often a challenge for businesses. According to the CIPD Labour Market Outlook: Winter 2021-22, almost 50% of businesses are willing to increase pay in order to combat recruitment struggles. Alongside bills reaching up to £2,500 annually, many jobseekers will be looking towards higher pay to keep up with rising inflation.

This demand for higher pay, alongside a lower pool of the unemployed, can make recruitment difficult, particularly for smaller companies who cannot afford to compete with larger corporations. However, this is not the be all and end all for small business recruitment as many prioritise work enjoyment over salary. Equally, adopting services such as customer service outsourcing could be a cost-saving measure which can save your company the difficulties of recruitment, while still managing to meet growing client and customer demands.

Over the last year we have seen fluctuation in the job market, from the increased demands of workers to the shifting attitudes towards work and lifestyle. Employees are looking for better opportunities and have less loyalty to companies than before. With the increasing struggles of the cost-of-living, unemployment is down, and recruitment is harder to conduct without meeting the new demands of high-skilled workers.

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