Help Wanted! Fact or Fiction
Updated: Oct 20, 2021
It is no secret that the economy has been thrown into a completely new era due to the COVID-19 pandemic. Many are coining this the “employee economy,” meaning that employees are holding the power in hiring and career movement rather than employers. But from a practicality standpoint, what does this mean and how is it impacting people, companies, and the economy as a whole?
Key factors driving the hiring frenzy
Early in the pandemic, there was incredible uncertainty in the world, and many companies and industries were shut down for a time. That caused many people to either lose their jobs or stay put at their companies, waiting to see what the future would hold. However, as the pandemic advances and the economy opens back up, people are now eager to test the market in this new employee economy.
How are employers adapting to the new employee economy?
Employers are caught being reactive, typically, rather than proactive in this new employee economy. This is due to the lack of control over the situation. Disengaged employees often seek new opportunities, but the uniqueness of this new employee economy is that high-performers and even deeply engaged employees are curious what the market has to offer them—and they are willing to jump ship if they can improve their situation and advance their careers.
Potential solutions for employers
There is no “solving” the employee economy, but employers can take steps to mitigate its impact to their operations. This includes building their hiring funnel, so they do not allow qualified candidates to leave their radar for potential openings. It also means being transparent with current staff and taking steps to improve retention, including boosting pay, adding benefits, or improving things like flexibility. Ultimately, it is easier and more affordable long-term to treat your current staff to added benefits than constantly hiring, training, losing staff, and rehiring.