What are the hiring challenges and trends we can expect to see in the second half of 2022?

Following the recovery of the labour market post-pandemic, there has been a marked uplift in job vacancies across the board. The dynamic has shifted from job uncertainty, to an abundance of choice for candidates and the subsequent need for recruiters to quickly adapt. We uncover some of the hiring challenges and trends businesses face in the latter half of 2022, and explore what they can do to retain and attract top talent in this new era.

Continued wage inflation

According to an ONS report on Average Weekly Earnings in the UK, there was a growth rate in total pay of 7.0% between January and March 2022. Broad predictions point to a further 3% rise for wages, with a potentially higher percentage (up to 20% in some cases) for roles requiring a high level of specialist and technical skills.

Although the increase is set to continue, wage rises could level out before they become unsustainable. Businesses can address the labour supply and demand imbalance by looking at opportunities to introduce new strategies for attracting the talent they need, as well as retaining high performing employees.

Staff retention

A wave of job opportunities, alongside a renewed set of expectations from candidates, has heightened the requirement for a more strategic approach to staff retention. Dubbed by economists as the ‘Great Resignation’, the workforce trend following COVID-19, has seen high numbers of workers switching and resigning from their jobs.

Prospective employees are now on the hunt for more development opportunities, greater job purpose, improved well-being and a workplace culture they can relate to. Again, the onus is on employers to consider more carefully what their employees need to stay happy and fulfilled in their roles. 

Demand will likely continue to outstrip supply

Towards the end of 2022, the demands of the job market will continue to outstrip the supply of skilled and talented workers, prompting further action from employers to work on their value proposition. COVID-19 brought about new expectations from employees with many candidates realising first-hand how flexible hours and remote working are not only feasible, but job opportunities with less rigid working patterns are now more readily available. Hiring companies can also respond to supply and demand by looking more at the specific and personal motivations of employees to help retain them, and offering greater access to promotion and training opportunities to their wider workforce.

Increasingly fragmented candidate pool

A more disjointed applicant pool has made it harder for hiring managers to find where their ideal candidates ‘hang out’. With so many options available for candidates to post their CVs and professional profiles, it can seem an enormous task for companies to find their star employee.

Businesses are therefore more likely to seek the help of external recruitment partners who will not simply send CVs, but dive deeper into the hidden talent pools they have access to. They are also likely to pursue more guidance from recruiters on the critical need to stand out and differentiate in today’s ever-changing recruitment market.


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