January 17, 2022
January 17, 2022
The Bureau of Labor Statistics (BLS) reports that there were more than 9 million open jobs in the United States in spring 2021. But applicants are not flocking to fill these openings, for a host of complicated reasons, many of them pandemic-related.
Amid a labor shortage and higher unemployment rates, employers are scrambling to find good workers. 69 percent of employers are having difficulties filling their open positions according to ManpowerGroup. A Deloitte survey shows a widening skills gap that could cost trillions.
In an unprecedentedly difficult labor market, the war on talent takes on whole new urgency. Skillsoft CEO Jeff Tarr describes this war on talent as a new order that CEOs are living. It's apparent that this war has taken on a new dimension, and recruiting candidates from remote locations could be the perfect solution.
The war on talent or the war for talent describes the competition for recruitment and retention of the best employees. The ‘war for talent’ was introduced by Steven Hankin of McKinsey & Company in the 1990s. It’s also the title of the 2001 book by Ed Michaels, Helen Handfield-Jones, and Beth Axelrod, “The War for Talent”, describing management's ability to attract the talented people needed to deliver superior business results. The term has evolved to describe skills shortages at all levels in business.
Labor shortages are now a global issue, and raising wages and benefits isn’t a one-size-fits-all solution. It’s made employers realize that they need to adapt and evolve their recruitment and workforce attraction and development strategies. New recruitment practices are needed especially for projects that require hiring large amounts of workers.
Employers are finding they have to adopt recruiting and hiring options they would have never considered before. They are utilizing virtual interviewing, recruiting candidates from remote locations, and recruiting with simulations rather than resumes and cover letters to assess abilities rather than qualifications. New recruiting options expand the candidate pool, speed up the process, and enable employers to fill their openings where they otherwise couldn’t.
With intense competition for talent, employers need flexibility in their recruiting strategies. With more and more workers preferring freelance, contract, or gig work, employers need to adapt to new hiring practices. More workers want flexible and remote work opportunities. There are key benefits to hiring remote workers, including access to global talent.
A big benefit of recruiting remote candidates is saving money, both for employers and for employees. Studies show companies can save up to $11,000 per employee per year with full-time telecommuting. Lower real estate expenses, overhead costs, and employee call-ins all save serious money. Employees save money by working remotely too, with no commuting expenses or stress. Remote workers say they save around $5,240 per year by working remotely.
More benefits of recruiting remote candidates are increased productivity and reduced turnover. Remote workers report being able to work more efficiently off-site and being motivated to demonstrate effectiveness when working remotely. They report being able to accomplish more in less time, being less likely to take time off, and being willing to work more than when working on-site. Remote workers also report feeling just as connected with camaraderie and collaboration as when working on-site.
Replacing employees who leave costs 20 percent of the position’s salary. More advanced positions will have even higher costs for replacement. Employers see telework options having a big impact on employee satisfaction and retention, with 95 percent of employers seeing positive results.
Remote recruiting requires a slightly different approach than traditional recruiting. Employers need to develop remote job descriptions that define how to perform the work remotely. Remote jobs need to be posted to remote job boards and on social media for the best results. Employers need to be prepared to screen and interview remote candidates virtually, by phone and video conference.
Owl Labs recommends taking advantage of project management tools and recruiting and video conferencing software for remote hiring. If your company needs to hire a large number of employees for a project, consider coordinating a virtual job fair or hiring event. Other options for remote recruiting include self-recorded video interviews, live video interviews, and virtual tours to introduce remote candidates to your business operations and company culture.
Your company’s employer branding should include a clear definition and description of remote work opportunities on career pages and on social media. Develop a strong remote culture employer brand by providing flexible work hours for remote employees, provide the same career opportunities as in-office employees, and incorporate strong connections with virtual get-togethers, collaboration on projects, and regular team check-ins.
A return to doing business as usual as it was before the worldwide coronavirus pandemic is unlikely. Companies have had to adapt their business operations, including recruiting, for remote work. Gallup's research shows that remote work is here to stay and that companies that don’t offer remote work options will be at a disadvantage.
Employers with a remote recruitment strategy will be positioned to build a global talent team and enjoy the increased productivity, employee retention, and lower costs of workforce development that go with it.