As the hiring market remains difficult, more organisations are struggling to fill roles. With increased wage demands thanks to high demand and the rapid rise in the cost of living, many companies are feeling lost and aren’t sure what to do next.
We’ve been helping our clients continue to hire, in spite of all that. But what can your business do if you’re struggling? It’s important to assess the current situation in the job market and figure out an action plan to keep your business moving forwards and avoid stagnating.
Are salaries really rising?
Yes. Not just because of the rapid rates of inflation, but the struggle for companies to hire talent in a complex market. As CIPD report, many UK firms are set to increase pay for their existing workforce to combat recruitment challenges but will struggle to keep pace with inflation.
As applicants understand the demand of the market, they demand more pay. If you’ve found a perfect applicant and their salary request is reasonable, the obvious choice is to hire them. But more often than not, a long and tedious negotiation starts. This slows down your hiring process and creates a bad precedent for future hires.
Transparency is key
With modern job ads, we believe it’s vitally important to be open and honest about the salary bracket. Whatever you can afford and are willing to pay, state it to the applicant. If you’ve got someone who isn’t happy with the bracket, they’ll move past. But if you’ve got someone talented and fresh-faced who fancies a challenge, you may be able to hire a quality, long-term talent within your expected budget.
The worst thing you can do? Advertise your salary as competitive. You’re shooting yourself in the foot and applicants who read this will likely just keep scrolling past. As a result, you may be losing out on amazing talent through fear that your competitive salary isn’t going to match what they’re after. So without even the hint of a conversation, you’ve let a potential hire slip through the net.
What if you don’t want to spend more?
There’s no requirement for you to start spending more on hires. If you don’t want to fork out more, then don’t. However, this is likely just the tip of the iceberg when it comes to staff wanting more money.
Many individuals, alongside businesses, are struggling to deal with the rise in the cost of living. Whilst this may balance out further down the line, we are headed for a tense period between employer and employee where money becomes a more important factor when it comes to retention.
You may find within the coming months and years that you’ve no choice but to start offering more money, both to keep your existing staff and find new ones.
What’s the alternative to simply increasing salaries?
That being said, money isn’t the be-all and end-all for many. As we’ve said before, many millennial and gen-z applicants are looking for a role with purpose. They want to play their part in something bigger and are less concerned about the paycheck.
With many people venturing out on side hustles and diversifying their income, many will be content to go to a job where they’re guaranteed a paycheck, love what they do and love the people they work with.
If you can make your workplace culture irresistible and play your part in becoming more socially conscious, you may find that staff are happier and therefore less worried about their pay.
Concerned about your next hiring cohort?
In spite of a tough hiring market, we are consistently delivering fast and cost-efficient hires for our clients. How are we doing it? A perfect cocktail of experience, understanding and commitment to our valued clients.
If you feel like you’re missing out - you probably are. Choose a talent partner that delivers for your business and ensures you hit all those hiring targets - without fail. Talk to us today.