Biggest Recruitment and Retention Challenges Employers Face Today

Ron Miller, Director of Enterprise Recruiting at Spherion Staffing and Recruiting

The COVID-19 pandemic changed the job landscape in ways most organizations did not anticipate. It challenged every business’s ability to adapt and triggered a massive increase in employee resignation, leaving HR professionals scrambling to meet new demands. As workers quit in search of better opportunities, job growth skyrocketed, flooding the candidate pool and causing employers to rethink compensation.

Now, businesses must adjust to worldwide shifts in thinking and doing while also navigating considerable changes in their home markets. While the challenge can seem daunting, it also creates opportunity to find fresh and innovative ways to attract and retain talent. And, the staffing industry is continuing to grow every day because of it, helping to provide rewarding work and business opportunities for people across the nation. Below, we’ll explore some of the biggest recruitment and retention challenges employers face today as well as solutions to help overcome them.

Diversify Your Recruitment Strategy

From a recruitment perspective, the current problem is simple supply and demand. For a variety of reasons - some related to the pandemic impact - eligible workers are still opting out of the workforce. The skills gap is also becoming more apparent, making it increasingly challenging to recruit for more skilled opportunities compared to semi-skilled or unskilled jobs. The reality is that there is a need for skilled workers and a lack of candidates with those sought-after capabilities. Overall, this directs to a mismatch between what candidates are seeking in a job and what recruiters are looking for in candidates.

The way to find opportunity amidst recruitment challenges is to dive deep into your community to understand the people you’re serving and learn about what is important to them. By doing so you will not only draw in interested workers but have more opportunity to invest in and retain them as well. At Spherion, we encourage our franchisees to leverage the power of local. As staffing and recruiting experts that live and work in their markets, our franchisees have a deep knowledge of what is important to their clients and candidates beyond just an algorithm that only matches resumes to open jobs. They consider how different segments of the population look for employment opportunities, how they want to be communicated with during the recruitment process and what they are looking for out of an employee or employer. Businesses should leverage staffing companies like Spherion to customize their approach and truly connect with local resources to attract quality candidates.

Employee Retention

Once you’ve made a hire, the next challenge is to ensure that they stay. Interestingly, the Work Institute found that 75 percent of employee turnover is entirely preventable. Losing an employee usually boils down to pay, poor management, inflexibility and the absence of an onboarding and development strategy. What can recruiters do to decrease employee attrition?

When it comes to compensation, studies have found that money is the number one thing that influences a workforce. At Spherion, we regularly compile salary guides that are broken down by location, position and experience to help our clients find what compensation packages most align with their hiring priorities. Utilizing resources like a salary guide will help you ensure that your pay scales are working for you and not against you.

Flexibility can also be a challenge for employers that do not have the ability to offer remote work. Compressed schedules and different shift options can make a massive difference - this not only gives your employees more control over their schedule, but has also proven to reduce the number of unplanned absences at work. There are other more specific programs—such as childcare at work—that employers might consider implementing based on the needs of their workforce.

Poor management also greatly impacts the satisfaction of a workforce. Ensure that you have regular check-ins with your employees where they can comfortably share feedback or consider implementing an employee suggestion program. This will help you gather candid feedback and identify opportunities for improvement in management.

Finally, a solid onboarding strategy is also necessary to help retain employees. Focus on first impressions before diving into training, allowing the employee to interact and meet those they will be working with and supported by. When it comes to training, give the employee time to learn, understand and review without trying to meet any significant goals. As they integrate more, continue checking in with them and set clear goals that align with their progression. The first mistake many employers make is training an employee and then immediately throwing them into the deep end; instead, offer ongoing support that will make them feel comfortable asking questions and learning more about their new role.

Economic Challenges

There’s no denying that economic pressure stemming from rising inflation is putting a significant strain on recruitment and retention, with candidates seeking better opportunities that will carry them through uncertain times.

"To find opportunity amidst recruitment challenges, one must understand what is important to the people being served. This leads to drawing interested workers and have more opportunity to invest in and retain them as well"

In the short term, recruiting is going to be a battle for talent. Employers that do not have a defined, diversified and inclusive recruitment strategy, as well as the budget to invest in employee retention, are going to continue seeing small candidate pools and high turnover. A strategic marketing budget is becoming a necessary recruiting expense in addition to the usual administrative and screening costs. And if you do not have the flexibility to adapt quickly to the market, your recruiting challenges will be even greater. To quote the title of a great book by Marshall Goldsmith, “What got you here won't get you there.”

Regarding long-term economic effects on recruiting, we are still seeing the start of a prolonged shift toward virtual workplaces and an increased reliance on technology to collaborate. As the makeup of the workforce continues to evolve, a majority of organizations are still trying to solidify a recruiting strategy. Recruiters need time to find the right balance of tools, people, knowledge and strategy to support the process without losing the human element of recruiting.  At Spherion, we’re constantly testing new technology, strategies, or platforms for our franchise owners so they can focus on connecting their local workforce with rewarding employment opportunities. This balance of technology also allows our franchise owners to streamline their processes while keeping the one-on-one, human connection that helps to build relationships and trust with candidates.

Looking Ahead

At the end of the day, employers will always face new recruitment and retention challenges. While the last several years have certainly posed a unique challenge, it also provided an opportunity for the industry to find even more inventive ways to staff the workforce. By leveraging resources (like a great staffing company), keeping a finger on the pulse of national and hyperlocal trends and staying nimble in your retention strategy, you’ll better equip yourself and your business for success in the future.

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